- Qualcomm and MediaTek
- Intel and AMD
I never tire of admiring the entrepreneurial genius of Elon Musk, who knows how to create added value out of thin air. On Tuesday, a genius, showman, playboy and philanthropist unexpectedly tweeted in the media field in such a way that the resonance swept all over the world media.
Translation: I'm considering buying back Tesla shares at $ 420 apiece
Only 46 letters, and the effect of $ 6 billion, as after the tweet, Tesla's stock value rose 11%.
Initially, people began to doubt, since at that time the shares were trading at $ 350 apiece, and Musk decided to buy back at $ 420, which looks more like a joke, since 4:20 is a reference to cannabis use (this is illegal in Russia and harmful for health, do not even try to do it in Russia! Better go to Amsterdam, there you can also eat mushrooms), and, as you know, the entrepreneur's sense of humor cannot be called standard.
Now the market is gradually recovering from the sharp movements of Musk, and the value of Tesla is returning to normal. Actually, this is all you need to know about the stock market and the capitalization of the same Apple of 1 trillion.
However, in this article I propose to think about options for investing in the stock market, since sooner or later we will come to this. Let me explain my idea. Earlier, due to the high key rate in Russia, it was relatively profitable to keep money in a bank deposit.
In 2018, at the very least, the Central Bank manages to keep inflation under control and gradually lower the key rate, which leads to a decrease in the interest rate on loans and stimulates the economy, providing access to cheap money.
However, there is also a minus. Bank deposits are becoming less and less effective for keeping savings.
At the moment, rates are at 6%, but tend to go down. I believe that within the next 5 years we will reach the level of bank deposits of Western countries, which is unrealistic to live on interest rates, since they are at the level of annual inflation. For example, here is a selection of US bank deposits. Here are not classic savings deposits (they are subject to a maximum rate of 1.8%), but the so-called CDs, or certificates of deposit, are like a bank deposit, but a certificate is issued that you have lent your money to the bank. Unlike traditional deposits, here the profitability is higher, since the certificate is, in fact, a security, so it can be sold or pledged. So, for August 2018, the following rates apply:
The rates are at the level of 2-2.5%, that is, the target value, to which the US Treasury wants to accelerate inflation in the country.
Things are no better in the UK. The best option is offered by ICC Bank:
That is why the culture of investing money in the stock market is developed in Western countries, since it is believed that the average level of annual income from a well-selected investment portfolio is 10%. Например, вот доходность от S&P 500 с момента появления. The crisis years 2007 – 2011 were difficult, but starting from 2012 the purchase of the index brings 15% annually.
Next, I offer a small selection of stocks of the most famous IT companies. Let's see how much you could earn by opening a $ 1,000 position 2 years ago, that is, around May 1, 2016. In these calculations, I suggest neglecting broker commissions and dividends.
Microsoft in recent years has been changing strategy, removing Windows from the pedestal, playing with the clouds, but we still scold the company for decisions that may seem short-sighted to us, and operating system glitches.
So, on May 1, 2016, the stock Microsoft was selling for $ 50 minus a couple of cents. It turns out that for $ 1,000 one could take possession of 20 shares of the company and turn into a minority shareholder. Today, August 10, 2018, the shares are trading at $ 109.69, which is $ 2,193 for 20 shares. It turns out that in 2 years it was possible to double the invested funds, or get (2 193 – 1000) / 1000 100% = 119% of the total profitability.
One of the strengths Microsoft is that the company pays dividends quite regularly (every quarter). They average about 40 cents per share.
I painted it in enough detail so that there were no questions about the methodology.
The most expensive and loved by investors all over the world company. The last 10 years Apple are experiencing, I believe, their golden age, as stocks are growing by leaps and bounds, which attracts even more new investors.
With a starting price of $ 92, almost 11 shares of the company could have been bought, enough for the media to speculate about the possibility of a hostile takeover. With a sale price of almost $ 209, the final return is 125%. 6% more than Microsoft.
If there is Apple in the list, then you can't do without Samsung. We must also make a curtsey towards our most devoted readers and give the opportunity to cheer.
In general, Samsung is traded on the Seoul Stock Exchange, but if there is a desire to buy their shares, having a broker only in the US, then you need to pay attention to South Korean ETFs, in which Samsung has a significant share of the portfolio. For example, iShares MSCI South Korea Capped ETF. GDRs are also available on the London Stock Exchange. If we convert from South Korean won to dollars, then the final profitability for 2 years will be about 80%, taking into account the weakening of the Korean currency against the dollar.
Elon Musk's company is failing in the market. However, he is the idol of millions, the living embodiment of Tony Stark from the Marvel comics universe, and such a person can be trusted without looking. In May 2016, Tesla shares were at one of the next peaks and were sold at $ 209.44. In total, for $ 1,000, you could buy almost 5 shares, and then casually say to women on dates: 'I became a Tesla shareholder here, I recently came in a quarterly report. You know, it seems profitable, but dividends are not paid. I am thinking to buy more Samsung shares through Caribbean offshore companies or through GDRs on the London Stock Exchange … '. It is highly likely that the woman will not understand anything, but will be very impressed with your financial streak. There is a suspicion that Elon Musk finds women for himself according to this scheme.
The current selling price is $ 350.88, which means 67.5% over 2 years. In my opinion, not bad for a company that collects cars in an open field, right?
