Which stocks are the most promising in 2019?
At the beginning of the year, many investors wonder how they can really make a lot of returns this year. There are several approaches to finding the most profitable stocks, but each model has a crux.
Dhat is the question of all questions in the stock market. There are different approaches: One looks for undervalued stocks. After the nasty stock year 2018, some stocks are pretty cheap. This is measured by the ratio of the price to the expected company profit (P / E). Accordingly, one would have to buy the shares of Covestro, Lufthansa, VW, Daimler and BMW in the Dax, and Pro Sieben, Schaeffler and Siltronic in the M-Dax. They are all very inexpensive with P / E ratios of 5 to 7.
Another approach looks at the expected dividends. RWE, Daimler, BMW and BASF are ahead in the Dax. The dividend payment can be expected here with a yield of 5 to 7 percent. A third variant favors companies whose profits are developing particularly well. Vonovia, Wirecard and Allianz are the strongest in the Dax.
The crux of all models: the future is uncertain. The expected profits and dividends are just expected. In most years the DAX companies were able to exceed expectations, in some it was different. Legendary American investor Warren Buffett has a simpler approach. He buys papers from companies whose business model he understands and which he considers to be a reliable profit provider in the long term due to a strong market position. Coca-Cola, for example. Or Kraft Heinz ketchup. Or Apple. Or visa. Even this strategy does not always bring profits. But mostly: She made Buffett a multi-billionaire. I wish you success!