Financial markets - more accessible than ever; What must an investor do to succeed in a constantly changing market

Reporter: How long have you been investing?

Jakub Rochlitz: This is my third year managing my own portfolio, but I started learning about investments and doing analysis for my father earlier.

Reporter: Why did you decide to start investing?

Jakub Rochlitz: My father motivated me to start investing in the stock market because he wanted me to learn not only how to work and earn money but also how to manage it correctly and make it work for me.

Reporter: When did you start using eToro, and why did you choose this investment platform?

Jakub Rochlitz: I've been using eToro since I started investing. I chose eToro for several reasons, the main one being the platform's ease of use and user-friendly interface. Compared to other platforms, eToro is much more advanced in this respect. To objectively recommend eToro as the best broker to those who copy me, I have tried other brokers, but eToro has proven to be by far the best platform for young and beginner investors, in my opinion.

Reporter: Describe your investment philosophy, style, and strategy...

Jakub Rochlitz: I'll start by saying that I am a long-term, value-oriented fundamental investor. I invest in large companies with a strong financial position, solid market positioning, a strong competitive advantage, and good business prospects.

Over time, I have realized that to succeed in a constantly changing market, an investor must remain true to their principles but also be able to adapt their strategy. The market changes rapidly due to multiple factors. To achieve good results, I must be able to react quickly to what is happening.

All my investment decisions are the result of in-depth fundamental analysis of the respective company, its competitors, and its sector.

There are three types of investments in my portfolio: dividend stocks, value stocks, and growth stocks.

Dividend stocks are those I primarily hold for dividend income. They pay dividends of 8-9% and usually also fall into the value stock category.

Value stocks are those that I consider undervalued by standard valuation methods. I hold them because I believe they are not correctly valued by the market, and sooner or later, their price will return to their intrinsic value.

Growth stocks have very strong growth prospects and are usually difficult to evaluate correctly due to their strong performance. These are stocks like Nvidia, which has been "overvalued" by some parameters for a long time, but if you consider its rapid growth and future opportunities, you'll see a completely different picture.

By combining these investments, I am able to use their best features and build a portfolio with a favorable risk/return ratio that is also well diversified.

Reporter: How often do you invest?

Jakub Rochlitz: I maintain my investments for the long term. However, due to changing market conditions, I sometimes need to make adjustments. According to eToro statistics, I make about ten trades a week, which are usually small adjustments or reactions to earnings reports and other data. I believe a successful investor must be able to react quickly to the information received.

Reporter: What makes up the majority of your portfolio - crypto assets, stocks, currencies, commodities, indices, or ETFs?

Jakub Rochlitz: My entire portfolio is and has always been invested in stocks. I diversify my investments across all world economies and all sectors within these economies to reduce risk.

Reporter: How much are you currently investing in your eToro account?

Jakub Rochlitz: I invest the vast majority of my savings in my stock portfolio.

Reporter: How many followers do you have?

Jakub Rochlitz: I currently have 866 followers on eToro and 456 on Instagram.

Reporter: How many people are copying you?

Jakub Rochlitz: I have 87 people copying me.

Reporter: Are there any investors or business people you admire?

Jakub Rochlitz: Yes, Ray Dalio. Although he invests in other asset classes, his approach to creating strategy by looking for cause-effect relationships and principles that describe the world is very motivating for me. I like his worldview and his approach to seeking and sharing his wisdom. I was very fortunate to have the opportunity to meet him in person at Abu Dhabi Finance Week, where I was invited by eToro last year.

Reporter: What is your main source of financial news and information?

Jakub Rochlitz: I use various sources for different tasks. Of course, I take advantage of artificial intelligence technologies to aid my research; specifically, Perplexity. My day always starts with newspapers. I read the Wall Street Journal every morning, then usually read eToro Daily Bites and SeekingAlpha's Wall Street Breakfast on my way to university. I also read a few tech publications and CNBC's daily market coverage. Every week, I monitor earnings and economic calendars to stay updated on macroeconomic and company reports.

