Comparison: The First and Most Important Step in Investing
There's no perfect answer to "Which stock is better?" But we can find answers to "Which stock is more suitable for me?" The journey to that answer is through comparison. Through comparison, we can clearly identify each stock's strengths and weaknesses, making rational data-driven decisions rather than decisions based on vague expectations.
Bebooja DataLab's comparison charts don't just show returns. We provide multi-dimensional data including volatility, dividends, and various financial metrics to help you discover hidden value and risks in securities. 글로벌 주식시장에서 미국이 46.2%를 차지하는 상황에서, 투자자들은 더욱 신중하고 체계적인 분석이 필요합니다.
1. Price Performance & Total Return
What are we comparing? Shows how much stock prices have risen or fallen over specific periods. Total return is the concept of 'total return' that includes dividend income, which is a key indicator to check when comparing dividend stocks or dividend ETFs.
Why should we compare? While past returns don't guarantee future performance, they serve as the most basic measure to gauge how assets have reacted to market conditions and their growth potential.
How should we interpret this? Rather than focusing on short-term returns, it's important to compare long-term returns over 1, 3, 5+ years and check for consistent upward trends. Additionally, examining how much stocks fell during market crashes and how long they took to recover (maximum drawdown, MDD) helps assess the 'resilience' or stability of stocks.
2. Volatility & Sharpe Ratio
What are we comparing? Volatility indicates how unpredictable and dramatic stock price movements are. The Sharpe ratio is a 'cost-effectiveness' indicator showing 'how much higher return was achieved relative to the risk taken.'
Why should we compare? Blindly chasing high returns can lead to walking on thin ice. If the same return is achieved with lower volatility, it's a much more stable and superior investment. This is an essential indicator for understanding whether your investment style seeks stability or desires high returns despite high risks, and selecting stocks accordingly.
How should we interpret this? Lower volatility numbers mean more stable stock price movements. Higher Sharpe ratios are better. When comparing multiple stocks with similar returns, those with lower volatility and higher Sharpe ratios are generally better investment alternatives.
3. Dividend
What are we comparing? Dividend Yield shows how much dividend is paid relative to the current stock price, while Dividend Growth shows how consistently dividends have increased over time.
Why should we compare? Dividends act as a cushion to defend against losses when stock prices fall and provide the strength to continue long-term investing by generating steady cash flow. This is as important as returns for investors preparing for retirement or prioritizing stable cash flow.
How should we interpret this? Rather than simply looking at stocks with high current dividend yields, you must check if they have a history of 'dividend growth' - consistently increasing dividends over years. This is strong evidence that the company's profits are growing stably and has a strong commitment to returning profits to shareholders.
Beyond Numbers: Building Your Own Investment Philosophy
Data is an excellent tool, but the final decision ultimately rests with you. Successful investing doesn't end with picking good stocks. You must be able to clearly explain why you're investing in a particular stock and have your own principles to stick to your original plan without being swayed by market volatility.
Ask yourself:
- —What are my goals? (e.g., children's education fund in 10 years, retirement fund in 20 years)
- —How much loss can I handle? (e.g., -10% is okay, but -30% is frightening)
- —How long can I invest? (e.g., 3 years short-term, 10+ years long-term)
Answer these questions first, then find stocks that meet your criteria through data comparison. Bebooja DataLab will serve as a reliable compass for your wise and successful investment journey.