STOCKPICKING VS.

 S&P 500 & DAX

INDEX FUND
 DIVIDEND YIELDS INVESTING IN 2021
1) 2021 INVESTING
 Higher dax, we are going to analyse 70 German stocks soon, SITUATION
so subscribe!
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 S&P 500 & DAX
INDEX FUND
 DIVIDEND YIELDS INVESTING IN 2021
1) 2021 INVESTING
 Higher dax, we are going to analzye 70 german stocks soon, SITUATION
so subscribe!
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!

 RETURNS FOR THE S&P 500
EXPLAINED
 3 COMPONENTS:
 CURRENT EARNIGNS VS PRICE
 GROWTH ORGANIC
 GROWTH INFLATION
STOCKPICKING VS.
INDEX FUND
INVESTING IN 2021
1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RETURNS FOR THE S&P 500 INDEX FUND
EXPLAINED INVESTING IN 2021
1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RETURNS FOR THE S&P 500 INDEX FUND
EXPLAINED INVESTING IN 2021
1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!

 RETURNS FOR THE S&P 500
EXPLAINED
 3 COMPONENTS:
 CURRENT EARNIGNS VS PRICE
 GROWTH ORGANIC
 GROWTH INFLATION
STOCKPICKING VS.
INDEX FUND
INVESTING IN 2021
1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RETURNS FOR THE S&P 500 INDEX FUND
EXPLAINED INVESTING IN 2021
 3 COMPONENTS: 1) 2021 INVESTING
SITUATION
 CURRENT EARNIGNS VS PRICE
2) INDEX FUNDS
 S&P 500 = 3714 POINTS RETURNS
 EARNINGS = 140 3) STOCK PICKING
POSSIBILITIES
 PRICE TO EARNINGS = 26.52
4) INDEX FUNDS RISKS
 EARNINGS YIELD = 100/26.52
5) STOCK PICKING
3.77% RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!

