Leggo My Ego I'm like a third grade children in my mid thirties and trying to understand investing. If you're more knowledgeable you shouldn't waste your time here.
PBS TH-cam channels can just replace public schools now right? oh wait, then who would babysit kids while parents are at work 9 to 5 and keep them busy with irrelevant crossword puzzles and other busy work. .
Such a GLORIOUS channel! Such an incredibly valuable subscription! I have learned a lot from you two in just a short while, I am very excited for what is to come! Love you both.
is it weird that i see a stock price dive, and my immediate reaction is "oh my god, i have to buy more of these!" i just never had the gut reaction to sell when the prices drop...
Yep, like a sale at Macy's Unless you need the money today, stay the course. I try to increase my contributions when the market seems to take irrational dips. Like November 2016 when Trump won (not a fan of Trump, just wondered why the market panicked.) Or March/April of this year (2020) as the market dropped far more than the underlying situation warranted. Ditto for back in 2008-2010. If you can, keep buying each month. Most of those who lost were those who locked in losses while selling when the market was low.
Yeah I buy a little extra and then sell that extra after I've met some arbitrary but realistic short term stock. I know it's better to just yeet it and forget it, but I'm constantly paranoid I might need money because of emergencies, so I have a set amount of "my" (original) money that I keep in at all times.
Investing is easy to do and not very intimidating once you get to know the basics (you don't even need much time or in depth knowledge once you get the basics right). The most important thing you have to know in investing or financial management is one word: _diversification,_ which is just a fancy way of saying don't put all your eggs in one basket (not even stocks). *How I diversify* --> according to risk, return on investment (ROI) and availability of funds. 1. Savings bank account: Very low risk, very low ROI, money available for use readily (this is my emergency fund). 2. Fixed deposits from bank: Very low risk, low to moderate ROI, money locked in investment for 1 year (or more). 3. Bonds or Secured Debentures: Low risk, Moderate ROI, money locked in investment for 1-5 years. 4. Mutual funds: Low to moderate risk, Moderate to high ROI, money locked in investment for 5-10 years. *I don't have money to invest* If you have $100 to spare monthly then you do have money to invest. That's all you need. There are monthly investment plans for mutual funds, bank fixed deposits, bonds, etc. The power of compounded interest or ROI will *blow your mind off* (just take an excel sheet and see for yourself what a monthly investment plan can do in 20 years). But you have to start *now*. The earlier you start, the earlier you will be financially secure. The more financially secure you are, the more free you will become to spend time and money on leisurely pursuits. Investing is only a small part in a 3 part formula my father (bless him!) taught me to be financially secure: 1. Develop high income skill(s) 2. Develop high return business(es) 3. Develop passive income strategies: This is where investments come in. My strategy is to develop my high income skills and high return businesses for the next 20 years. This means I have time and money to develop passive income strategies. Then once my investments are mature I can move to less time consuming professions like running a consultancy business.
@@Excalibur2 I would say betting on individual stocks are much riskier because personally I don't have much control over the company and my only source of information is what the company deems to say to its investors. Running a carefully thought out business didn't turn out very bad for me. I'm in the SaaS business now, many people told me it wouldn't go well starting a SaaS business now, but I went for it anyway because I know the technicals, didn't need much capital other than a lot of time during the initial days and while I'm not making crazy money its one solid income stream that's continually growing. Have to develop multiple such income streams.
Please people DON'T WAIT. Set it up NOW. I don't know anything, and my job started a matching 401k. I started "late" in the game around 29. I'm about to hit 40 and lets just say WOW. I never thought I would actually be a millionaire in my life time, but when I do retire I will be set and then some. Co worker, that's been here longer than me. Didn't start, and man he barely has anything. However, when I told him how much I had and my projection he started to do it. However, he lost so much compound interest he's never gonna "catch up", but it's NEVER too late.
@@ifcinvestor569 doesn't take much to beat bank savings. Going to the drive through of any fast food restaurant and start picking up change off the floor and you'd beat bank savings as far as return goes.
Just hold onto them for a long time and their value reliably increases. It's probably the best place to put your long-term savings. Dividends are fundamentally unimportant when it comes to the value of stocks. Whenever dividends are distributed, the stock loses as much value as was paid out. It's like a small of your shares regularly selling itself without you asking. When people say things like "real average annual return of the stock market is 7%", that figure assumes dividends being reinvested.
You would want to speak to someone that has more expertise in stocks and investing. There's a myriad of strategies that you can learn from right here on TH-cam but you also have to be weary because investing in businesses, from what I have experienced, is very emotional. For example, if you bought shares of SNAP (snapchat) back in June, expecting them to go up; you'd be broke by now. Their stock has plummeted due to their inability to bring on new users - in fact they are using losers to Instagram. Because they're losing users, their company doesn't seem as profitable anymore and to investors that means they are no longer valuable so they pull out - or sell their shares. I've oversimplified trading and the scenario but my point is that you have to be smart with which company you invest in. I personally have been watching TH-cam videos on investing in Forex which is a bit different than stocks but it's still a numbers/emotional game.
@@dasbuilder Not a good idea to invest in a single company. At the very least, one should keep investments into specific companies to a small part of their asset allocation. Like the video said, you should invest into something diversified, like funds tracking S&P 500, so that performance of specific companies doesn't decide what happens to your savings.
@Aozora7, Theoretically, you're right dividends are irrelevant but that's rarely seen in reality. A share price can be calculated using many different methods and often doesn't perfectly reflect the data given. As well, dividend rate hikes can have a significant impact on share prices and returns year over year.
