Mr. Town, I have listened to about 50 episodes of your and your daughters podcast, and have just discovered your channel on TH-cam. I have not gone through your videos yet to see if you have made one already, but if you could make a video of how you analyze reports, what sites you use, and what you are looking for in those reports it would be a huge help. I really enjoy your content as well as your delivery. I greatly appreciate what you do for us little guys and gals, and I thank you for your service.
I love this channel! I’ve read anti fragile and that book will give you a great mind set for investing. Buying stocks is like a diet. It’s not about what you eat it’s about what you don’t eat. With stocks it’s about what you don’t buy.
Late bloomer here, thank you for calming my nerves about just starting to invest, The compounding part kind of gets me, but I will figure it out in a few years.
Hi Phil, first thank you very much for being honest and for regularly sharing your expertise. I am confuse though. You said that we have to sit on our capital as long as we needed to and 'till we found the great time or opportunity to invest it, but on the other side, you said that we have to start as early as possible to benefit from compound interest. Isn't that the latter sentence contradicting your previous claim?
Exactly my question. I am not sure. I have not seen any satisfactory response. I max out my 401K yearly into relatively safer low cost index and mutual funds with respectable track record . On the side I try to save some small amount before I make any expense out. That amount stays for a while until I find some investment opportunity on sale. Fidelity stock screener and Zacks have some interesting stuff. Most of it is marketing fluff and real information is buried deep. There is no short cut to learn this process in my opinion..it is journey not a destination.
what he means is that dont buy investments right away, wait until the right time comes before you buy a certain investment, so for example: lets say you have 1000 dollars that you want to invest, and investment A is worth 50 dollars a share, so you take your 1000 dollars and you buy 20 shares at 50 dollars, but then a month later the shares go down to 40 dollars a share, and now your 1000 dollars is worth 800 dollars, and that is the thing you want to avoid. When you go to buy an investment you want to buy it at the absolute best price possible so then hopefully you investment doesnt become worth less than what you paid for it. Now when it comes to "starting as early as possible" what this means, is that you need to get your head in the investment game as early as possible and start getting ready to invest, so again for example, if you are 18 and start saving money now, you can save your money and wait for the right time to buy the investment you want for the best price, as compared to starting when you are 30 and doing the same thing,
@@rahulsethi0009 , I will never trust any mutual funds with respectable track record, maybe fidelity or other big names are bit better. I bought a company claim to be expert in small caps, with perfect history, and they just liquidate the fund two months ago, with a big loss to the investors. They open a new fund instead. I went to their website for curiosity, every number look so amazingly impressive. I will never trust these firms and people, ever, again
I completely agree!... I have been using bearish buys to increase my share positions (with little to no additional funds being added to the account) since 2015, and it works wonderfully... I also like your idea of "dollar cost averaging with a brain"...Great stuff, keep it up...
what i'm lost on is how to value a company. what do i look for in the 10k or what's important on a balance sheet/income statement/cashflow statement. how can i be sure when a stock is undervalued how do I competently assess what a stock's intrinsic value is? how many stocks should make up my portfolio? 5-6? 15-20? Should i invest in some index funds?
I'm reading your #1 rule book now and I have a question about waiting for the price to fall below margin of safety. Usually if a company's price falls below the MOS while the rest of the sector is doing well, then there's something wrong with that individual company. And those issues are not reflected in the past financial figures and won't be revealed in the Big 5 because, well, they haven't been released yet. Is the only safe time to buy is when the entire sector or the entire market are down due to rising interest rates or decreased consumer confidence or a bubble? For example, Amazon's stock price will not just go down by itself tomorrow by 50% for no reason while the rest of the sector (or market) stays the same. Something must be really wrong for that one individual's stock to go down by that much, and therefore cannot just buy a bunch of Amazon stock at 50% discount just because the big 5 looks good, because they were only indicative of the past and not the future. Unless I'm an insider, any news (fake or not) that could affect the company's stock by that much will not be any more discernible to me than the general public. The only time I see the MOS method works is if we're going through a recession or if the entire sector's price goes down.
My biggest question currently is how do you know where to start? Meaning which businesses to begin watching & looking into? Should I look for new companies to the exchange or businesses with at least a 5 year history? That's honestly my biggest obstacle currently. Appreciate all your videos & insight. Looking forward to hearing from you on any direction. Thank you!
rukis5420 you should be looking at both, new and companies with five or more years history. To start though look at the things you have and enjoy in life they have a direct correlation to you and should be the first types of businesses you should educate yourself on. I definitely would start with that brand pick up in your profile picture.
Love the videos, I have tried investing but had to put on hiatus and sell everything to open up budget to be able to pay myself. High debt to income ratio so trying to fix my past mistakes. Wish I had never had a credit card.
This confused me for a while too, since I only saw compounding through the lens of dividends and my portfolio value. That makes sense to most people. Once you view yourself as part owner in the business who is entitled to the earnings rather than just some ethereal price, then it begins to make more sense. Growth companies take the profits, reinvest them back into the business, then use that growth to earn even more. It's just changing the subject of compounding from "me" to "we".
