According to Elon Musk", Since I’ve been asked a lot: I will always advise, we buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.

@stansburyclarice4968

2 жыл бұрын

My advice to new investors: Buy good companies stocks and hold them as long as they are good companies. Just do this and ignore the forecasts and market views which are at best entertaining but completely useless

@candideharrison5568

2 жыл бұрын

The key to big returns is not big moving stocks. It's managing risk in relationship to reward. Having the correct size on and turning your edge as many times as necessary to reach your goal. That holds true from long term investing to day trading

@susannabruemmer3683

2 жыл бұрын

TERESA JENSEN WHITE, That's whom i work with

@IamAWESOME3980

2 ай бұрын

Companies making good products does not mean they are a good price. IPhone is a good phone. Would you pay 10 million dollars for it? Conversely a chinese phone is nowhere as good but it is functional at a faction of the price. Same logic applies to stocks. High valuation means less return even if growth is high. Low valuation but with decent growth is still better return than the first case

Hi swedish investor, I must say because of you I have been able to make some good money for me and my little girl. I really appreciate the value I get from this channel. My name is Steve from Cameroon. I have watched and summarized 70 of your videos and wanna make sure my little girl read all about value investing. Our love❤ goes to you.

Thanks a lot Erik! Outstanding as always! I really love the way you give us all this information in a simple and understandable way! 🍀✌🏻👏🏻

This is not accurate imo. Active investors rarely do beat the market, and I'm pretty sure your audience is not composed of warren buffetts. Stock picking is not a generally sound idea, unless you can actually become an active manager at the level of Buffett. This is easier said than done, as there are studies showing that the probability of not being a great active manager are far greater. Most active managers underperform the market. Someone making six figures and looking for financial independence with as little effort as possible and as much probability of making it as possible should really just try to capture the market risk with a cap weighted world etf and at most balance for factors like value and momentum if they really want to minmax.

@TheSwedishInvestor

2 жыл бұрын

Hey Czghk Ipyter! I'm not going to say that overperforming the market is easy, but it is a lot easier for a smaller investor than for someone who is managing a ton of money at a fund. It's terribly difficult to perform like a Warren Buffett, but that's not required to beat the market. Anyway, this video was primarily about earnings, but I'm definitely camp "it is possible to beat the market" :)

@superluminal54

2 жыл бұрын

Very well said! Unfortunately, the truth of the matter is that most of us are far better off simply buying the entire market via a low cost passive fund. The vast majority of us will not be able to consistently beat the market and I think it’s misleading to suggest otherwise.

Moral hazard - the fed is not on anyone's side other than with entrenched special interests - blame Jekyll island. Diversification is one of the very few ways to stay on the green zone right now My portfolio is up 14% and I'm doing just fine. It's a much better deal than letting it sit in savings or checking earning near 0-1% interest.

@theexpendables3152

2 жыл бұрын

Well up at 14% in this present market in actually impressive. I was wondering if investing in a cumulative ETF during this next decade is ok. Or is it better to invest in a distributing ETF (even considering taxes)?

@virgilhall6866

2 жыл бұрын

@@theexpendables3152 ETFs are cool. I have my funds across a number of securities, it's pretty much diversified. You should use algorithmic trading; copy a licensed person more so one with experience of the past bear markets. I copy a chartered financial analyst Josephine Guevara Laporte. Been quite consistent.

@theexpendables3152

2 жыл бұрын

​@@virgilhall6866 Do you just give out funds? What are the commissions and fees for such services?

@virgilhall6866

2 жыл бұрын

@@theexpendables3152 Nah, your money stays in your account. That's the ideal for this system. You can as well opt out anytime, just like Etoro or Collective 2. Go check out this lady and get in touch if you need help with this crazy market.