What is there to discuss? If you don't want to gamble or have detailed information on a specific company it's best to just invest in mutual funds. People get all excited about dividends, but if you look at what you actually make in the long run if you re-invest your dividends in new shares, it's no better than a stock without dividends.
I so strongly feel that your channel is sooo underrated .! I cant believe people are more interested in unboxing videos than such a valuable information .! Please keep making videos .
You never mentioned that if the interest rate of your savings (or worse money under the bed) is less that the inflation of that currency that you are actually LOSING money that you worked hard for.
I used to work in insurance and also have a series 6&7 and I'm super glad you mentioned mutual funds. I was practically screaming "mutual funds" at my phone the whole time. I also can't help but wonder if it's worth touching on annuities and bonds for long term saving strategies. Although they're not as favorable as a mutual fund, still better than a CD for long term ROI. Although the fees associated with an annuity can make them a bit messy. Great episode regardless!
Thank you both! I have recently been thinking about investing into stocks yet I was dissuaded because it seemed risky. This video helped motivate me to do so. I look forward to more of these videos and personal finance tips.
I am a huge fan of you guys. I really appreciate how you make complex financial topics easy to understand. You always use clear and concise language, and break down complex concepts into smaller ones.
Attention for anyone who is wanting to save or invest, their is no such thing as a risk free investment. For every investment their is the chance to lose it all. Even your mattress isn't safe, if the amount of money you stash every year doesn't exceed or match the rate of inflation then you are still losing money (ok not literally what's happening is the money is becoming less and less valuable over time). Educating yourself is the only way to financial security.
Love the channel, and most things from PBS-DS. Your long scale S&P chart @ 2.45 and even the casino comparison @ 4:15 both ignore the time value of money. You've mentioned depreciation in your car video, but the stock market videos really need to include the inflation as well as the plain X-axis. You give the impression that money under the mattress is "safe" and "at least not losing money", when it's actually losing buying power. That's the marketing pitch banks put behind CDs and savings accounts, which drain away buying power like the casino while looking like they are good for you.
I completely agree with the fact you shouldn't check on your portfolio too often, from experience I know it's the best way to go, yet I do think there are exceptions. In particular options or just very volatile stocks, I'd nearly never sell a stock on a loss yet sometimes I would sell on a profit. But options I trade daily and check on on an hourly basis just to make sure one doesn't take a 200% loss or smt. So watch out with those
Just found you guys today. Being only 18, I have very little actual monetary experience and just from what I've seen already, I've learned tons of new and helpful information.
so far i've watched 3 of your videos. 2 of which i've saved to private playlists to watch again later. I'd say that's pretty good! keep up the good work.
I invest 15% of my income to mutual fund index fund. It work for me, and i only check my account every year. 15% is really low that i even not paying attention to it.
Stay away from mutual funds, the fees are higher because they cover paychecks for a team to manage the fund. Instead, buy into an ETF which has much lower fees and often mirrors the performance of mutual funds. Vanguard ETFs are low cost ways to buy into a well diversified portfolio. Even if you just buy into 3-4 ETFs you are already diversified. When you seek out an advisor, just know that they might be pushing you to a mutual fund because the fund team is paying them a kick back for promoting their funds, which covers their paychecks. So, you may not always get the best advise from an advisor.
My ETFs are doing rather well. They have equaled the exanges all year, and at a fee rate of 1/10th of 1%. I'll take that over high fees any day. Their goal is to match the exchanges.
I’ve had similar experiences at the onset of my career, but I’m consistently profitable for four years now following plays from Christine Mila, a licensed pro investor and risk analyst. She advises me on good stocks to buy and with her insights I’m doing quite great on my investments without incurring problems.
That makes sense! I also buy the idea of employing the services of a financial advisor because finding the right balance between investing and living is important to me.
I am a fellow CFP®. Normally I find myself making fund of the bad information these "financial experts" on TH-cam give. This channel is excellent. You have earned a subscriber and two thumbs up from a fellow advisor. Keep up the good work.
I was so excited for this video! Waiting all week and it did not disappoint! I'm so glad your making videos on subjects that are confusing to me and making them fun and memorable!
Aside from mutual funds, there are funds that you can buy on the stock market like shares of companies (exchange traded funds). ETFs often have very low fees and the most popular ones track diversified indices like S&P 500, MSCI World, total US stock market index, etc. It's very important to avoid high fees when investing, so don't trust someone else (especially non-fiduciary "financial advisors") to pick the right ones for you. Learn about indices and funds, and pick something that looks like a good deal to you. I generally recommend Vanguard, their fees are very low due to their ownership structure. Unlike other mutual funds, when you buy shares of Vanguard funds, you also become the shareholder of Vanguard itself, since Vanguard is owned by its own funds.
Master Warren Buffett said diversification is for people that don't know how to analyze a business. Its ok for people who don't know what they are doing.