The most important source of information for me is earnings reports, press releases, macroeconomic reports, central bank reports, and company-specific news. Monitoring macro and micro developments is key to staying current with market changes. Earnings reports are the most important information sources, especially the transcripts of analysts' question sessions. It's important to read not only the reports of the companies in my portfolio but also those of their competitors and the companies on my "watchlist." I also get updated news from various sources like the Wall Street Journal, Reuters, and SeekingAlpha about the companies in my portfolio and on my watchlist.

In addition to conducting my research, I also review analyses from reputable banks and third-party investors. This allows me to compare my thesis with various perspectives and often leads me to dig deeper to discover which perspective is correct. Following different viewpoints is key to achieving objective results.

For extensive financial information, I use SeekingAlpha, YCharts, and SimplyWallStreet.

Reporter: Do you have hobbies or interests outside of finance?

Jakub Rochlitz: Of course! I like to work out, travel, cook, and I also enjoy art.

Reporter: What are your market outlooks for 2024, and what sectors, asset classes, and/or industries will you be following?

Jakub Rochlitz: I will definitely follow the development of AI and its impact on various industries. I am also monitoring economic developments and their impact on interest rates, assessing which companies can benefit from lower interest rates and which are at risk if they do not. I believe some companies are undervalued in the real estate and financial sectors right now, but I do not expect them to recover soon unless positive economic data emerges.

Reporter: Your thoughts on the rise of retail investors-what do you think is driving the recent boom in retail market participation?

Jakub Rochlitz: I believe financial markets are more accessible than ever, especially thanks to online brokers that allow people to invest with low capital requirements. For a long time, investments were prohibitive due to high fees and limited access to open markets. Online brokers make everything accessible, and due to their efforts in marketing and financial education, people are beginning to feel confident in investing their money in stocks.

Reporter: What investment topics do you feel confident discussing?

Jakub Rochlitz: I can talk about US or EU stocks, except for pharmaceuticals, which I generally avoid due to their unpredictable nature. I could speak about news, ways to analyze a stock, personal finance, how the financial market works, interest rates and inflation, as well as tax optimization, to name a few topics.

Reporter: How many hours a day do you dedicate to researching and monitoring the market?

Jakub Rochlitz: I spend several hours each day researching the market and monitoring my investments. One hour a day is the minimum, which would include reading the news and monitoring the market at key moments. However, there are also times when I spend the entire day at the computer doing research. The large volume of data I need to keep track of makes investing like a full-time job. This is the advantage of copy trading. To make wise investment decisions, you not only need to track things but also have a comprehensive overview of macroeconomic reports, such as inflation, GDP, interest rates, and unemployment in major economies. You have to monitor many financial reports, and it's crucial to read them when they're released to stay up-to-date with the market. It's also important to keep an eye on industry analyses and developments to have a good understanding of the competitive landscape of the companies in your portfolio. Finally, of course, you need to follow the news, as major events can and do happen at any time, and you need to react quickly.

Reporter: How would you describe your relationship with eToro?

Jakub Rochlitz: I am a Champion Popular Investor at eToro, managing over $200,000 in AUM from more than 80 investors worldwide, and I regularly participate in eToro events, such as the Popular Investor Summit in London, Abu Dhabi Finance Week, and football club events like Slavia Prague, where I was invited to one of the matches to present my portfolio.

Reporter: What is your investment goal, both short and long-term?

Jakub Rochlitz: My goal is to provide my investors with superior returns regardless of market conditions. For my personal objectives, I aim to create passive income from dividends in the long term, with a low-risk score.

Reporter: Do you have a motto you follow or any advice you adhere to? From whom?

Jakub Rochlitz: Yes, of course. It's my father's motto: "Success is no accident." I believe that to achieve extraordinary results, you have to undertake extraordinary actions.

Reporter: Tank You!