How to Beat the Stock Markets

Although the structure of financial markets is efficient and allows the purchase and sale of multiple financial instruments, meeting the needs of those involved (investors who want to obtain returns on capital, and entrepreneurs and government representatives, who aspire to obtain financial resources for their operations and projects), in practice, investments do not always give the expected returns, and there are multiple risks of default, insolvency and illiquidity, in any organization (public or private).

Therefore, the best way to obtain returns on investments is applying an appropriate method and considering that the prices of corporate stocks depend on: a) expectations of investors, b) valuation of companies, c) production capacity of corporations, d) performance of management, e) influence of favorable and adverse events, and f) hidden risks. It is also important to buy company stocks at the right time, and know when to sell them (which is critical when making short-term investments).

In that sense, taking into account two different styles (conservative of Warren Buffett and liberal of Cathie Wood) and the strategies of successful investors (in the short or medium and long-term), in this book, a method to defeat the stock markets is developed...