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Investing in Sony (PS5)

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sparechange

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Have no idea how stocks work, total guess work here...


Playstation #5 is coming out this fall, would it be a wise decision to dump a bit of cash into this stock? Assuming the stock will shoot up towards release?


31642

Same thing with Rockstar games, (Grand Theft Auto Creator) I'd assume when Gta 6 comes out that would shoot the market up?
 

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Martin.G

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I thought when I read the title that you want to buy the console to resell. The idea of buying stocks it is not worthy, the market have already discounted the possibles units sold, in the worse case if not sell what the analysts predicted, the stocks will probabley go down.
 

cmor16

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At the very least, research previous product release dates (PS4, PS3, PS2, Vita, etc.) and analyze the market reaction to each. I doubt you will find anything conclusive.

Don't stop with Sony either. Look at all tech companies that release highly anticipated consumer products (Apple, Google, MS, Nintendo, Tesla).

I think you'll find that market reaction usually comes on the date they announce the new product, rather than the product release date itself. Apple is the best consumer product example. Everyone goes gaga at their events when they unveil the new iPhone. It's all about the hype.
 

kelvinfernandezm

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Have no idea how stocks work, total guess work here...


Playstation #5 is coming out this fall, would it be a wise decision to dump a bit of cash into this stock? Assuming the stock will shoot up towards release?


View attachment 31642

Same thing with Rockstar games, (Grand Theft Auto Creator) I'd assume when Gta 6 comes out that would shoot the market up?
Might as well invest in computer chips manufacturer's.
 

gryfny

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When the information is out there for you, it's out there for everyone. So it's already discounted in the stock price.
 

InspireHD

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Think of this idea as the business version of money chasing. All you’re doing is looking at the money side of a business and forgetting where the value is.
Intelligent investing goes much further than just trying to get in before a product launches. Sony is known for their PlayStation consoles and so the idea of the inherent value of that brand is already mixed in with the total perceived value of the company (known as Market Capitalization).
The secret to long term investing is buying businesses at a deep discount to their intrinsic value with a margin of safety sufficient enough that even if you’re wrong, you can still make money. Intrinsic value looks at the totality of the present and future actions of the underlying business. If you could determine the true value of a business, you would unlock the holy grail of the stock market and make a lot of money.
Here is an example: Say I have a $20 bill. You want to buy my money. Today, I’m not really in the mood to sell so I’ll sell it to you for $25. Would you buy it? Probably not. You know the intrinsic value of that money is $20. You would theoretically lose money as soon as you bought it from me. However, if I was afraid that the economy was going to crash and thought it was no longer worth $20, I might sell it to you for $10. You, being the smart investor, believe the scare is overblown and that everything will turn out to be okay. My fear of the future is to your benefit. You snap up that deal instantly because you’re about to make a 100% return on your money.
Where does the margin of safety come in? Well, maybe the economy does hurt for a little bit and it didn’t really turn around as quickly as you thought it would. Now you want to sell that $20 to someone else. You go looking for a buyer and find someone who would be willing to pay $18. You make an $8 profit on your investment. Even though you didn’t make the full $10 and were effectively wrong, you still made a profit because your margin of safety was wide enough to protect you.
This is why so many people are scrambling to figure out what to buy right now because stocks have crashed so hard that there are a lot of companies trading for discounts. Now, just because a company was once $100 per share and now at $50, it doesn’t mean it’s going to go back to $100. But there is a greater probability that when the virus pandemic works itself out and the economy starts up again, those companies might go back to $75.
You won’t be able to time the market and it is often the case that the market will turn around before the economy does. It’s a good practice to buy as the market goes down to start building up a position. Think of these businesses as going on sale. If you are a long term investor, then you should like when prices go down.
So, is Sony worth a buy right now? I don’t know. I haven’t looked at it, but the decision is more complex than just trying to buy now before the PS5 is released and thinking it’ll go up. What if it’s a total flop and kills the brand? The market might not like it and start dumping shares. Sometimes there is no rhyme or reason for what the market does. Good news can make the market go down and bad news can make it go up. Over the long term, though, the market will work out the true value of the company.
Think of the stock market like a market of businesses and not just imaginary paper. You are literally becoming part owner of a company when you buy their shares. A small investment means a tiny fraction of the company, but if you had a significant amount of money such that you could buy every share, you would become the owner of that company. It happens all the time and is a big strategy for an investor like Warren Buffett. He makes deals in a way that he becomes the majority owner of businesses that are trading on the stock market.
This is why I love the stock market and the power it holds. Anybody can do it but a lot of people think it’s a gamble because they don’t understand it.
There is a lot more that goes into it as well but it’s probably beyond the scope of this post attempting to answer your question.
Also, sorry if there are any formatting errors or misspellings. I’m at work and typing this on my phone. Let me know if you have any other questions.
 