@George-hl7jf

2 жыл бұрын

Josephine Guevara Laporte's official website shows she's got some impressive records and she's regulated. Can one rely on that? A lot of these guys often claim what they are not. Just saying

This video was interesting and made me think. But to say the conventional wisdom of investing in index funds when young is "terrible advice" is simply false. It's good advice for the vast majority of people. It may be better for someone that has desire to be a stock picker and outperform to learn from their mistakes. But the vast majority of people should not attempt this and will end up worse off for it.

@larryjones9773

2 жыл бұрын

@Madolite 98% of professional investors fail to beat their 'appropriate' benchmark. To propose that the 'average Joe' should be investing in individual stocks, is completely nuts. p.s. Mutual fund companies publish fake 'growth of $10,000 charts'. i.e. they don't use 'appropriate' benchmarks....they always make sure their fund is the top line on the graph.

@lmy2366

Жыл бұрын

What do you think makes up an index? Overvalued, overbought, blue chip behemoths likely to grow at 8% on average over the next two decades. Investors would be better off investigating the fundamentals of a business and the price at which they pay for said business. And always remember that your a partner in a firm, not a lottery ticket holder.

@patrickgerard8011

Жыл бұрын

Bang on!

@ferencaltrichter1423

8 ай бұрын

​@@lmy2366..and that's why you are better off investing your time in your main income stream (your carreer) instead of dabbling in stocks... (I'm just playing Devil's advocate) off course if your carreer is stock-picking related just dó that...

The best strategy is to diversify among many great companies……not sectors or asset classes for the sake of lowering “risk” but inherently lowering growth. If you can find multiple companies who have great moat, high profit margins, consistent revenue growth and high ROE and ROIC then you’ll be fine and find you’ll be able to consistently compound at high rates of return for a long period of time while mitigating risk as if one has a material change, black swan event or significant downturn you have enough that are unaffected and their gains will make up for a large single stock drop off.

I actually disagree with the part about diversification not being needed when young vs future income. Being diversified (via a global fund) enables the compounding snowball to really take hold, which is why the earlier you start, the better. (Risking this start date by not being diversified may have devastating effects in 50 years time).

@cirodirosa6752

2 жыл бұрын

This is the right approach. the market is dropping as a whole right now. if a person doesn't understand and loses on the whole index. they will be traumatized. learn with small money first.

@TheEmolano

3 ай бұрын

Good point, someone starting should go the safer route and then start to take riskier approaches as their portfolio is growing.

Not everyone can learn. “It is surprising just how resistant to learning some people are” - Charlie Munger

@nickhowyy

9 ай бұрын

That was deep

Great video, thank you! I totally agree.

Can you please do Evan blekers net net stock strategy?

nice... How to make that anime? I love it

Respectfully, I'll push back a little on your conclusions. Here's my arguments: 1st, losing your capital early on means that loss is going to compound. 2nd, opportunity cost: because of compound interest, it is very difficult to beat the version of yourself who works more to earn more money for an index fund instead of allocating more time early on to selecting better stocks. 3rd, knowing what you don't know takes longer and is more expensive than learning to select "better stocks". Diversification early on means you protect your capacity to keep learning. 4th, you need to beat a mutual fund called Berkshire Hathaway.

Such a valuable video! Thank you!! 🙏

Thank you, now I'm in 2% :-)

🤔Your calculations assume a savings-rate of 100% and you also show the average net wealth for individuals of individuals

I got a really clear view for this video, do thanks.

I came here to learn how to trade after listening to a guy on radio talk about the importance of investing and how he made $460,000 in 4 months from $100k. Somehow this video has helped shed light on some things, but I'm confused, I'm a newbie and I'm open to ideas.

@leoryruth903

Жыл бұрын

@@gerradeanderson2204 Interesting. I've a huge sum of money doing absolutely nothing at all in my bank account, i wanna gets something started with it. You seem to be doing excellent for yourself, how do you achieve this?

@jameswashington5774

Жыл бұрын

I invest with Mrs Nora too, she charges a 20% commission on profit made after every trading session and that's fair compared to the effort she puts in to make huge profits.