Two Cents Thank you for putting up this video. You provided so much useful information within 6 and a half minutes. You guys are fantastic. You guys were spot on when you mentioned the market crash of 2008. I actually have many friends that suffered losses because they were so eager to sell their stocks
Just discovered this channel yesterday, and I watched a couple of videos. Now I'm subscribed and I've hit that bell so I never miss a new video. Love it, keep them coming. 😊
The stock market is not risky as long as you know what you're doing. You can invest or trade and still make money. Just educate yourself. Self investing
This is my new fave channel 💖😍 Seriously, I learned a lot from you guys and I’ve bingedwatch all your videos ever since I saw that ‘debt’ episode. Keep it up! 🤗
Great vid: just wanted to add! You don’t need a lot of money to start! Especially us young adults, take the little you have, talk to a professional and structure a plan, time is on our side! Compound interest is on our side! That’s just my 2 cents
Love how the game is set up. Either you invest or your savings will evaporate..... If you don't play, well, there is a good change you will be homeless in the future... Who wants to play?
that's because the stock market is more closely related to a ponzi scheme. As long as _others_ put in at a higher price than you( and *hold* ) then you are "profitable". That is, stocks are completely valued on demand to own them exclusively. Oftentimes, the demand is nonsensical, you can have a company underperforming for years yet, due to hype, the company stock continues to grow immensely. The hype is usually created by people who bought in low and know the secret to them making a fortune is creating enough suckers to buy in higher than them. that's the answer to why they are similar to a casino. Like casino's there are people who DO profit and how do they pay them? yep, with the losses of other players. disingenuous
Stock trading is a completely different meditations which is patient. My father stock trade, and I told him you should trade anything I'd they make the slightest dip. Wait, defintely don't read the news hype. He bought a Nividia stocks for 175, saw it drop asked me if he should trade I told him wait, essentially Nividia at that time was make their new graphics card. Price hocked to 265 bucks I told him to sell it, made 2,500 on that share.
I'd suggest covering index funds alongside mutual funds (if you're not already planning to do so). Mutual funds have management fees that can suck a substantial portion of the growth out of your portfolio, while offering few (if any) tangible benefits over index funds. Index funds also have fees, but they are typically much lower than mutual funds. Just looking over the options for my 401(k), the mutual funds fees are 10-80 times higher than the S&P500 index funds I'm invested in (0.015% for the index funds vs 0.15-1.16% for the mutual funds). Long term, the mutual funds don't outperform index funds, so those fees are just money washed down the drain for no good reason.
If you want maximum safety in the stock market, buy the following stocks :Bank of Montreal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CM), Royal Bank of Canada (RY) and Toronto Dominion Bank (TD). They are the biggest Canadian banks and they always seem to win. But, don't take my word for it. Examine the history of those five stocks yourself.
@Richi RIch If you bought the S&P500, or any large diversified fund likely, there would be no 20 year streak where you would lose money, and you only lose money if you sell at a low. As long as you don't sell during a crash, you won't lose anything.
The question is if you make more money over the 10-20 years than other investment methods. Note to others: Unless you own the casino, gambling is a bad investment. Over time, you always lose (as they said in the vid).
with options, you can very clearly defined your probabilities and risk. "70% Probability of profit, max loss 80, max profit 20, breakeven at price 48.67 in underlying at expiration"
Okay, I have a question, would y'all recommend online investment platforms like Robinhood? They probably don't/won't give the financial advice (not sure abt that) but will let you buy stocks without commissions. Is that a good strategy or should we stick to brokerage firms?
You simplified what for many is a very confusing topic. I disagree with finding a financial advisor though as they are usually a money pit. The internet is full of splendid information for FREE. Just like this channel. Looking forward to more videos.
But a bigger money pit is someone _not_ doing the research and still just throwing money at stocks. If you do the research, and LOTS of it, then sure, skip the fiduciary (_not_ 'financial advisor'). But if you don't have time to become a financial expert, a fiduciary is a great resource and usually worth their fees.
Stock market risk is fully quantifiable in the past, because we know what the performance numbers are in hindsight. It's only *mostly* quantifiable in the future because the future isn't fully predictable. That's why there's a possibility of making money. If all risk to future performance could be fully quantified (that is, we knew in advance exactly how stocks will perform), there wouldn't be anything to gain because no one would sell a stock below a price commensurate with its future performance potential according to computed risk, which means you could never buy-low-sell-high. That is sort of the situation we're getting close to, though, with modern computing resources. Financial institutions are risk-averse; they'd rather make their money through gigantic volumes of very small but safe transactions of highly computer calculated risk constrained to tight tolerances than roll the dice on big purchases with big unknowns. It's hard for the average person to make any actual money that way, since they don't have a rack of 1U servers at home crunching numbers all day and automatically putting in tens of thousands of buys and sells over a super low latency fiber internet connection.
How would you quantify it? I actually think it isn't fully quantifiable. Variance and beta don't tell the whole story when it comes to making an investment decision. Say there are two people. One randomly puts money into a stock while the other chooses to invest in the same stock based on sound fundamentals. I would contest that the risk is not the same in these two cases.
Winston Deleon All I know is I started my 401k in 1986 and it’s 1.4 million so far and $900k of that is Roth. Earning around $40k a year in reinvested dividends. Just crossed $600k in my Roth IRA. Can’t complain.
90% of what you guys do is awesome but stocks I shy away from ... I'll stick with peer to peer lending ... and for the very young a few whole life insurance policies.
Thank you so much for this! I've been looking for this kind of info and was hoping you would do a video on it! I would love some more info about how to get into this. Thanks again!
At the end, you really should have stressed the need for any financial advisor to be a fiduciary. The definition at the bottom and taking less than 10 seconds on it was cringe-inducing. That's like telling someone who has never bought a car all the important details right before they head off. It comes off as a half-hearted "try not to let them screw you too hard." Honestly, the fiduciary part might have fit better if it had been covered right after mentioning brokers or stock advice in general.
Eh, it depends on individual needs and for how long they want their money in the market.There were several 10 year periods in the past in which the index held flat or even finished lower.
Best rule to live by, when It comes to "Investing", in the stock market, only "Invest" money you can afford to lose. Something I've learned, past performance, is a great sales tool, to lure investors,but in reality, it doesn't mean jack.