OP
OP
sparechange

sparechange

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At the very least, research previous product release dates (PS4, PS3, PS2, Vita, etc.) and analyze the market reaction to each. I doubt you will find anything conclusive.

Don't stop with Sony either. Look at all tech companies that release highly anticipated consumer products (Apple, Google, MS, Nintendo, Tesla).

I think you'll find that market reaction usually comes on the date they announce the new product, rather than the product release date itself. Apple is the best consumer product example. Everyone goes gaga at their events when they unveil the new iPhone. It's all about the hype.
Neat idea so I gave this a try.

31648

released in Japan on March 4, 2000, in North America on October 26, 2000, and in Europe and Australia on November 24, 2000, and is the successor to the original PlayStation, as well as the second installment in the PlayStation console line-up


31649

November 11, 2006


PlayStation 3 was first released in Japan on November 11, 2006, at 07:00. According to Media Create, 81,639 PS3 systems were sold within 24 hours of its introduction in Japan. Soon after its release in Japan, PS3 was released in North America on November 17, 2006

31650
31651

The console was released on November 15, 2013, in the United States and Canada, followed by further releases on November 29, 2013. By the end of 2013, the PS4 was launched in more European, Asian and South American countries.


31652

hmmmm
 
OP
OP
sparechange

sparechange

Gold Contributor
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Nov 11, 2016
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Think of this idea as the business version of money chasing. All you’re doing is looking at the money side of a business and forgetting where the value is.
Intelligent investing goes much further than just trying to get in before a product launches. Sony is known for their PlayStation consoles and so the idea of the inherent value of that brand is already mixed in with the total perceived value of the company (known as Market Capitalization).
The secret to long term investing is buying businesses at a deep discount to their intrinsic value with a margin of safety sufficient enough that even if you’re wrong, you can still make money. Intrinsic value looks at the totality of the present and future actions of the underlying business. If you could determine the true value of a business, you would unlock the holy grail of the stock market and make a lot of money.
Here is an example: Say I have a $20 bill. You want to buy my money. Today, I’m not really in the mood to sell so I’ll sell it to you for $25. Would you buy it? Probably not. You know the intrinsic value of that money is $20. You would theoretically lose money as soon as you bought it from me. However, if I was afraid that the economy was going to crash and thought it was no longer worth $20, I might sell it to you for $10. You, being the smart investor, believe the scare is overblown and that everything will turn out to be okay. My fear of the future is to your benefit. You snap up that deal instantly because you’re about to make a 100% return on your money.
Where does the margin of safety come in? Well, maybe the economy does hurt for a little bit and it didn’t really turn around as quickly as you thought it would. Now you want to sell that $20 to someone else. You go looking for a buyer and find someone who would be willing to pay $18. You make an $8 profit on your investment. Even though you didn’t make the full $10 and were effectively wrong, you still made a profit because your margin of safety was wide enough to protect you.
This is why so many people are scrambling to figure out what to buy right now because stocks have crashed so hard that there are a lot of companies trading for discounts. Now, just because a company was once $100 per share and now at $50, it doesn’t mean it’s going to go back to $100. But there is a greater probability that when the virus pandemic works itself out and the economy starts up again, those companies might go back to $75.
You won’t be able to time the market and it is often the case that the market will turn around before the economy does. It’s a good practice to buy as the market goes down to start building up a position. Think of these businesses as going on sale. If you are a long term investor, then you should like when prices go down.
So, is Sony worth a buy right now? I don’t know. I haven’t looked at it, but the decision is more complex than just trying to buy now before the PS5 is released and thinking it’ll go up. What if it’s a total flop and kills the brand? The market might not like it and start dumping shares. Sometimes there is no rhyme or reason for what the market does. Good news can make the market go down and bad news can make it go up. Over the long term, though, the market will work out the true value of the company.
Think of the stock market like a market of businesses and not just imaginary paper. You are literally becoming part owner of a company when you buy their shares. A small investment means a tiny fraction of the company, but if you had a significant amount of money such that you could buy every share, you would become the owner of that company. It happens all the time and is a big strategy for an investor like Warren Buffett. He makes deals in a way that he becomes the majority owner of businesses that are trading on the stock market.
This is why I love the stock market and the power it holds. Anybody can do it but a lot of people think it’s a gamble because they don’t understand it.
There is a lot more that goes into it as well but it’s probably beyond the scope of this post attempting to answer your question.
Also, sorry if there are any formatting errors or misspellings. I’m at work and typing this on my phone. Let me know if you have any other questions.
Great post
 

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DavidIonesi

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Think of this idea as the business version of money chasing. All you’re doing is looking at the money side of a business and forgetting where the value is.
Hello good sir! You seem to know a few things about investing, I'm currently a follower of Chris Macintosh and his team from CapitalistExploits. What sources of info do you recommend? Can you shoot me a P.M. ? I would love to continue the discussion with you from there if you have some time :)
 

biophase

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Neat idea so I gave this a try.

