Is it worth investing in the Russian stock market? How to save for a comfortable old age? How to competently form your own pension Fund at the expense of dividend blue chips? How to choose the right shares "for the future". About this and not only talk in today's article.
To illustrate the fact that it is quite possible to form your pension Fund from the blue chips of the Moscow stock exchange, take the shares of Gazprom.
Last year, the price of 1 share of Gazprom was at the level of 130 rubles. The best strategy at that time was investment, that is, the shares could be bought monthly with free money. Thus, by the end of the year, a portfolio of a certain number of shares would have been formed. Those who last year adhered to such a strategy with Gazprom are now in a good plus. Moreover, even speculators have not received such profits as investors. This is due to the fact that the speculator begins to get nervous, trying to catch the levels. When a stock moves sharply upwards, the speculative strategy loses.
Of course, this is the real yield, BUT this figure does not mean annual growth, but the final profit when buying a stock at a minimum and selling at a maximum.
What should be done to form a personal pension Fund
The formation of a personal pension Fund takes place in several stages:
- We find a promising share (we will discuss this below).
- Deal with fundamental (what is action, what benefits, what investment, what are the prospects).
- If everything is satisfactory, we start buying shares on a regular basis.
What stocks are promising in 2019-2020?
In addition to Gazprom, which is now not as profitable as it was last year, we can recommend to pay attention to such companies as:
All these shares in the future 3-5 years will grow significantly in price. All companies have investment programs. For example, Severstal will continue to implement its investment program for the next 2 years, after which it will sharply increase its dividends by increasing profits. This will lead to a rise in the company's share price to 2 000 – 3 000 RUB per share. Severstal plans to become the No. 1 steel company in the world.
VTB - ambiguous action. It can easily grow by 10% per day, the same can fall. The stock goes illogically, so it is not suitable for speculation. In the long term, the stock is good, as it is currently trading at low levels, and the prospects of the company are good.
Rosneft - currently, the company's shares are growing, which is quite logical, since the company has dividends ahead. Stock promising, as after the company pay off your debt, which she gradually makes the company's profit will increase, which will lead to higher stock prices (can go to 1000 RUB per share).
Sberbank - dividends are expected to reach RUB 25 per share in the next few years. For 2019, the projected dividends will be 21-22 rubles per share, and a year later-25 rubles, which is very good, given that the Ministry of Finance predicts inflation next year at 3%, given the gradual decline in interest on deposits and loans. Of course, the shares of Sberbank with a yield of 10% is an impossible situation, so the prices of these shares will inevitably grow.
In General, the reduction of the key rate will lead to a revaluation of the stock market. Analyzing the history, you can see confirmation of this fact: wherever Central Banks cut the key rate, growth began. Therefore, the investor approach is the most optimal.
If you want to come to our stock market with long-term plans-now is still a good time. Of course, August was a little better (stock prices were lower, however, ahead of us is another rebalancing, which may give another chance to buy shares at competitive prices).
What to consider when choosing stocks to invest in
First of all, the indicator P/E (capitalization of the company to its profit) is analyzed. For example, Gazprom's profit for 2018 was about 1.5 trillion, capitalization-3 trillion, i.e., in fact, the capitalization was 2 annual profits. For comparison, in the United States, this figure is from 20 and above. Some companies even have 50. I. e. Gazprom was a cheap company. Now Gazprom's profit has remained approximately the same, and the capitalization has grown to 5 – 6 trillion, i.e. the indicator has decreased. Stocks are still cheap, but not anymore.
Thus, this indicator is excellent for assessing the profitability of investments.
Let's give another example. Shares Of The Magnet. When the share price was at the level of 12 000 rubles., p/E was at the level of 20, that is, 20 years the company had to work, showing net profit to gain this capitalization. This is a very high level for the Russian market, even for the Western market is not enough. It is obvious that the shares formed a bubble, which later burst. Thus, by calculating this figure, it was possible to avoid losses incurred by investors who invested in Magnet shares at high levels. P/E is a very important fundamental indicator.
It is very important to carefully choose stocks for long-term investment. Proof of this can serve again same shares Gazprom.
As the graph shows, in 2008 at the highest point the shares were worth RUB 360 per share. Since 2017, prices have fallen sharply and still have not recovered, although the reversal has already occurred.
Naturally, investments in the stock market are not all rosy. In addition to the situation with the fall of the stock price, there are commissions, taxes and more, but this is a topic for individual articles, so as not to overload one article with a lot of information.
Why form your own pension
This question is probably not worth it, because you are reading this article. Hope for our state, like any other, is not necessary, so everything is in our hands. In principle, in the West everyone does.
Over time, your dividends will fully pay for all your expenses, i.e. you will live on dividends. Moreover, it can happen quite quickly. So, if you start investing at the age of 20, then, in a good scenario, by the age of 30, your investment income can cover your expenses, and you can do what you want, without thinking about what you will eat. That is why they come to the market to gain financial independence. Of course, everyone has their own dreams, everyone decides how to dispose of dividends
Our task is to explain how to invest, how to find high-quality shares, how to manage finances competently.
In the US, about 50% of the population is involved in the stock market. In Russia every year recorded the influx of new users, but we are still far from America. Given Russia's population of 150 billion, 50% of the population is 75 million people. As of the end of August 2019, the number of individuals registered on the Moscow stock exchange is slightly more than 4.5 million people. This figure is growing from month to month. More and more people realize that deposits do not bring the expected return and come to the stock market.
In the future, we plan to continue the topic of forming a future pension, as this is a very important issue, which, judging by the number of appeals to our editorial Board, worries many.
In order not to miss new interesting articles, subscribe to our newsletter, as well as to our social networks.
Still have questions? Write them in the comments, our experts will answer you soon.
If the article was useful, please share it on social networks.