TheMagnificentZoltar Though many stocks are already in correction territory. I’d say the best thing to do is to start investing some of your long term savings each quarter over the next 6 quarters. Then save part of each paycheck and put that in the stock market, regardless of what the market is doing.
Not true. For the last 2 months or so Market had biggest crash (edit: one of the biggests) in last 5 years. It's a the very low point right now, even though companies actually perform higher than expected. Just like Warren Buffet said: someone is interested in short term market dip...
Major tax cuts for corporations may be inflating the value of stocks because of all the stock buybacks, so with that the next crash may be around the corner. Although, as they say, you can't time the market, and in 20 plus years its almost guaranteed to be higher then, so might as well just invest now.
Julia:Say mama... Mama
Baby:Compounding interest
Philip:I'm so proud
Stranger: Ohh gawd... *He is a BOSS BABY!!*
Sp Ghost lol
Hahahaha 😂
Baby: Where is my savings account grandma
How the bloody hell is this not getting views. This is quality content.
The channel is very new, and growing fast. Doubled it appears in the last week.
Huh? I had the exact opposite reaction. This is a shitty video. The video appears to be geared toward 3rd grade children.
Leggo My Ego I'm like a third grade children in my mid thirties and trying to understand investing. If you're more knowledgeable you shouldn't waste your time here.
PBS TH-cam channels can just replace public schools now right?
oh wait, then who would babysit kids while parents are at work 9 to 5 and keep them busy with irrelevant crossword puzzles and other busy work. .
@@2011blueman Maybe you should do the video yourself
Such a GLORIOUS channel! Such an incredibly valuable subscription! I have learned a lot from you two in just a short while, I am very excited for what is to come! Love you both.
Also subscribe to Jackspedicey
Fancy seeing jesus here
Been seeing you on like all the videos I watch. Well God bless
@@desp8161 nice work what an old meme
You can make money out of stone Jesus!
This channel is too good to only have 50k subscribers
It had 42k just yesterday
Growing quickly. We're excited! - Philip 👨🏻
I Thought the exact same thing, yesterday
Had less than 10k some days ago
It had like 12k three days ago.
Here is my two cent: buy shares in this channel 😂😂
Lol yea how do we do it
How do you come up with such cool quips! Thanks for your videos.
How do I short it?
Quick Fix - Thought Provoking Videos
I did.
Bought 700 shares of Google after IPO.
Invest all your money in Bitcoin
For most people, a low cost index fund tracking the s&p 500 or NASDAQ will be enough. Keep it simple.
You're filling a vital hole in TH-cam.
No sonder you're growing so quickly!
You ignoring him or jdgaf?.
@Kern County Films WHAT THE ACTUAL FUCK?
@@LuisSierra42 what did he say?!
@@likeadino8580 It was something sexual, but i no longer remember (it had to do with holes tho)
@@LuisSierra42 *oh damm*
is it weird that i see a stock price dive, and my immediate reaction is "oh my god, i have to buy more of these!" i just never had the gut reaction to sell when the prices drop...
That’s exactly why you’ll be successful in the long run, logic not emotion 👍🏻
I do that a lot in a game based on the market. (Best Brokers for anyone interested)
Yep, like a sale at Macy's
Unless you need the money today, stay the course.
I try to increase my contributions when the market seems to take irrational dips. Like November 2016 when Trump won (not a fan of Trump, just wondered why the market panicked.)
Or March/April of this year (2020) as the market dropped far more than the underlying situation warranted.
Ditto for back in 2008-2010. If you can, keep buying each month.
Most of those who lost were those who locked in losses while selling when the market was low.
Yeah I buy a little extra and then sell that extra after I've met some arbitrary but realistic short term stock.
I know it's better to just yeet it and forget it, but I'm constantly paranoid I might need money because of emergencies, so I have a set amount of "my" (original) money that I keep in at all times.
Same here! Love doubling down on my investments for a cheaper average price per share 👍🏻
Investing is easy to do and not very intimidating once you get to know the basics (you don't even need much time or in depth knowledge once you get the basics right). The most important thing you have to know in investing or financial management is one word: _diversification,_ which is just a fancy way of saying don't put all your eggs in one basket (not even stocks).
*How I diversify* --> according to risk, return on investment (ROI) and availability of funds.
1. Savings bank account: Very low risk, very low ROI, money available for use readily (this is my emergency fund).
2. Fixed deposits from bank: Very low risk, low to moderate ROI, money locked in investment for 1 year (or more).
3. Bonds or Secured Debentures: Low risk, Moderate ROI, money locked in investment for 1-5 years.
4. Mutual funds: Low to moderate risk, Moderate to high ROI, money locked in investment for 5-10 years.
*I don't have money to invest*
If you have $100 to spare monthly then you do have money to invest. That's all you need. There are monthly investment plans for mutual funds, bank fixed deposits, bonds, etc. The power of compounded interest or ROI will *blow your mind off* (just take an excel sheet and see for yourself what a monthly investment plan can do in 20 years). But you have to start *now*. The earlier you start, the earlier you will be financially secure. The more financially secure you are, the more free you will become to spend time and money on leisurely pursuits.
Investing is only a small part in a 3 part formula my father (bless him!) taught me to be financially secure:
1. Develop high income skill(s)
2. Develop high return business(es)
3. Develop passive income strategies: This is where investments come in.
My strategy is to develop my high income skills and high return businesses for the next 20 years. This means I have time and money to develop passive income strategies. Then once my investments are mature I can move to less time consuming professions like running a consultancy business.