View attachment 31648

released in Japan on March 4, 2000, in North America on October 26, 2000, and in Europe and Australia on November 24, 2000, and is the successor to the original PlayStation, as well as the second installment in the PlayStation console line-up


View attachment 31649

November 11, 2006


PlayStation 3 was first released in Japan on November 11, 2006, at 07:00. According to Media Create, 81,639 PS3 systems were sold within 24 hours of its introduction in Japan. Soon after its release in Japan, PS3 was released in North America on November 17, 2006

View attachment 31650
View attachment 31651

The console was released on November 15, 2013, in the United States and Canada, followed by further releases on November 29, 2013. By the end of 2013, the PS4 was launched in more European, Asian and South American countries.


View attachment 31652

hmmmm
So what did you conclude.

Also, I think you can shrink those graphs into tighter timelines. I couldn't tell what your graphs were saying because of they spanned 10 years.
 
OP
OP
sparechange

sparechange

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So what did you conclude.

Also, I think you can shrink those graphs into tighter timelines. I couldn't tell what your graphs were saying because of they spanned 10 years.
So what did you conclude.

Also, I think you can shrink those graphs into tighter timelines. I couldn't tell what your graphs were saying because of they spanned 10 years.


31658

Alright so I looked into it a little bit more and maybe my guess (yes a guess) I don't know anything about the markets.

Stocks can go up and down like a toilet seat but overtime a great company slowly grows overtime.

So looking at the release date for Playstation 2 (March 4th in the year 2000) I looked at the price to buy a piece of the company in 1999.

During the release announcement.
March 1, 1999 Sony announced the PlayStation 2 (PS2) on March 1, 1999. The price was sitting at
Mar 05, 199941.00

Mar 10, 2000124.13


31664

So I mean, perhaps it could be a nice investment? Granted history repeats itself. @cmor16 ??????
 

S.Y.

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View attachment 31658

Alright so I looked into it a little bit more and maybe my guess (yes a guess) I don't know anything about the markets.

Stocks can go up and down like a toilet seat but overtime a great company slowly grows overtime.

So looking at the release date for Playstation 2 (March 4th in the year 2000) I looked at the price to buy a piece of the company in 1999.

During the release announcement.
March 1, 1999 Sony announced the PlayStation 2 (PS2) on March 1, 1999. The price was sitting at
Mar 05, 199941.00

Mar 10, 2000124.13


View attachment 31664

So I mean, perhaps it could be a nice investment? Granted history repeats itself. @cmor16 ??????
Markets were much more different than back then than now. I would look at more recent consols release to judge the effect on price.

That's said, if you buy sony just because of the ps5, I will suggest reconsidering it. Sony does more than the gaming console. Unless you are purely gambling.
 

biophase

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View attachment 31658

Alright so I looked into it a little bit more and maybe my guess (yes a guess) I don't know anything about the markets.

Stocks can go up and down like a toilet seat but overtime a great company slowly grows overtime.

So looking at the release date for Playstation 2 (March 4th in the year 2000) I looked at the price to buy a piece of the company in 1999.

During the release announcement.
March 1, 1999 Sony announced the PlayStation 2 (PS2) on March 1, 1999. The price was sitting at
Mar 05, 199941.00

Mar 10, 2000124.13


View attachment 31664

So I mean, perhaps it could be a nice investment? Granted history repeats itself. @cmor16 ??????
Here is my analysis. When the PS1 came out it was a game changer. The market didn't expect that so it did not price that in. That's why you saw the spike. For PS2, PS3, etc... everyone is expecting it so the amount is built in.

It's like Apple before the first Iphone. The market didn't build that into the price because it was unknown. But once it was a success, the launch of Iphone 2, 3, 4, 5 etc.. were all built into the prices before the launch dates. I suspect you will see the same reaction stock price wise.
 

QuantumLeap

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Might as well invest in computer chips manufacturer's.
But not AMD though they have the most insane P/E ratio I've ever seen in all my years investing.

Edit since you're a newbie in the stock market I will explain what a P/E ratio is.
It is basically the Price / earnings ratio so basically market cap/ profit
 

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