@mavisscott2057

Жыл бұрын

She is genuine, a lot of people who don't know her or those that haven't traded with her would say otherwise but the honest truth is that she has helped more people read than i can count and that has to stand for something.

@leoryruth903

Жыл бұрын

@@gerradeanderson2204 Please 🙏how do i get in touch with Nora Hendrix? i would love to trade with her.

@jerryflecther17

Жыл бұрын

I have traded with a lot of individuals but I have never come across anyone as good as Mrs Nora, she is the best I'd advise any novice in investing to trade with her.

hey i am 14 and istarted early. can someone tell me how to meet warren buffett.

Hey man, nice! I did practice this myself and at 38 with close to 25 years of experience I finally do beat the market. I want to ask about Swedish match. I first heard it from you and it is a marvel. What is the word in Sweden? I hope it doesn’t get bought out of the market.

I like Howard Marks and Charlie Munger's comments on this topic the most. Howard Marks said "it's not what you buy but what you buy it for and how much you can lose." I think it's magic with numbers to a degree because you can't fully quantify risk, hence one of the reasons Charlie and Warren don't use WACC. They prioritize understanding qualitative risk related to moats. Even if a recession were to rock the US once again it would take a soft drink company at max sales 100 years to reach Coca Cola's market share. You can see that Warren and Charlie have figured out to a degree what you're speaking of in this video through creating income. The difference is that they create it through stable dividend appreciating companies with moats to protect their income stream. This way the dividend acts as a hedge against whatever loss they can "assume", Because there is no 100% accurate intrinsic value.

har du en svensk kanal?

Tjena, jag har kollat på dina videor jättelänge nu och älskar dina animationer, vad är det för program du använder för att göra dina videor?

I like you videos and their themes but you are as wrong as it gets on this one. 1. If you are a stock picker you first want to accumulate a significant amount of capital to invest, and take on learning before investing. You swing only when it is a no brainer and you swing big, that is how you make large profits off of stock picking. If you are not willing to do it you will not beat the averages. Munger said to accumulate 100k dollars first and then go stock picking but whether that amount is appropriate for everyone is up for debate. 2. If you are a S&P 500 DCA investor you are going to do the average and you need to start as soon as possible to give time for the compounding of interest to accumulate, your average returns will outperform the 3,5% raise year after year. If we assume the time horizon is 40 years you will put only about 1,2% of your investment in during the first year but that same first year investment will represent almost 6,5% of your capital at the end of the 40 year time horizon.

I think that concentration is a better option if u go deep on a couple of companies and keep doing it constantly… it could hypothetically return more than a diversification strategy which can be 20 or more companies… at the end of the day it just depends on the person… wither it’s their first time, money,confidence, etc… no one can exactly predict the market every time so both strategies have their ups and downs

@GoodwalkSpoiled

5 ай бұрын

Use the core-satellite strategy. Put 50-60% in 5 or 6 stocks, and then keep the remainder in 10 to 20 different stocks. Best of both worlds - concentration and diversification.

It irritates me when Cuban and Munger say “diversification is for idiots” smugly. They’re not giving any context. The answer is, it depends. If you buy Tesla stock, all you can do is cross your fingers and hope Elon hits it out the ballpark. You have no control of that investment. Do you sit on the board of directors in a company and actively make decisions within that company? No? Then you need to diversify. Cuban and Munger are active investors who have control of their investments. They don’t need to diversify. But retail investors do. CONTROL is the key word here.

Thank you 😊 always for your great content 🙌🙌🙌

I have about 40 different stocks and ETFs that pay dividends over 10%. Some pay almost 20%. I’m retired at age 57 and live off the cash flow from the dividends. I don’t have to work. That’s the whole idea.