Building a business is almost like the next riskier option beyond betting on individual stocks. Very high risk, potential for very high reward.
@@Excalibur2 I would say betting on individual stocks are much riskier because personally I don't have much control over the company and my only source of information is what the company deems to say to its investors. Running a carefully thought out business didn't turn out very bad for me. I'm in the SaaS business now, many people told me it wouldn't go well starting a SaaS business now, but I went for it anyway because I know the technicals, didn't need much capital other than a lot of time during the initial days and while I'm not making crazy money its one solid income stream that's continually growing. Have to develop multiple such income streams.
@@flow5718 that's true, I didn't think of that. Perhaps one day I'll have to look into starting my own business.
Buy Tesla, ignore the news. Get rich. Math.
Thanks for sharing flow !
Please people DON'T WAIT. Set it up NOW. I don't know anything, and my job started a matching 401k. I started "late" in the game around 29. I'm about to hit 40 and lets just say WOW. I never thought I would actually be a millionaire in my life time, but when I do retire I will be set and then some. Co worker, that's been here longer than me. Didn't start, and man he barely has anything. However, when I told him how much I had and my projection he started to do it. However, he lost so much compound interest he's never gonna "catch up", but it's NEVER too late.
So many people are missing out on the stock market, all my friends think it's a scam, but it's such a good way to grow money, anyone can do it.
Your friends are referring to 401(K) which is a tax law. But yes anyone can do it and the returns are much better than a bank savings anymore.
@@ifcinvestor569 doesn't take much to beat bank savings. Going to the drive through of any fast food restaurant and start picking up change off the floor and you'd beat bank savings as far as return goes.
"Owning businesses is a scam" is a very strange position to have
I love the creativity! Thank you for this! very informative. Advanced congratulations on having a million subs ♡
I just binged watched your channel last night. New episode! Nice surprise :)
Every Wednesday morning! Thanks for subscribing! 👨🏻
ChiefVlad lmao a year later I’m doing the same thing
I like your 2 cents. Or as we call them in India, 1.45 rupees.
or in Venezuela.. 10000000000000000000000000000000000 Bolivares.
in Ukraine, it's 0.5 Hryvnia
Bad pun Gandpande
In Perú 0.06 Soles
Or in the Philippines, 1.1 PHP
are y'all going to discuss how stocks actually make money for the individual? dividends, sales, etc?
Just hold onto them for a long time and their value reliably increases. It's probably the best place to put your long-term savings.
Dividends are fundamentally unimportant when it comes to the value of stocks. Whenever dividends are distributed, the stock loses as much value as was paid out. It's like a small of your shares regularly selling itself without you asking. When people say things like "real average annual return of the stock market is 7%", that figure assumes dividends being reinvested.
You would want to speak to someone that has more expertise in stocks and investing. There's a myriad of strategies that you can learn from right here on TH-cam but you also have to be weary because investing in businesses, from what I have experienced, is very emotional.
For example, if you bought shares of SNAP (snapchat) back in June, expecting them to go up; you'd be broke by now. Their stock has plummeted due to their inability to bring on new users - in fact they are using losers to Instagram.
Because they're losing users, their company doesn't seem as profitable anymore and to investors that means they are no longer valuable so they pull out - or sell their shares.
I've oversimplified trading and the scenario but my point is that you have to be smart with which company you invest in. I personally have been watching TH-cam videos on investing in Forex which is a bit different than stocks but it's still a numbers/emotional game.
@@dasbuilder Not a good idea to invest in a single company. At the very least, one should keep investments into specific companies to a small part of their asset allocation.
Like the video said, you should invest into something diversified, like funds tracking S&P 500, so that performance of specific companies doesn't decide what happens to your savings.
@Aozora7, Theoretically, you're right dividends are irrelevant but that's rarely seen in reality. A share price can be calculated using many different methods and often doesn't perfectly reflect the data given. As well, dividend rate hikes can have a significant impact on share prices and returns year over year.
What is there to discuss? If you don't want to gamble or have detailed information on a specific company it's best to just invest in mutual funds.
People get all excited about dividends, but if you look at what you actually make in the long run if you re-invest your dividends in new shares, it's no better than a stock without dividends.
I so strongly feel that your channel is sooo underrated .! I cant believe people are more interested in unboxing videos than such a valuable information .! Please keep making videos .
Going through my feed and skipped through the new vox video but tapped on the new 2¢ video.
Keep doing the good work!
The one about Ramen?
I only subscribed to two channels. Vox and Two cents 😍
You never mentioned that if the interest rate of your savings (or worse money under the bed) is less that the inflation of that currency that you are actually LOSING money that you worked hard for.
They should be teaching these in schools
In Universities
Even if it does you’re always gonna have that select group that wants to blame their lack of something on this person or that thing.
I am learning this in economics in high school. We doing a project by "investing in stocks" and checking in on them weekly
They do lol
they do it in Germany
I used to work in insurance and also have a series 6&7 and I'm super glad you mentioned mutual funds. I was practically screaming "mutual funds" at my phone the whole time. I also can't help but wonder if it's worth touching on annuities and bonds for long term saving strategies. Although they're not as favorable as a mutual fund, still better than a CD for long term ROI. Although the fees associated with an annuity can make them a bit messy. Great episode regardless!
Thanks 😊
Definitely waiting for this video.
Keep up the good work!
Thanks so much Saachi! Philip👨🏻
Thank you both! I have recently been thinking about investing into stocks yet I was dissuaded because it seemed risky. This video helped motivate me to do so. I look forward to more of these videos and personal finance tips.
