What influences share price?
What influences share price?
Here’s a mental model for thinking through systematically the dynamics behind the numbers.
Valuation multiples also play a role in share price, so that’s the change in FCF yield. $S&P 500(.SPX)$ $NASDAQ(.IXIC)$ $DJIA(.DJI)$
Image
FCF growth (at the top). Some companies do this with low ROC (by taking on more capital), others do it with high ROC. See below.
Image
Two things you can do to become a better investor:
1. Limit the number of companies you own
2. Limit how frequently you trade
This forces you to:
1. Only own your best ideas
2. Accept there will always opportunities you miss out on
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