I love your videos. This one has given me a new perspective. On the other hand, I think when you make the pie chart with your current portfolio plus your future earnings that is not a fair comparison. I think it should be your current portfolio plus your future SAVINGS. The points of other cash flows and keeping healthy are good pearls of wisdom 👍

I've been enjoying your videos for several years, thanks! But this is not one of these, very sorry to say: Salary/income is not an asset, it is... income. If you want, you can see the job as the asset that generates the income, but I wouldn't even go so far. The video assumes that a 20 something wants to learn to invest (probably not an unreasonable assumption for your regular viewer, but still). Unless they are really interested in investing, I would suggest they just invest in an index fund and spend their time learning something they enjoy.

I would also add that having a job and an income is akin to holding a big bond, that pays you your salary, or the savings you make, you decide. Either way this paves the way to add equities massively!

Well explained

Really appreciate how you're talking abount the S&P 500 index after the comment I posted on your third last video :)

Great video about at subject that I have not seen touched before on KZread! As Warren Buffet says: "The more you learn, the more you will earn".

You should have made one of things you mentioned as an important step of it's own: "Dont invest more than you can afford to lose". So important, because it completely affects your future investor mindset and decisions.

brilliant video as always 👍👍

Thank you. As always a great video. But this one changed my perspective in particular.

If you are not an Buy & HOPER, you can easily stay with 3-5 Companies. You just have to KNOW what you are doing, stay UP TO DATE, and if you are sometimes wrong, then have the BALLS and SELL (Cut your Loses).

If you own just a few stocks they had better be low debt, large, growing companies or monopoly style companies like Moodys. If you own a group of net-nets then you want to own at least 20 of them. The lower the quality of what you own, the more diversified you need to be.

When have wages actually risen against inflation in the last 30 years?? Inflation has averaged 2.5% a year while wage increases average about 1.5%

Haha va coolt! Jag köpte oxå Tethys precis när jag började lära mig om börs och bolag 🤠

salary increase by 3.5, guess this isn't for health care workers lol.

I put all my eggs in one basket. But the basket it automatically diversified. (S&P 500). Worked out great for me so far.

that snake and machine gun was funny as hell :D

But what if when the investment corpus crosses the salary ? The salary rise has limited growth but not the investments and savings. Focusing on earning is great but that should not be preferred at all the ages.

@TheSwedishInvestor

2 жыл бұрын

Tejas Joshi it's a good point! This video mostly applies to the younger investor and/or the investor who has a quite small amount saved compared to his/her future expected salary.

@tsjoshi

2 жыл бұрын

@Madolite Even to understand the corerlation and when to rebalance also needs some kind of study from a person. In one of the videos of Warren Buffett, he mentioned, "Diversification is protection against ignorance." If a person doesn't know anything about the investment, the best way to protect against this is diversification.

Very great

Even most hege fund managers can't beat the SP 500. What made you think you or anyone can with a bit of learning?

@uncreativename9936

5 ай бұрын

This is something warren buffet's talked about many times. It's more difficult to beat the market when you're managing more money because you can't buy smaller companies without manipulating it's price, so you're forced into only buying large companies that are analyzed by thousands of people. The best gains are in small companies because they're starting out at the lowest price level and as a small investor you can invest in these without manipulating their price. I'd recommend reading Benjamin Graham's "The Intelligent Investor". He talks about how to manage both defensive and aggressive investing. Even his points about defensive investing are much better than what a lot of people on youtube parrot.

@brkctrl

Ай бұрын

Hedge fund managers entire job depends on buying and selling stocks to keep clients. A regular investor who buy good stocks and holds on to it has a better chance of success because they wouldn’t be constantly buying and selling new stocks.

Excellent point

Safety is not the only reason for diversification when you're young and unexperienced. It's not all about eggs in many baskets vs few eggs in one basket you watch. It's about choosing the eggs in the first place. Stock picking is almost 90% bullshit. Even professionals can't tell for sure what individual stocks will outperform... or simply perform. So-called active investors are 50 to 90% passively investing in ETFs and the rest in "conviction" stocks that are often crowd-minded choices or window dressing. And those guys are actually paid fulltime to read boring financial statements etc. If the markets are really efficient, no investor can outperform the market as a whole by stockpicking, unless they spend an insane amount of time (and money) on research, which can be seen as a waste. If you go all-in on one specific stock, you'll certainly miss the market global performance, whereas nothing prevented you to spread your investment on the entire market through ETFs.

