Now that prices are particularly low again, and therefore interesting, many people are wondering if the time to buy hasn’t come. If almost everything we find for sale in shops and supermarkets today costs much more than it did a year ago, and much more than inflation data might lead us to think, the same cannot be said for shares, crypto, shares in startups and so on.
Has the time therefore come to widen the purse strings and start buying paintings, old cars, shares, precious wines, houses, NFTs, cryptocurrencies?
Many of the words just read refer to world of luxury. As we all know, one of the most important brands in that market is Dior. But if instead of high fashion and beauty products you prefer digital assets or shares you should seriously consider DYOR.
DYOR is not a fake brand, as they used to be found in certain markets: Armadi, Praba, and so on. No, DYOR means Do Your Own Research, or Do Your Research. It means that instead of trusting my cousin or articles like this, it’s better if you start studying.
In hindsight, it’s incredible how many people buy certain stocks just because they’ve read somewhere that they could increase in value, or because they’ve heard the hairdresser say so. I have the feeling that on average we get more information when we think about buying a work of art as an investment: after all, galleries should really do that, helping us to understand more about it (disclaimer: I love art but I like bare walls).
Keywords for feeling super cool
by Adriano Marconetto
To make up for our laziness, or the lack of in-depth analysis skills, the world of finance has equipped itself with the figures of analysts and consultants who, in fact, scan the financial statements of listed companies and provide reports which should serve precisely to understand if and when it might make sense to buy a specific stock. If only we wanted to get hold of and read these reports.
Buying a cryptocurrency shouldn’t be too dissimilar to buying a stock, At bottom. With the exception of bitcoin, these have generally been issued to finance a particular project. For example, shares of the Ethereum blockchain or the Polygon platform cannot be purchased because they are on-chain projects (indeed, Ethereum is the main one among the blockchains), therefore there is no company with a VAT number etc. If one thinks that Ethereum and/or Polygon will be relevant in the future and their weight will increase significantly in the coming years, he can think about buying their coins, Ethereum and Matic respectively. If, on the other hand, he doesn’t believe in blockchain technology and thinks it’s all hoaxes, he should steer clear of it.
But how to find out? Simple: with DYOR. By reading books, articles, white papers, tweets, and so on. No one has infused science but by comparing different sources and studying every day for a while, you can get to have such knowledge of the projects that you can make a less superficial decision.
It’s what those who invest in startups do, or should do: a friend may have told you that a particular new company seems to have what it takes to grow well, but before you put any money into it, you’ll want to know more.
How to understand if a specific Nasdaq stock can be an opportunity? Informing us and studying. Ditto if we want to buy one of the thousands of cryptocurrencies on the exchanges.
Getting informed and studying also means knowing how to filter hundreds of theories, ideas, opinions often conflicting on the net. I realize it’s not quick or easy but only DYOR can raise our awareness of things that may appear exciting only to prove indigestible – or the other way around.
So, if we meet around, don’t ask me if, when and what to buy: rather rely on DYOR.
Happy study holidays!