Should You Buy AAPL Before Earnings?

Should you be hitting the buy button on Nvidia, Amazon, or Alphabet right before they report earnings?

This is the most common question every earning season.

"Pete: is it safe to get into [insert your stock name here] before the earnings drop?"

My Answer? That is the wrong question to be asking. It also does not matter which ticker you are talking about.

Think about it.

When you ask that, you are essentially asking if you can outplay the MIT graduates and high-frequency algorithms of Wall Street over a tiny 24-hour window.

You might as well try to play tennis and win at the Australian Open.

Sure, you could get lucky and get the ball back over the net once. But I would rather be consistently profitable than lucky once.

The Math of the NOT INVESTING

Flip the logic for a second.

What you should really be calculating is the cost of staying on the sidelines because you are afraid of a short-term "earnings dip."

Let's look at Nvidia. There have been over 100 earnings announcements since they went public. Along the way: the stock has faced massive volatility: geopolitical trade wars: and semiconductor cycles. Yet: the return since the IPO is roughly 640,000%. That is enough to turn a $1,000 starting position into over $6.4 million today.

Consider Amazon. It has endured over 115 earnings reports and countless "market crashes." The total return? Roughly 235,000%. That same $1,000 back then would be worth about $2.35 million now.

See the point?

Investor vs. Trader

If you are a trader: that is fine.

Be a trader. The volatility from a post-earnings event is perfect for quick gains. There are plenty of tactics to set that up ahead of time.

But if you are an investor: do not kid yourself.

I honestly wish the "earnings season circus" would just go away. It creates noise that distracts people from the real goal.

Pete Investing Tip: The price of missing a generational opportunity is always higher than the cost of trying to dodge a risk you cannot control.

🚨 Join Me LIVE on 29 Jan!

We are navigating a massive week. The Fed has spoken: and major earnings are hitting the tape as we speak.

I am going live to break down exactly how to handle the FOMC fallout and share a fresh Dividend Stock Idea that serves as a prelude to my upcoming Dividend Market Genius program.

Public LIVE Webinar Topic: FOMC Outcomes: Earnings Analysis: & New Dividend Idea Time: Thursday: 29 Jan: 9:00 PM Singapore

Join the Session here: 👉 https://rebrand.ly/iwplive

Do not trade the news blindly. Come and get the plan.

See you there! 🥂

Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.