when a company offers stocks on the market, it becomes publicly traded, and each stock represents a portion of ownership in the company. This can be appealing to investors, as the value of their stocks can increase if the company performs well. In the global stock markets, investors place bids by offering a specific price, while sellers ask for a certain price. When these two prices match, a sale takes place. It is common for multiple investors to bid on the same stock, and in such cases, the first investor to place the bid is the first to acquire the stock. Many investors aim to target successful companies like Tesla, Apple, Netflix, or similar stocks, as they believe it provides exposure to blue-chip opportunities. This decision is often driven by the desire to achieve better outcomes compared to local investments.
Global equities should be considered as a process of selecting assets that offer a favorable risk-reward profile for portfolio allocation. This process requires having conviction in the chosen assets and conducting reasoned analysis to support that conviction. Well-researched stock investments, based on calculated analysis, can yield attractive returns for clients, whether held in the short term or the long term. It is crucial to have a clear and consistent analytical framework that allows investors to thoroughly evaluate opportunities. This evaluation should consider both the cash flow generated by an asset and the price paid for that cash flow, as future returns are influenced by these factors. Additionally, it is important to incorporate an assessment of future risks to the cash flow when making investment decisions.