2 actions in Great Britain, which I avoid at all costs

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I am a great supporter of action in Great Britain, but not every actions are equal. According to Warren Buffetta, the first and most vital principle of investing is to avoid losing money.

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You don’t have to lose to win first. Here are some actions in Great Britain, from which I want to stay away to try to protect my finances.

Aston Martin

Even the most bullish Aston Martin Lagonda (LSE: AML) The shareholder must accept that there is an above average chance to lose money. The company went bankrupt seven times.

The company has a really iconic brand, which is a huge advantage. But for some reason, the company does not seem to be able to earn any money – and this comes to the core of investing.

The company collects cash by emitting shares and debt. And then it is burned by this cash in the industry with high capital requirements.

What Aston Martin really needs is a sturdy economic recovery in China – one of the most vital markets. And there If Causes of optimism on this front.

However, even for investors who have a stubborn view on China, I think there may be better opportunities. In the case of Aston Martin, it is tough for me to see what justifies the value of an enterprise with a value of almost 2 billion pounds.

The company expected that in 2024 it would be positive for free cash flows, but this has not yet materialized. Given the record of a company that is to be caught, it looks too risky to me.

Wizz Air

I read it at the beginning of this month Wizz Air Holdings (LSE: Wizz) was one of the most compact actions in Great Britain. The bolder investor than I was against it, but I don’t like stocks.

The company has recently undergone a (unchanging) immense strategic change. Where he wanted to offer affordable tariffs in the Middle East before, now he has returned to focus on Europe.

There are reasons to like the change. Keeping a affordable service during flights with long hauls will always be tough, because it is impossible to generate time for additional flights with quick returns.

The problem is that returning to Europe puts him in direct competition with such as such Easyjet AND Ryanair. And I think Wizz will be tough to stand out from these carriers.

Wizz really needs consolidation throughout the industry. This would cause lower competition and better margins for other participants.

CEO of Ryanair Michael O’Leary believes that this is likely and that this will require the purchase of Wizz. This should be a substantial worry for compact sellers, but this is not the reason why I even thought about buying shares.

Avoiding losses

I don’t buy shares most of the time, because the likely return is simply not high enough. I am convinced that the company will develop, but it is not enough to justify the current price of the shares.

Both Aston Martin and Wizz the situation is much worse than this. I see it, there is a real chance for investors to actively lose money.

As a result, I stay away from both. On the British market, which in my opinion is full of possibilities, investors should walk around these actions very carefully.

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