So when you buy low do you actually sell your stock high or just pocket the interest $$$ when it goes up and stay up since you bought it at a discount?????
you said to wait to invest until the stock market crashes, but then later said to start investing right away to maximize your benefit from compound interest. These two statements kind of contradict each other. Which one do you suggest? Thanks!
You could do straight cash so it’s ready to be used when right when you need it. Also, gold or bonds are normally decent options when the market is going down on a crash. Problem is for a correction rather than a crash it may not be too short to justify anything other than cash.
Phil, can I suggest a video? Can you do a video for all of your recommended books for beginners to read? Thank you, I reall appreciate it if you will. I'm starting to love stock markets because of you.
Hello Phil, Thank you for the informative video. One question I have is: why is it a bad idea to invest in more than ten stocks? What if there are a lot more than ten great businesses that could go on sale? (Sorry if this is rudimentary, but I'm a little confused by this concept.) ~Shalini
I am wondering.... when i choose to buy a given amout of stock shares and press the ask/accept button, do i buy the shares instantly or is my "buy" put on the market and someone sells me their shares? And if i do buy instantly, where do the extra shares come from? Or does the total value of the company get divided to include my shares so as to actually make the combined value increase while the individual shares decrease? I am a totally newbie with stock exchange so forgive my "ignorance" 😊 any anwser is appriciated.
Hi Phil I am Mathew from India.i have been following your videos for quite sometime and it improved my courage to invest in stocks. But I have a query.should I stop and withdraw my mutual fund sip which I started 7 years before and wait for opportunities in direct stocks or should I continue my sip regardless of seeing the market.
Mr. Phil, you asked what confuses me the most? To me my question is what really causes the markets to go up and down? Does the banks, central banks get together and have a future plan, or by the Treasury or peoples' speculation.....? Kinda curious.
Could you run through a "new to you" stock analysis? I have watched some older content such as this video and I watched your 10 cap rule video. What I want to see is if I am misunderstanding your discussion on this subject. I have two stocks that I think are in the 10 cap rule as of now and have the potential to become growth behemoths. I haven't completed a full analysis of the 10ks on either but I don't want to run through those until the math is there or is that wrong? The two tickers are bhc and gsky. I am getting my numbers off yahoo and see them as on sale just in that context. Thanks Phil
Question: I'm 17, thus I will probably not earn any money for the next 5-6 years (university) How much of the money I currently own should I invest? Great video by the way, greetings from Germany
JumpingJoel I just got back from his workshop and I tell ya I wish I started learning this stuff at your age. Start squirreling money away now and commit to learning. That way, when you're ready, you have the capital you need to just dive in. Think about how confident you'll be in a company by the time you've saved a few grand.
Hi Phil. Very helpful video, thank you so much for all your efforts! I have been reading up on lot of best advised books and had a question. Considering one holds a business with sound fundamentals in a market that has become overpriced overall (the stock is also trading at a price a little above the intrinsic value, lets say 120%).....should one take gains (or some gains) or stay invested? PS: Phil Fisher in his book 'Common Stock and Uncommon Profit' advises to stay invested, hence the question.
I'd love to know more about how to learning and stay on top of individual companies. I have trouble doing things like looking up financial statements, understanding the news for a company, building a model that tells me when the stock of a company I love is expensive or cheap.
Revenue growth, user growth and profit margin are to important metrics you should look at. Look for unbiased information, like on Wikipedia. Search the company on TH-cam. Listen to the management team. Explore the company website. Ignore the hype or the slander, people will try and pump and dump or fear-monger to serve their interest.
Thank you for your video(s). Re compounding, I understand how powerful this is to grow wealth over time, but am curious how to do it now in this time of low to zero interest rates. If with shares, do you reinvest dividends? and are there other ways to compound?
All the positive stock market returns you see quoted are based on reinvesting dividends, the idea is to hold those companies forever. Compounding in the stock market isn't based on interest rates, that's for savings accounts - the compounding comes from an expected annual growth rate in the value of your portfolio.
Ok.. now what if your favorite company isn’t necessarily going down but increasing..? Since I purchased my stock, at 69$ and now it worth 89$.. you said I should sale at this point and buy when it goes back down, doesn’t really make since to me🤔... will you help me to understand a bit better.. Thank you kindly
I was buying a lot of shares of good companies as it made sense to diversify but now I’m thinking to sell em & invest that money in few but the best companies. 🌱
Can you put a video up for what to look for in an organizations health when considering to buy stock. Use a well know organization such as Apple. Maybe use an organization that has poor numbers as well.
Where do you go to even find stocks to buy? Is it a website? I know this is a truly rookie question, but I really don't know where or how to go. Thanks ahead of time!
hulkhuggett Go to investopedia... I hope I spelled it right. They have articles to learn and even a simulator. It's a great way to start, I've been on the simulator for about a year or so. You get to use money that isn't yours to buy whatever stock you choose but it's play based on the real market. Hope this helps, safe investments.
I'd love to learn how to know when a business is profitable. In the video you say you need to know the value of a company and buy it for 50% less. How do I know that?
