A scholarship offers many opportunities, but it is not for everyone, meaning that you must dedicate time to study. The 63-year-old investor has achieved an annual return of more than 50% over the past 5 years.

This was told to us by “La Cafea” (from afar) by Raresh Mykhailo, an investor and financier, known especially thanks to the InvestestelaBursa.ro YouTube channel.

“The other day I had an investor with whom I spoke on the InvesteștelaBursă platform. He is 63 years old. He presented us with the results of his investment portfolio. He had a huge profit: the average annual profit was more than 50%,” he said.

What is the secret of huge profits in the stock market

“He told us that the secret to such good returns is to always be in the market and not panic. He always invests somewhere around 20% of his salary. He is still working and will retire soon,” Mykhailo said.

• 20% is saved and constantly invested in the stock market.

“He has invested in companies such as Teraplast, the majority shareholder of which is the state, and recently he has also invested in corporate bonds. It has always been in the market for 15 years and has had very good returns for the last 5 years,” he told us.

• The secret is to always be on the market, always invest, always keep abreast of news, companies that invest.

“In situations like this, when the government issues emergency orders with measures, you can, sometimes abnormally, be in the market and take advantage of those opportunities when investors panic, and those opportunities give you the opportunity to buy stocks that you probably wouldn’t will meet every day,” he added.

Some of Rareș Mihăilă’s statements that you can find in the VIDEO:

• Everyone can invest in the stock market. You don’t have to be a broker, a financial analyst with a tie and a diplomat to enter this universe of the stock market.

• A person with a conservative level of risk has no business in the stock market investing in stocks or cryptocurrency

• An investor with an aggressive risk profile can invest in individual stocks, ETFs, mutual funds

• An investor who can devote several hours a day to investments or at the end of the week to look at portfolio companies, read financial reports, can actively invest. This is an active approach.

• If you don’t have time to research companies to stay informed, then passive investing is fine. You build a portfolio of multiple ETFs, and when you buy units of the fund, you either go into mutual funds or into government securities.

• There are many investors who don’t have time to research companies, but they read in various social media groups or see on YouTube that Apple is a new opportunity or that Tesla is going to be the hottest company. Once they’ve bought the stock, they leave it there and don’t get any information, don’t commit to the portfolio, hoping that at some point they’ll get the stock back if it somehow works out.

• When you invest in companies, you should start with a horizon of several years. Even if you’ve done your homework well, you’ve studied the company, you’ve done all the calculations, you realize that this company is undervalued, the market may not prove you right in 3 months, 6 months. He can prove you right in 1-2 years.

• The share price will always be in line with the financial performance of the company, but for the price to rise, as many investors as possible must be convinced that the company is good, has exceptional results and is undervalued.

Sections from an interview with Rareș Mihăilă

0:00 INTRODUCTION

0:28 Rareș Mihăilă is a fin

0:57 A YouTube channel he follows in the field of financial education

3:40 What to invest 50,000 euros in? How should people who have such questions think

6:40 How much time should an investor spend on market research

10:20 Investments in funds, ETFs should be considered in the long term. How many years are we talking about?

12:44 What state titles do you think are more suitable?

17:12 How a 63-year-old Romanian investor made a big profit

19:40 Is he worried about the budget deficit?

21:20 Tax changes that came into force in 2023 and how investors feel about them

23:50 What’s it like when you see that your portfolio is at a loss? How to deal with the situation

27:29: Which book does Rareș Mihăilă recommend to investors