When I see the stock market go down, I get excited because then I can buy more investments at a discount 😂
I am a huge fan of you guys. I really appreciate how you make complex financial topics easy to understand. You always use clear and concise language, and break down complex concepts into smaller ones.
Attention for anyone who is wanting to save or invest, their is no such thing as a risk free investment. For every investment their is the chance to lose it all. Even your mattress isn't safe, if the amount of money you stash every year doesn't exceed or match the rate of inflation then you are still losing money (ok not literally what's happening is the money is becoming less and less valuable over time).
Educating yourself is the only way to financial security.
Love the channel, and most things from PBS-DS.
Your long scale S&P chart @ 2.45 and even the casino comparison @ 4:15 both ignore the time value of money. You've mentioned depreciation in your car video, but the stock market videos really need to include the inflation as well as the plain X-axis. You give the impression that money under the mattress is "safe" and "at least not losing money", when it's actually losing buying power. That's the marketing pitch banks put behind CDs and savings accounts, which drain away buying power like the casino while looking like they are good for you.
I completely agree with the fact you shouldn't check on your portfolio too often, from experience I know it's the best way to go, yet I do think there are exceptions. In particular options or just very volatile stocks, I'd nearly never sell a stock on a loss yet sometimes I would sell on a profit. But options I trade daily and check on on an hourly basis just to make sure one doesn't take a 200% loss or smt. So watch out with those
Just found you guys today. Being only 18, I have very little actual monetary experience and just from what I've seen already, I've learned tons of new and helpful information.
I see millions of views in one year
Lol only .27 million views a year later
Can't believe I'm just finding this channel now. This is FANTASTIC!!
You guys are really great at explaining difficult concepts.
This is legit my favorite channel. I work at a bank and all our videos are sooo bland. This will be so better for my presentations. Thank you 🙏
personal finance explained with easy to understand examples, You guys are doing great work ! Financial Education is a must for everyone
so far i've watched 3 of your videos.
2 of which i've saved to private playlists to watch again later.
I'd say that's pretty good! keep up the good work.
Y'all should do a video about renting vs buying, please.
I invest 15% of my income to mutual fund index fund. It work for me, and i only check my account every year. 15% is really low that i even not paying attention to it.
Two Cents: How Risky Is The Stock Market?
r/Wall Street Bets: Hold my beer stocks.
Learned more from this video than I did in my Economics classes in university. Love this channel!!
Stay away from mutual funds, the fees are higher because they cover paychecks for a team to manage the fund. Instead, buy into an ETF which has much lower fees and often mirrors the performance of mutual funds. Vanguard ETFs are low cost ways to buy into a well diversified portfolio. Even if you just buy into 3-4 ETFs you are already diversified. When you seek out an advisor, just know that they might be pushing you to a mutual fund because the fund team is paying them a kick back for promoting their funds, which covers their paychecks. So, you may not always get the best advise from an advisor.
I use betterment. They have the best etf portfolios tailored just for you
ETFs are guaranteed to never equal or beat the exchange. Managed investments are better.
My ETFs are doing rather well. They have equaled the exanges all year, and at a fee rate of 1/10th of 1%. I'll take that over high fees any day. Their goal is to match the exchanges.
YES!
@@TheBlueQuasar the majority of actively managed funds fail to beat the index in the long run
I think this may be the best channel on TH-cam. Fantastic videos and entirely educational without being condescending.
Lol, it’s no game of luck neither is it gambling. However if you treat the market like a casino then the market will treat you like a gambler!
So true! The need for a more conservative, strategic approach in the market cannot be overemphasized.
Nothing looks easier in hindsight than stock trading. I believe professionalism and experience is key for lucrative outcomes on the market!
Lol! The reality of investing is much too complicated. I’m in my 2nd year and my portfolio is a complete mess!
I’ve had similar experiences at the onset of my career, but I’m consistently profitable for four years now following plays from Christine Mila, a licensed pro investor and risk analyst. She advises me on good stocks to buy and with her insights I’m doing quite great on my investments without incurring problems.
That makes sense! I also buy the idea of employing the services of a financial advisor because finding the right balance between investing and living is important to me.
I am a fellow CFP®. Normally I find myself making fund of the bad information these "financial experts" on TH-cam give. This channel is excellent. You have earned a subscriber and two thumbs up from a fellow advisor. Keep up the good work.
I was so excited for this video! Waiting all week and it did not disappoint! I'm so glad your making videos on subjects that are confusing to me and making them fun and memorable!
Aside from mutual funds, there are funds that you can buy on the stock market like shares of companies (exchange traded funds). ETFs often have very low fees and the most popular ones track diversified indices like S&P 500, MSCI World, total US stock market index, etc.
It's very important to avoid high fees when investing, so don't trust someone else (especially non-fiduciary "financial advisors") to pick the right ones for you. Learn about indices and funds, and pick something that looks like a good deal to you.
I generally recommend Vanguard, their fees are very low due to their ownership structure. Unlike other mutual funds, when you buy shares of Vanguard funds, you also become the shareholder of Vanguard itself, since Vanguard is owned by its own funds.
Amazing video, I support the way you teach, its so easy to follow. Thank You!
The quality of this channel is completely unmatched by any other channel I’m subscribed to.
I highly appreciate your effort put into your videos!
I learned the stock market through Animal Crossing’s “stalk” market. It was a really good introduction. 😊
Did you learn when to sell your turnip? I learnt the hard way of actually putting in a low amount of funds (play money) that I was willing to loose.
Master Warren Buffett said diversification is for people that don't know how to analyze a business. Its ok for people who don't know what they are doing.
