Many investors, especially beginners, are afraid to invest in the Brazilian Stock Exchange (B3) and lose money on shares. But is this fear really valid? No Chat with Specialist, live program from UOLeconomist César Esperandio answers this question.
Read his explanation and watch the program excerpt below. Chat with Specialist is a question-answer about investments exclusively for subscribers and is broadcast fortnightly, on Thursdays, from 15:00 to 16:00.
Stock appreciation is not profitability
In fixed income, says Esperandio, there is predictability of profitability.
“Whether in fixed-rate, floating-rate, inflation-linked securities, you have an idea of how much you will receive on the maturity date. In stocks, you don’t know if you will have a return”, says he, who is also from the Econoweek channel.
According to the economist, many people are mistaken for thinking that the profitability of a share is its appreciation — he bought it for R$10 and it is worth R$20.
“But that’s not it. Profitability is not this difference in share price. This is asset pricing”, he declares.
The economist says that in variable income, the profitability of a share is the distribution of results.
“When you buy a share, you become a partner in that company. And that company distributes, from time to time, part of the profit, if it has made a profit, to its shareholders”, he says.
In Brazil, profit distribution typically occurs every three months, together with the disclosure of results. “So, therefore, the profitability of a share is not predictable”, he declares.
Is it dangerous or risky to invest in stocks?
Esperandio says that investing in stocks can bring some risks:
The stock is an asset that is not protected by the FGC (Fund Garantidor de Créditos);The company may go bankrupt and, eventually, you will lose your money;The company may not distribute profit –or, on the contrary, appreciate so much and distribute income which can be much higher than fixed income profitability
It is not dangerous. You just have to know where you are investing. To do this, you must do a cool fundamental analysis, understanding what the company’s accounting and financial results are in recent times and the projections for the following periods, in which market the company is inserted, and so on. It’s a little more complex than fixed income.
Therefore, says the economist, it is recommended that investors start with fixed income, familiarize themselves with the world of investments, and then reach variable income.
“I think that the first step of the novice investor should be to start with fixed income, preferably building their emergency reserve by investing in Selic Treasury or in CBDs, LCIs and LCAs of immediate liquidity”, he says.
Chat with Specialist is fortnightly
The program Chat with Specialist is broadcast on Thursdays, fortnightly, from 3 pm to 4 pm, on the home page of UOL, at UOL Economia and UOL Investimentos, and is exclusive to subscribers. Review past programs here.
You can send questions to Papo by e-mail [email protected] —they can be answered in the program.
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