Thank you!

Not sure if the narrator is Indian.

Lets ask LUNA holders what do they think...

Diversification is key factor when investing in anything

That's why I diversify my salary by doing 5 Minijobs instead of 1 fulltime 👌🏻👌🏻👌🏻

It does ignore the compounding effect where starting early with index funds to get that process started can make a great difference compared to losing money for a couple of years.

@Adrik808

2 жыл бұрын

Just do both

Thanks great video

This is yet another comment that nobody will read. I'm focused on saying something different than everybody else, contributing to the discussion in the strongest way possible. Then, I'm showing an example, to prove my thesis that nobody will truly analyze and will only gather responses and likes from people who very strongly agree or disagree with me. Afterwards, I'm saying that I hope this helps.

Gandolf keeps us all honest 🤣🤣🖤

Interesting video! I’ve recently been looking at the diversification of my portfolio more critically. The current macroeconomic environment has created some extremely attractive investments on a risk/reward basis. But with a somewhat over-diversified portfolio it seems impossible to get enough exposure to an obvious deal. As Warren Buffett has said in the past, opportunities come along where you would be foolish to only have x% of your portfolio in an investment. As portfolios grow in size, this problem only becomes worse as establishing a reasonable stake in an obvious investment (without selling your other positions) requires more and more inbound capital, thus the consequences of scale and over-diversification feed off each other. However, if you are extremely critical about your investment decisions, the likelihood of better opportunities than what you currently hold is decreased. If you only hold the 10 best businesses, Your criteria for adding an 11th is more stringent than of you hold a bag of 500 mixed businesses and want to add a 501st. This is because it easy for the 501st to be a better investment than a reasonable portion of the 500 you already hold but difficult for the 11th business to be better than the 10 best investments you already hold. So even at scale, less inbound capital is needed for good deals because you already hold better deals.

Thx 🙏🇺🇦

Plz Do summary of Principle changing the world order by ray dalio.

Great video 👍, You recently made video on investing for growth by Terry Smith, his other book accounting for growth is a good one to read too!!!

Do not forget rule no. 1!

🧐🤔📝 🚶🏾‍♂️

Good video but you miss one thing. Not everyone wants to learn about investing. Maybe most people here do but not the average person. Theyre better off being a dummy and buying the S&P500. Also maybe people can diversify diversification by putting half in index funds and the other half in selected stocks to learn.

I think a lot of people in the comments are missing the point. Charlie Munger said it best when saying diversification is for the know nothing investor. The conventional investing advice of buying into an index fund when young and allocating $x a month is conventional advice because it can be done by anyone, regardless of knowledge or experience level. This is why Warren constantly tells people to buy and hold an index fund, he’s giving you advice that will work regardless of your investing IQ. If he gave more advanced advice, people unprepared to hear it would lose money and blame him for it. Even at his barebones level of advice, people find a way to screw it up. If you could inverse all the people buying into highly speculative investments while quoting Buffetts “greedy when others are fearful”, you’d get rich very quickly. Furthermore, if you only plan to follow 0 IQ investing advice of dollar cost averaging into an index fund over 50 years, you are wasting your time by learning anything further about investing. I suppose you could think of yourself as a more “sophisticated investor” but if you aren’t being sophisticated in your investments it’s purely an ego trip. Alternatively, if you intend to learn about investing intelligently so you can do so, it makes sense to focus on learning experiences while young. Both through investing within the market and “investing in yourself” outside of the market to maximize your future investable income. The point of the video being that if you only focus on portfolio risk, you aren’t seeing the whole picture when it comes to maximizing your success as an investor. An investor with 6 stocks and 15% annual returns and $10,000 a year of investable income is dwarfed by the investor with an index fund that provides 10% annual returns and $100,000 a year of investable income.