Largest Chinese location outside of China in history. Having bought almost 13 shares in 2016, in August 2018 they can be sold for $ 178 or get a 127% return. The hype around the Chinese online retailer is less than around Apple, but the profitability is a couple of percent higher.
Founder Amazon Jeff Bezos became the richest man in history. His fortune exceeded $ 150 billion. This is not just a lot, but an unrealistic lot. The magnitude of this amount is hard to grasp. For example, to make such a fortune, a person needs to earn $ 100,000 every day for 4,110 years. Almost the entire history of mankind fits into this gap. Kingdoms in Egypt are changing, the Olmec civilization in Central America is born, flourishes and dies, the Greeks, led by Brad Pitt, storm Troy, dreaming of possessing Elena the Beautiful, Jesus Christ is born and dies, heralding the beginning of a new time reckoning, and some abstract person all this time earns by 100,000 US dollars a day, or their equivalent in gold … And only by 2018, if you save everything, and not spend, you can get a fortune like Bezos.
Amazon has extremely expensive shares, and it is high time for the company to split, that is, to increase the number of shares outstanding and thereby reduce their value. $ 1,000 could buy 1.47 shares. Today, the securities are at their peak – 1894.29 US dollars per share, that is, having spent 1,000, after 2 years you can get back 2,800 dollars, or 180% of the yield.
Qualcomm and MediaTek
One of the most important players in the chipset market. And it seems that the shares of this company should always be in price, as solutions from Qualcomm enjoy well-deserved popularity in the market. However, investors don't think so. Having bought shares at $ 51.03 per share, you can sell today for 64.07, or 26.8% of the yield. Compared to other players, there are not so many, but still more than classic deposits of 8-10%.
Along the way, the majority prefer to speak negatively about MediaTek. The company is listed on the Taiwan Stock Exchange. And, unfortunately, it is difficult to buy through other financial instruments. Profitability for 2 years – 43.65%.
The trouble came to Mark Zuckerberg from where they did not expect. Against the background of previous scandals with the distribution of data about its users to third parties, sabotage of the US elections and other obstacles, the shortfall in revenue of $ 100 million compared to analysts' forecasts seems like a trifle, but it was the last straw, and the total capitalization of the company sank by $ 91 billion. Now there has been and has almost passed one of the best opportunities for opening a position in the company, while the shares were at the minimum.
However, in our hypothetical example, the stock was purchased 2 years ago at $ 118.73 per share. In August 2018, we sold 8.5 shares for $ 180, thus earning $ 500, or 51.87% in 2 years.
Google, or better to say 'Alphabet', is one of the safest ways to invest money, since companies, thanks to their diversified business and ubiquity, are not afraid of any problems. Google already reads emails from its users and sells this data to advertisers. But that doesn't bother anyone. I suppose even if Google started posting correspondence and candid photos of its users in the public domain, the majority would have frowned, but continued to use the company's services.
The company does not interfere with splitting its shares, as they are quite expensive, which repels many potential investors. By buying shares at $ 720 and selling for $ 1,252, you can get 74% over the years.
Intel and AMD
The company Intel cannot cope with the 10 nm technical process in any way and for a year churns out outdated solutions using 14 nm technology. While the same Qualcomm in the mobile segment is trying 7 nm with might and main. And the main competitor AMD openly scoffs at the failure of the enemy. Question: what do investors think? Most of the shares in the company sank when it became known that the former CEO was engaged in illegal fraternization with some unnamed company employee. Puritan America can forgive a lot, but not the betrayal of his wife and 3 daughters.
However, 2 years ago, shares could be purchased for $ 30 each, and for once a thousand dollars worth a solid bundle of 33 pieces of paper. In general, they should not be sold now, since the market has not yet won back the drawdown, but the conditions of our experiment are tough, so we 'merge' everything at $ 48.9 apiece. Profitability for 2 years – 62%.
At the same time, I suggest looking at how AMD is doing. The company has been doing great lately. To be honest, in this case the exercise is absolutely fabulous, since it is assumed 2 years ago that AMD will shoot … Meanwhile, AMD is like bitcoin, only much more reliable. The stock traded at $ 3.6 a share then and is trading at $ 19.11 now. You definitely shouldn't sell them, as the company is storming new heights. So, the profitability for 2 years was 431%, that is, having invested $ 1,000, it was possible to withdraw $ 5,312. I never dreamed of this Apple.
Recently, Sberbank was once again named the most innovative bank in Russia. This is very funny news, since, having moved from St. Petersburg to Moscow, I was faced with the fact that I could not transfer money from my St. Petersburg card to the Moscow card of another Sberbank client without a commission, so I had to open a card in Moscow. Now I transfer money through my personal account from my St. Petersburg card to the Moscow one (there is no commission here) and only then to the Moscow client of the bank. Even reading this innovative algorithm is tiresome, and rewarding for it is generally so strange. However, 2 years ago, the shares were traded at 120 rubles, and today they can be sold at 180 rubles, that is, get 55% in 2 years. And this shows that the markets are now good times, despite all the sanctions and other problems, because in this case, even a stick stuck in natural fertilizers sprouted perfectly.
In the comments, you can tell what you prefer to invest in, what profitability you get. And remember that the stock market grows exactly until you enter it, so the information in this article is for fun. Don't spoil other players with raspberries. Keep your money in savings banks.