Making money from liquidated stocks can be an interesting alternative.

There are many ways to profit in the stock market, and ordinary investors only know a few. One interesting strategy I've used in the last year with good risk-reward returns is buying liquidation stocks. What is a liquidation stock? It's a stock that doesn't have a long-term objective but wants to sell its assets to be liquidated. Usually at a discount.

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This might lead us to believe that it's impossible to make money, but just as a junkyard makes money from wrecked cars, an investor can make money with stocks that have no future. An example would be the liquidation of REITs.

This investment has its advantages. The first is that management has a very clear plan, and there's little room for deviation. The timeframe is also clear since the liquidation plan is defined; it may vary, but it's defined. The value is also known, both the value of the assets and the stock price, so you know what discount you're buying at.

And that's the key: you must buy stocks with solid, liquidable assets at a steep discount, even if it's at a discount. Create three scenarios and be able to profit even with the most pessimistic one. If you achieve that, you already have a winner.

Disclaimer.

This is not a purchase recommendation. I am not a regulated financial analyst. Under no circumstances should this information be construed as a recommendation to buy, sell, or hold a position.
You should be aware of the risks involved in investing and conduct your due research.
The information described here may not be accurate or may change at any time, so you should always check it.



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