Investment Strategy: “Cheap Always Works!”
The statement “In 3 years, a gain of 108.4% – because cheap always works!” could refer to an investment strategy that focuses on purchasing stocks or investments perceived as undervalued or inexpensive. This strategy is based on the assumption that low-rated investments have the potential to recover and achieve above-average returns in the long run.
Forecast on Price Development
A forecast of a 108.4% increase in three years is ambitious and presumes that the selected investments have significant growth opportunities. Such forecasts are often based on market analyses and assessments of the future performance of companies.
Relevance for Private Investors
For private investors, it is important to carefully evaluate such strategies. This includes analyzing the risks and opportunities as well as considering one’s own investment goals and risk profile. A long-term investment strategy that also covers the interest component through bonds can help diversify risk and achieve stable returns.
Examples and Analyses
A current example of an undervalued stock might be Tilray, whose stock price has fallen sharply in recent months. Despite the challenges, there are positive signals, such as the increased gross margin in the cannabis segment. Such developments may encourage investors to invest in undervalued stocks, hoping for long-term recovery and growth.
Conclusion
An investment strategy that focuses on cheap assets can be interesting for private investors, especially if it is long-term and minimizes risk through diversification. However, it is crucial to conduct thorough research and consider one’s financial goals as well as the risk profile.