Winning Strategy in an Illogical Market

Simplifying Success

In the world of investments, we constantly encounter headlines that seem to defy all financial logic. Recently, we have seen how Tesla's shares did not meet expectations, and yet their market value increased by a surprising 12%. On the other hand, Meta exceeded estimates and, counterintuitively, its price fell by 15%. These events can perplex even the most experienced analysts.

This phenomenon leads us to discard all the fundamental principles we have learned at university or in master's programs costing over $100k.

Obviously, we have all gone through that stage where we overestimate our asset selection capabilities. This drives us to study a company's financial statements.

I am not saying that it isn’t beneficial to understand how a company functions from the inside, where the capital is distributed, and how profits are generated, but I am saying we should not do this solely to make money.

As I told you last Sunday, and many other times, everything is driven by macroeconomics, and especi…