 RETURNS FOR THE S&P 500
EXPLAINED
 3 COMPONENTS:
 CURRENT EARNIGNS VS PRICE
(3.77%)
 GROWTH ORGANIC
 GROWTH INFLATION
STOCKPICKING VS.
INDEX FUND
INVESTING IN 2021
1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RETURNS FOR THE S&P 500 INDEX FUND
EXPLAINED INVESTING IN 2021
1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RETURNS FOR THE S&P 500 INDEX FUND
EXPLAINED INVESTING IN 2021
1) 2021 INVESTING
SITUATION
140/50 = 2.8
2) INDEX FUNDS
2.8^ 0.05= 5.2%
RETURNS
3) STOCK PICKING
50 years – 6.6% POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RETURNS FOR THE S&P 500 INDEX FUND
EXPLAINED INVESTING IN 2021
 3 COMPONENTS: 1) 2021 INVESTING
SITUATION
 CURRENT EARNIGNS VS PRICE
2) INDEX FUNDS
(3.77%)
RETURNS
 GROWTH ORGANIC (2%) 3) STOCK PICKING
 GROWTH INFLATION (3%) POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
 TOTAL RETURN S&P 500 = 8.77%
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RETURNS FOR THE S&P 500 INDEX FUND
EXPLAINED INVESTING IN 2021
 3 COMPONENTS: 1) 2021 INVESTING
SITUATION
 CURRENT EARNIGNS VS PRICE
2) INDEX FUNDS
(3.77%)
RETURNS
 GROWTH ORGANIC (2%) 3) STOCK PICKING
 GROWTH INFLATION (1%) POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
 TOTAL RETURN S&P 500 = 6.77%
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RETURNS FOR THE S&P 500 INDEX FUND
EXPLAINED INVESTING IN 2021
 3 COMPONENTS: 1) 2021 INVESTING
SITUATION
 CURRENT EARNIGNS VS PRICE
2) INDEX FUNDS
(3.77%)
RETURNS
 GROWTH ORGANIC (2%) 3) STOCK PICKING
 GROWTH INFLATION (3%) POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
 TOTAL RETURN S&P 500 = 8.77%
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RETURNS FOR THE S&P 500 INDEX FUND
EXPLAINED INVESTING IN 2021
 3 COMPONENTS: 1) 2021 INVESTING
SITUATION
 CURRENT EARNIGNS VS PRICE
2) INDEX FUNDS
(3.77%)
RETURNS
 GROWTH ORGANIC (2%) 3) STOCK PICKING
 GROWTH INFLATION (3%) POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
 TOTAL RETURN S&P 500 = 8.77%
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RETURNS FOR THE S&P 500 INDEX FUND
EXPLAINED INVESTING IN 2021
 3 COMPONENTS: 1) 2021 INVESTING
SITUATION
 GROWTH ORGANIC (2%)
2) INDEX FUNDS
 GROWTH INFLATION (3%) RETURNS
3) STOCK PICKING
POSSIBILITIES
 TOTAL RETURN S&P 500 =
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RETURNS FOR THE S&P 500 INDEX FUND
EXPLAINED INVESTING IN 2021
 3 COMPONENTS: 1) 2021 INVESTING
SITUATION
 GROWTH ORGANIC (2%)
2) INDEX FUNDS
 GROWTH INFLATION (3%) RETURNS
3) STOCK PICKING
POSSIBILITIES
 TOTAL RETURN S&P 500 =
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 TOTAL RETURN S&P 500 = 8.77% INDEX FUND
INVESTING IN 2021
1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 TOTAL RETURN S&P 500 = 8.77% INDEX FUND
 3 COMPONENTS: INVESTING IN 2021
1) 2021 INVESTING
 CURRENT EARNIGNS VS PRICE
SITUATION
(3.77%) – lower PE ratios than 26!
2) INDEX FUNDS
 GROWTH ORGANIC (2%) – Good RETURNS
businesses with growth! 3) STOCK PICKING
 GROWTH INFLATION (3%) – Average POSSIBILITIES
pricing power 4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 TOTAL RETURN S&P 500 = 8.77%
INDEX FUND
 3 COMPONENTS:
INVESTING IN 2021
 CURRENT EARNIGNS VS PRICE (3.77%) – lower PE
1) 2021 INVESTING
ratios than 26!
SITUATION
 GROWTH ORGANIC (2%) – Good businesses with
growth! 2) INDEX FUNDS
 GROWTH INFLATION (3%) – Average pricing power RETURNS
3) STOCK PICKING
 KROGER STOCK! POSSIBILITIES
 PE = 15 = 6.5% 4) INDEX FUNDS RISKS
 GROWTH = 1%
5) STOCK PICKING
 INFLATION = 3% RISKS
 10.5%
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 TOTAL RETURN S&P 500 = 8.77%
INDEX FUND
 3 COMPONENTS:
INVESTING IN 2021
 CURRENT EARNIGNS VS PRICE (3.77%) – lower PE
1) 2021 INVESTING
ratios than 26!
SITUATION
 GROWTH ORGANIC (2%) – Good businesses with
growth! 2) INDEX FUNDS
 GROWTH INFLATION (3%) – Average pricing power RETURNS
3) STOCK PICKING
 KROGER STOCK! POSSIBILITIES
 PE = 15 = 6.5% 4) INDEX FUNDS RISKS
 GROWTH = 1%
5) STOCK PICKING
 INFLATION = 3% RISKS
 10.5%
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 INDEX FUNDS – AUTOMATIC INDEX FUND
 STOCKPICKING – NOT AUTOMATIC INVESTING IN 2021
– requires work! 1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 INDEX FUNDS – AUTOMATIC INDEX FUND
 STOCKPICKING – NOT AUTOMATIC INVESTING IN 2021
– requires work! 1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 INDEX FUNDS – AUTOMATIC INDEX FUND
 STOCKPICKING – NOT AUTOMATIC INVESTING IN 2021
– requires work! 1) 2021 INVESTING
SITUATION
 DIVIDEND S&P 500 – 1.5%
2) INDEX FUNDS
 DIVIDEND S&P 500 in 2030 3% on cost! RETURNS
3) STOCK PICKING
POSSIBILITIES
 STOCKS THAT PAY NOW 3% and 9%
4) INDEX FUNDS RISKS
in 2030!
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RISKS INDEX FUND
 Not bust, low cost, tax advantages! INVESTING IN 2021
1) 2021 INVESTING
SITUATION
 RISKS= 2) INDEX FUNDS
- RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RISKS INDEX FUND
 No bust, low cost, tax advantages! INVESTING IN 2021
1) 2021 INVESTING
SITUATION
 RISKS= 2) INDEX FUNDS
- RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RISKS INDEX FUND
 No bust, low cost, tax advantages! INVESTING IN 2021
1) 2021 INVESTING
SITUATION
 RISKS= 2) INDEX FUNDS
- SHOW LONG TERM RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RISKS INDEX FUND
 No bust, low cost, tax advantages! INVESTING IN 2021
1) 2021 INVESTING
SITUATION
 RISKS= 2) INDEX FUNDS
- SHOW LONG TERM RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RISKS INDEX FUND
 No bust, low cost, tax advantages! INVESTING IN 2021
1) 2021 INVESTING
SITUATION
 RISKS= 2) INDEX FUNDS
- SHOW LONG TERM RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
d INDEX FUND
INVESTING IN 2021
1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 STOCK EXAMPLES INDEX FUND
INVESTING IN 2021
1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 STOCK EXAMPLES INDEX FUND
INVESTING IN 2021
1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
Source: Sven Carlin – Modern Value Investing, Kenneth French Data! 6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 RISKS INDEX FUND
 No bust, low cost, tax advantages! INVESTING IN 2021
1) 2021 INVESTING
SITUATION
 RISKS= 2) INDEX FUNDS
- SHOW LONG TERM RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 BIGGEST RISK FOR BOTH INDEX FUND
STRATEGIES: INVESTING IN 2021
1) 2021 INVESTING
SITUATION