Most active managers fail to beat the index over time
Two Cents Thank you for putting up this video. You provided so much useful information within 6 and a half minutes. You guys are fantastic. You guys were spot on when you mentioned the market crash of 2008. I actually have many friends that suffered losses because they were so eager to sell their stocks
These kind of channels youtube needs the most! Thanks a lot guys! I'll be your loyal subscriber FOREVER! you have my word!
You love some of dat Richard Thaler. But in all honesty Benjamin Graham pretty much advised on the same thing: don't check your stocks much.
I think it's important to do regular checks whilst you are learning the ropes on when and how to invest.
Yup. Only idiots check their stocks often. Some do it just to flex in front of their crush or to appear superior to other people.
Just discovered this channel yesterday, and I watched a couple of videos. Now I'm subscribed and I've hit that bell so I never miss a new video. Love it, keep them coming. 😊
This Channel is growing fast! everyone needs to be on board.
Thanks for sharing!
Any books you recommend to get started on investing?
The stock market is not risky as long as you know what you're doing. You can invest or trade and still make money. Just educate yourself. Self investing
This is my new fave channel 💖😍 Seriously, I learned a lot from you guys and I’ve bingedwatch all your videos ever since I saw that ‘debt’ episode. Keep it up! 🤗
Your videos are absolutely amazing... I'm just loving it... Such great content is rare on TH-cam
Great vid: just wanted to add! You don’t need a lot of money to start! Especially us young adults, take the little you have, talk to a professional and structure a plan, time is on our side! Compound interest is on our side! That’s just my 2 cents
I felt in love with this ponzi channel 😂. You did prepare very well your project. Congrat👏
This channel is so underrated. I love this couple !
Love how the game is set up. Either you invest or your savings will evaporate.....
If you don't play, well, there is a good change you will be homeless in the future...
Who wants to play?
I'm excited for the mutual fund episode. I already know a lot about them, but these videos offer great wholesome insight
Legends say if you are early, two cents will reply
The legends are true... 👨🏻
No you legend not true, i was the 5th one commented here but no reply.
Kunal Gupta durka durka
@@Ts-ti1vd poor thing
@@LuisSierra42 hello Putin. How is it goin in Russia?
All good?
that's because the stock market is more closely related to a ponzi scheme. As long as _others_ put in at a higher price than you( and *hold* ) then you are "profitable". That is, stocks are completely valued on demand to own them exclusively. Oftentimes, the demand is nonsensical, you can have a company underperforming for years yet, due to hype, the company stock continues to grow immensely. The hype is usually created by people who bought in low and know the secret to them making a fortune is creating enough suckers to buy in higher than them.
that's the answer to why they are similar to a casino. Like casino's there are people who DO profit and how do they pay them? yep, with the losses of other players.
disingenuous
Very good channel. Deserves way more subs!
I’m really glad TH-cam recommended your channel . Very informative video.
Stock trading is a completely different meditations which is patient. My father stock trade, and I told him you should trade anything I'd they make the slightest dip. Wait, defintely don't read the news hype. He bought a Nividia stocks for 175, saw it drop asked me if he should trade I told him wait, essentially Nividia at that time was make their new graphics card. Price hocked to 265 bucks I told him to sell it, made 2,500 on that share.
Armani Nguon - buying the dip will kill you if buy the bankrupt.
I follow a lot of finance people and channels and this is the best channel for sure. Thanks for the content.
Once you understand the stock market and how it works, you’ll realize that it can be, no, IS one of the best ways to get wealth in the long term.
I'd suggest covering index funds alongside mutual funds (if you're not already planning to do so). Mutual funds have management fees that can suck a substantial portion of the growth out of your portfolio, while offering few (if any) tangible benefits over index funds. Index funds also have fees, but they are typically much lower than mutual funds. Just looking over the options for my 401(k), the mutual funds fees are 10-80 times higher than the S&P500 index funds I'm invested in (0.015% for the index funds vs 0.15-1.16% for the mutual funds). Long term, the mutual funds don't outperform index funds, so those fees are just money washed down the drain for no good reason.
Clean and educating as usual.
If you want maximum safety in the stock market, buy the following stocks :Bank of Montreal (BMO), Bank of Nova Scotia (BNS), Canadian Imperial Bank of Commerce (CM), Royal Bank of Canada (RY) and Toronto Dominion Bank (TD). They are the biggest Canadian banks and they always seem to win. But, don't take my word for it. Examine the history of those five stocks yourself.
Stock markets are a long term game, yes there is risk, but over time you do make money (Established firms ofcourse)
@Richi RIch If you bought the S&P500, or any large diversified fund likely, there would be no 20 year streak where you would lose money, and you only lose money if you sell at a low. As long as you don't sell during a crash, you won't lose anything.
Richi RIch
It’s probably like Vegas to you because you can’t afford to invest.
The question is if you make more money over the 10-20 years than other investment methods. Note to others: Unless you own the casino, gambling is a bad investment. Over time, you always lose (as they said in the vid).
with options, you can very clearly defined your probabilities and risk. "70% Probability of profit, max loss 80, max profit 20, breakeven at price 48.67 in underlying at expiration"
So glad I found this channel
Okay, I have a question, would y'all recommend online investment platforms like Robinhood? They probably don't/won't give the financial advice (not sure abt that) but will let you buy stocks without commissions. Is that a good strategy or should we stick to brokerage firms?
Only 9k views? What? I love this channel! Crazy more people aren't watching.
