Does it make sense to invest in Sony?
I've been investing in ETFs for a long time, but now I want to invest in individual stocks. Hence my question: does it make sense to invest in Sony?
Due to the new Ps5 and because the hype is not over yet and especially because the next wave is apparently only supposed to come in the middle of the year and in large numbers, I think it makes sense. I still wanted to hear other opinions about it.
Well you have to consider that the price is not based on the current situation but on future expectations. So the things you have just listed are known to everyone else and the price is correspondingly high. That means it can theoretically go on successfully but if the success is smaller than expected the price drops although the company itself makes a profit.
What I mean by that, nobody can tell you whether or how it will go on in the future. Otherwise it wouldn't work either. Because if everyone knew where it was going, nobody would sell or all would sell.
Okay thanks for your answer.
No problem. I don't want to talk you out of it. If you have the money and you feel like it, do it. It can just as well go the other way around, everyone underestimates it and you have made a lot of profit.
From the chart alone it would not be a bad idea and worth a "try" (LONG-TERM thought). The reasons for this are not listed by you, their answer Osterkarnigel, exactly correct.
Why do you think it could grow in the long run? Does it have to do with market growth in general or are there reasons that are specific to stocks? Purely for the sake of interest.
The chart has been slowly but steadily increasing for years. So, if Sony isn't making a huge mistake, why shouldn't it go on like this? Check out the charts of (many) other big companies that are also up and running. LONG-TERM investing in such companies is seldom a mistake, so in the long term, you can sit out a "kink" like here in the chart around Sept 18
But it is wiser to diversify away the risk
It's always smarter, no matter what company we're talking about! One should NEVER put everything on one horse.
But in general, EVERY share purchase also entails risks.
Those who do not want to take the risk are of course better off in ETFs, although they are not entirely without risk and are (can) subject to fluctuations, but less so than individual stocks