According to research stock picking is very risky practice for a DIY investors, technical and fundamental analysts type investors usually promote this kind of thinking, in general if you do want to pick stocks preferably it’s best to follow a some well researched KPIs like Fama and French 5 factor model I highly recommend that watch Ben Felix videos ah he covers a lot of academic research about investing.

Hi sir.... I am a trader and investor for past 3 and 1/2 year.. I have more intrest in investing i lean many books and follow you video for past 3 years but I don't have big capital to meet out my expenses... My question is 1) I will go to equity analyst job or 2) I will go to ui/ux design job and spend 3 to 4 hrs daily for reading investing books and annual report... Which one will make me a better investor

such good advice.

Swave

This channel was much better when it was focused on book summaries

@agentsnorlson7913

Жыл бұрын

Could not agree more. This was a TERRIBLE take.

Great Video sir. Hope you guys get into NATO!

Interesting video! I love the LOTR clip!

Sooo Had You Diversified And Bought The S&P 500 When You Were Young And Not Individual Stocks You Would've Made Lots Of Money. 🤷‍♂️

@TheSwedishInvestor

2 жыл бұрын

I've beaten the S&P 500 by about 10% per year on average since 2013, so I've made much more with a concentrated approach. Should probably have showed the graph in this video too, but you can find it here: kzread.info/dash/bejne/Ym2Bs8OHo7jFZ6g.html (at 28 seconds)

Ok ADVICE get a Roth=Diversification, then get a RH, TD, SOFI, any brokerage account that you can buy individual stocks/Crypto. I did then did for my first kid, now my next 2 on same path. GOOD LUCK. Also yes the path of earning more income does go up if, if you don't have kids or if do you make enough too pay for daycare's to make that extra money. Balance the Budget on the lowest income you can afford and it downhill from there. The 20 yr old has car(pay off), got a house last summer and over 10k in Roth with another 8k in brokerage. Some parents just suck teaching budgets ;).

👍👏👍

I own a lot of stocks which I don't mind. Only problem is spreading out of the money I can invest in the stocks I own and want to buy into. I try to invest more into the one's I have the most confidence in and a little in the longer shots.

I knew that, but then got scared and forgot. Now all in Tesla and hope to at least learn something. I'm 18 btw

Interesting thought provoking video! Personally I have a few investments spread around. This prevents me from being able to quickly access all my cash when I get excited about an opportunity and splurge, and possibly lose it all. This means I can only instantly access 5% of my wealth and lose at the most 5%. We sometimes hear of people mortgaging their house and using the entire sum on one exciting scheme which collapses. I think it's best to invest in a few things when you're young. Then you learn a few things, not just one! Warren Buffet and Charlie Monger say that diversification is for idiots. Though they have quite a diversified portfolio and invest in other things besides the share market. What's watching your undiversified portfolio like a hawk going to achieve? Arrest a sudden decline? Nope. Too late.

lalala! Cant hear you ... bitcoin to moon!

@dankrol4353

2 жыл бұрын

Hello how are you doing today and how is the weather....over there?

Buffet for sure doesn't understand deversification. 75% of portfolio he has in one stock. 90% about in 4 stocks.

Your videos must be long enough.

@TheSwedishInvestor

2 жыл бұрын

DFM. there's a huge one upcoming soon!

@Dfm_Sushil

2 жыл бұрын

@@TheSwedishInvestor . I’m Excited.

@dengueberries

2 жыл бұрын

@@TheSwedishInvestor can't wait!

This is the reason why I put my first money into crypto, despite the extremally high risk involved, I don't loose much even if I loose everything.

Many wrong things in one video. The worst financial advisor ever

Hello blogger, I'm Catalina, the planning manager of BitBank, can we talk?