YOU 2) INDEX FUNDS

RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 BIGGEST RISK FOR BOTH INDEX FUND
STRATEGIES: INVESTING IN 2021
1) 2021 INVESTING
SITUATION

YOU 2) INDEX FUNDS

RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
STOCKPICKING VS.
INDEX FUND
INVESTING IN 2021
1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
STOCKPICKING VS.
INDEX FUND
INVESTING IN 2021
1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
INDEX FUND
INVESTING IN 2021
1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
FEAR AND GREED! POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
INDEX FUND
INVESTING IN 2021
1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
FEAR AND GREED! POSSIBILITIES

Everybody is buying 4) INDEX FUNDS RISKS

5) STOCK PICKING
Today! RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 WHAT IS BEST FOR YOU! INDEX FUND
INVESTING IN 2021
1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 WHAT IS BEST FOR YOU! INDEX FUND
 INDEX FUNDS – 5% to 10% - and that INVESTING IN 2021
is it! 1) 2021 INVESTING
SITUATION
2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 WHAT IS BEST FOR YOU! INDEX FUND
 INDEX FUNDS – 5% to 10% - and that INVESTING IN 2021
is it! 1) 2021 INVESTING
SITUATION
 KEY IS TO COMPARE TO OTHER IN
2) INDEX FUNDS
YOUR LIFE (13% credit card, 8%
RETURNS
student loan, 2.5% mortgage)
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 WHAT IS BEST FOR YOU! INDEX FUND
 STOCKS – 10% WITH GOOD INVESTING IN 2021
BUSINESSES – 20 of them for the same 1) 2021 INVESTING
risk or even less risk! (but takes time and SITUATION
learning) 2) INDEX FUNDS
RETURNS
3) STOCK PICKING
POSSIBILITIES
4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 WHAT IS BEST FOR YOU! INDEX FUND
 STOCKS – 10% WITH GOOD INVESTING IN 2021
BUSINESSES – 20 of them for the same 1) 2021 INVESTING
risk or even less risk! (but takes time and SITUATION
learning) 2) INDEX FUNDS
RETURNS
3) STOCK PICKING
 Personally I don’t like index funds POSSIBILITIES
because I always look for better long- 4) INDEX FUNDS RISKS
term investments!
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 WHAT IS BEST FOR YOU! INDEX FUND
 YOU HAVE A BUSINESS, NO TIME INVESTING IN 2021
FOR THINKING – no FUN LEARNING 1) 2021 INVESTING
– go for index funds! SITUATION
2) INDEX FUNDS
RETURNS
 YOU HAVE A PASSION FOR OWNING 3) STOCK PICKING
BUSINESSES! YOU DON’T WANT TO POSSIBILITIES
OWN CRAZY TESLA! 4) INDEX FUNDS RISKS
5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 WHAT IS BEST FOR YOU! INDEX FUND
 YOU HAVE A BUSINESS, NO TIME INVESTING IN 2021
FOR THINKING – no FUN LEARNING 1) 2021 INVESTING
– go for index funds! (possible down 50% SITUATION
- dividend 3%) 2) INDEX FUNDS
RETURNS
3) STOCK PICKING
 YOU HAVE A PASSION FOR OWNING POSSIBILITIES
BUSINESSES! YOU DON’T WANT TO 4) INDEX FUNDS RISKS
OWN CRAZY TESLA! (down 50%, ok
5) STOCK PICKING
dividend to reinvest 6 to 12%)
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!
 STOCKPICKING VS.
 WHAT IS BEST FOR YOU! INDEX FUND
 PERSONALLY THINKING – search and INVESTING IN 2021
compare, gives you the courage to do 1) 2021 INVESTING
things when others are fearful. SITUATION
2) INDEX FUNDS
RETURNS
 BUY HOUSE, INVEST, BUILD A 3) STOCK PICKING
BUSINESS, PROJECT, STOCKS – POSSIBILITIES
whatever! 4) INDEX FUNDS RISKS
 LEADS TO INCREDIBLE RESULTS! 5) STOCK PICKING
RISKS
6) CONCLUSION
(Investing must always
be about what is best for
you!