60K view one day after you posted ! I will check again a month from now for sure
@@mahdkadi that's awesome. I just want this channel to have everything. They deserve it.
so when is a good time to pull money out of the stock market? how do you use the money you make in the stock market? and what are dividens?
Can you guys cover 401k
It's the same basic concept
THANK YOU. FINALLY FOUND A VIDEO THAT MAKES SENSE ABOUT STOCKS. THANK YOU FOR MAKING AN EDUCATION VIDEO ABOUT THE STOCK MARKET.
Accurate information presented in a non baised way. Great job
I have always issues trying to comunicate this to my friends, but I am never able to explain myself. I will show your program to my friends. Love you
My friends never get it either
So happy this channel exist I been investing in the market for a couple months now 😊
@Go MGTOW
I seen that too. I only do futures right now.
You simplified what for many is a very confusing topic.
I disagree with finding a financial advisor though as they are usually a money pit.
The internet is full of splendid information for FREE. Just like this channel. Looking forward to more videos.
But a bigger money pit is someone _not_ doing the research and still just throwing money at stocks. If you do the research, and LOTS of it, then sure, skip the fiduciary (_not_ 'financial advisor'). But if you don't have time to become a financial expert, a fiduciary is a great resource and usually worth their fees.
Stock market risk is actually quite quantifiable but many people choose to ignore that.
Stock market risk is fully quantifiable in the past, because we know what the performance numbers are in hindsight. It's only *mostly* quantifiable in the future because the future isn't fully predictable. That's why there's a possibility of making money. If all risk to future performance could be fully quantified (that is, we knew in advance exactly how stocks will perform), there wouldn't be anything to gain because no one would sell a stock below a price commensurate with its future performance potential according to computed risk, which means you could never buy-low-sell-high.
That is sort of the situation we're getting close to, though, with modern computing resources. Financial institutions are risk-averse; they'd rather make their money through gigantic volumes of very small but safe transactions of highly computer calculated risk constrained to tight tolerances than roll the dice on big purchases with big unknowns. It's hard for the average person to make any actual money that way, since they don't have a rack of 1U servers at home crunching numbers all day and automatically putting in tens of thousands of buys and sells over a super low latency fiber internet connection.
How would you quantify it? I actually think it isn't fully quantifiable. Variance and beta don't tell the whole story when it comes to making an investment decision. Say there are two people. One randomly puts money into a stock while the other chooses to invest in the same stock based on sound fundamentals. I would contest that the risk is not the same in these two cases.
Winston Deleon
All I know is I started my 401k in 1986 and it’s 1.4 million so far and $900k of that is Roth. Earning around $40k a year in reinvested dividends.
Just crossed $600k in my Roth IRA.
Can’t complain.
90% of what you guys do is awesome but stocks I shy away from ... I'll stick with peer to peer lending ... and for the very young a few whole life insurance policies.
What to buy? Vanguard. With only 0.05% commission it’s a steal
Most funds (3/4s) fail to beat the S&P500 index, so why pay higher fees for historically lower performance?
You just convinced me to start investing in the market. Even if I think I am not part of it, I really am. You are right.
and I just laugh at that sound of screaming folks when the chart goes down lol
Thank you so much for this! I've been looking for this kind of info and was hoping you would do a video on it! I would love some more info about how to get into this. Thanks again!
underatted channel, keep it up ! :)
How do you guys do your animations?
We need a series for this. Especially because I have no idea how to get into the stock market in my country (Brazil).
Hi two cents your videos are great
I am curious as to the differences between a mutual fund and an ETF, and the benefits and drawbacks of both. Thank you!
At the end, you really should have stressed the need for any financial advisor to be a fiduciary. The definition at the bottom and taking less than 10 seconds on it was cringe-inducing. That's like telling someone who has never bought a car all the important details right before they head off. It comes off as a half-hearted "try not to let them screw you too hard."
Honestly, the fiduciary part might have fit better if it had been covered right after mentioning brokers or stock advice in general.
They do in other videos. Pretty sure they mention it several times in the Mutual Fund vid.
Question: would you still recommend investing in a mutual fund if you already have a pension fund or 401k and you have a tight budget?
Just get the S&P 500 index it's not rocket science
Ivan Herrera, u mean ETC?
ETF
Ivan Herrera or short some overvalued stocks
Not now. We are due a bear market for a few years and investing now could loose you 40-50%+ of your investment. Sit on cash and bonds for now.
Eh, it depends on individual needs and for how long they want their money in the market.There were several 10 year periods in the past in which the index held flat or even finished lower.
Best rule to live by, when It comes to "Investing", in the stock market, only "Invest" money you can afford to lose. Something I've learned, past performance, is a great sales tool, to lure investors,but in reality, it doesn't mean jack.
The stock market is near an all-time high. Wait for the next big crash and invest after that.
TheMagnificentZoltar Though many stocks are already in correction territory. I’d say the best thing to do is to start investing some of your long term savings each quarter over the next 6 quarters. Then save part of each paycheck and put that in the stock market, regardless of what the market is doing.
Not true. For the last 2 months or so Market had biggest crash (edit: one of the biggests) in last 5 years. It's a the very low point right now, even though companies actually perform higher than expected. Just like Warren Buffet said: someone is interested in short term market dip...
you could have said that any time during the last 10 years lmao
Major tax cuts for corporations may be inflating the value of stocks because of all the stock buybacks, so with that the next crash may be around the corner. Although, as they say, you can't time the market, and in 20 plus years its almost guaranteed to be higher then, so might as well just invest now.
and look what happened 2 days ago! spot on
I honestly love this channel. It is uncommon for me to subscribe, but this channel is worth it.