Have you ever wanted to invest in American (USA) stocks (shares) of companies like Facebook, Amazon, Apple, Netflix, Google, Microsoft, Tesla or other hot US IT stocks from India? Today, we discuss how to invest in US stocks for beginners and why you should consider investing in American stocks for create long-term wealth.
In today's video, we talk about investing in US stock market from India. And if it is recommended to invest in US stock market. We have covered the US stock market, FAANG stocks, why you should invest in US stocks and how to invest in US stocks.
FAANG stocks represent Facebook, Amazon, Apple, Netflix and Google. Today, these FAANG have a total market cap of $ 6 Trillion+ with Facebook contributing $876 B, Apple Contributing 2.1 Trillion $, Amazon contributing 1.6 Trillion $, Netflix contributing $242 B and Google contributing 1.5 Trillion $.
Dow Jones: DJIA is a stock exchange that measure the performance of top 30 companies listed in the US stock market. So you can say that Dow Jones is the Sensex of US. This index was established in 1885. So that’s 136 year old! Comparatively, Sensex was established in 1986.
Nasdaq: Nasdaq represents all the companies that trade on Nasdaq. There are around 3,300 companies that are listed on Nasdaq. As of March 15, 2020, the industry weights of the Nasdaq Composite Index's individual securities are as follows: technology at 48.4%, consumer services at 19.4%, health care at 10.2%, financials at 7.2%, industrials at 6.8%, consumer goods at 5.5%, utilities at 0.8%, telecommunications at 0.7%, oil and gas at 0.5% and basis materials at 0.3%.
If we break this, you have a popular index of NASDAQ100 that would track the top 100 listed companies on Nasdaq. This index is more skewed towards technology stocks that represents around more than 50% weightage in the Index. For example, Apple has a current weightage of 10.9%, Microsoft has a weightage of 9.6%, Amazon has a weightage of 8.3%,Tesla has a weightage of 4.2%, Facebook has a weightage of 3.8% and Alphabet i.e. the parent company of Google has a total weightage of 7.1%.
S&P 500: S&P 500 is a tracker of top 500 companies in US. It is more popular as it represents a broader index. Information technology: 27.60%, Health care: 13.44%, Consumer discretionary: 12.70%, Communication services: 10.79%, Financials: 10.34%, Industrials: 8.47%, Consumer staples: 6.55%, Utilities: 2.73%, Materials: 2.64%, Real estate: 2.41% and : 2.33%
If you liked the video then don't forget to share and subscribe.
However, as discussed in the video, the most important task is to identify and understand the quality of stock (business) only then, do you get the confidence to invest more in an undervalued stock and become a true value investor to make money and get rich from stocks.
Warren Buffett, Margin of Safety, investing basics, intrinsic value, stock valuation, discounted cash flow, DCF method, PE ratio, value investing, beginner investing tips, stock market education, financial literacy, Charlie Munger, Benjamin Graham, Rakesh Jhunjhunwala, mutual fund managers, compounding, discounting, business cash flows, undervalued stocks, quality stocks, auction market, rich investors, how to value stocks
Hashtags:
#WarrenBuffett #ValueInvesting #MarginOfSafety #StockValuation #IntrinsicValue #DCFMethod #PERatio #InvestingBasics #StockMarketTips #FinancialLiteracy #CharlieMunger #BenjaminGraham #RakeshJhunjhunwala #StockMarketEducation #UndervaluedStocks #QualityInvesting #InvestingForBeginners #Compounding #Discounting #StockMarketStrategies