Phil - I love your education and books. Here is my hypothetical scenario. If someone has retired and has a decent IRA rollover (say $2 million) that they are living off of with monthly drawdowns, what happens if they sit in cash for 1,2,3 years waiting for the SALE all while their account is shrinking due to them Living of of the money? Are they too late for this style of investing?
Thank you for your informative and interesting videos. They're awesome. Where and how can we get to know about tools or techniques to analyse the stock? before buying
Any ideas for being 55 after major continued Disabilty and Divorce with 2ooo monthly to invest but, life expectancy based on condition averages 10 years. No debt. Plenty in savings interest sucks. Only thing I can think to do, since I may need cash for medical needs is to buy silver and gold to hedge against inflation. 16 years of getting low tax home in good shape, bought land, that is increasing. Had I not gotten ill would of never been in this shape. Bought great Nusmatic coins back in 2010 thru 2013 that have went up at least 50 percent. Sell off if I live that long at lower income to hopefully reduce capital gains. Its a catch 22 being ill. I not found any one that had a good answer. Keep 401 k funds 80 stocks 20 bonds. But scared at this point to risk putting in it and taking tax hit for medical care. Unless there is a way around it? Love to heard your ideas. Planners I talked with do not realize seriousness of medical condition. I live small, truck 8 years old 20k miles. No big fancy house. It’s a haunting problem sir. Additional have 86 year old bed bound mother living with me. He income pays for care giver to come twice daily, her food and insurance. I cut everything I can. Love to cut Dish but only entertainment my mother has.
What confuses me the most is how do I get interest on the money I've invested? Let's say, for example, I have $1,000 and I decide to invest in in a great company that fits the criteria. How do I start getting interest in my investment? That's the one thing I fail to understand and it bugs me really badly. Everyone keeps throwing around a 10% interest rate, as an example, but nobody mentions how you acquire that interest. From what I've learned so far about investing, you can only make money from buying cheap in selling low or from dividends. So, if that's the case, how do I get an interest on my initial investment if I don't sell the company or if the company doesn't issue dividends, as most companies don't. I'd really like for anyone who knows the answer to help me understand. I'm really interested in starting to invest, but I want to understand the whole process properly so I can make educated decisions. I'm currently investing in my own business, but I have about £200 in disposable income every month after I do that, so I'd like to invest this in stocks. If I am to invest £200/month for the next year (£2,400) in total, how should that be done? Should I buy £200 worth of stock every month or rather keep the £200 and only buy when the company is undervalued? From what Phil say, I should keep my money and invest it when the time is right, but I want to start now and take advantage of compounding interest at the same time. So I'm really confused about how to go about. Thank you in advance for any help and support, guys!
Hi. I’m a federal employee contributing to the TSP. How can I maximize my money on the TSP or outside. Should I invest somewhere else? Thanks for your help.
Jorge R Caban Rios I’m just going to assume you’re in the military. You should leave your TSP alone and start a Roth IRA. I told my husband to do that before he retired of course he didn’t listen to me about savings or any of that stuff. Now all he does is complain about money & wonder why I don’t complain about it. I’m big on savings and making sure I’m set. Get a Navy Federal Credit Union account if you don’t already have one and look into their Navy Federal Financial Group.
Most likely those big companies will be 52 weeks low or all time low. That's the time to jump and pump truck load of cash in good businesses. Sit on that investment for 2-3 years and you would be tripling your cash..
Hey Phill sometimes I wonder if real estate investing is the right investment for me or should I invest in precious metals , or a mutual fund because I need financial freedom so that I can enjoy my time here on earth & because I know that life is short and I want to speed up my retirement . I'm at a point of my life where I'm just learning about building wealth by making wise financial decisions.
Oz C Common stocks are the best way to go as far as what to invest in if you're going to do it yourself and you are starting with low capital. If you are going to do real estate investing it isn't as easy unless you do an crowd funded REIT that you don't have to be accredited for. Try to stay away from mutual funds unless you don't mind getting returns at market value consistently around 5% annually.
One tiny query. Since we buy low, is it alright to sell when the stocks reach a certain price or not sell and wait for it to correct a bit again so that I add on some more. Due to selling and profit realisation we will have to pay tax. Rather accumulate every time it's corrected and not sell for a long time frame?
I work I have a 4 to 7 job I decided to lower the percentage because I really think the Market's going to go the other way and when it does I think I might raise that percentage I mean I can't get out of that because they say once you work for the company you have to stay with the 457 plan which the company does not contribute but I've doing something so I'm thinking about lowering the percentage and when the market does crash raise it
I haven't watched all of your videos yet(although I'm working on it) but I'm not sure how to go about investing online. I'll do some more research on it, but if you know what you want to buy, where's the best place to say, "Hey, I want to buy X amount of stock in this company, make it so." ?
Anna Tumbas The for M's are what helps you decide which business to Invest in. They are Meaning, Moat, Management, & Margin of Safety. There is a pdf download that you can obtain through the rule one website that explains what they are in detail.
You say that the market is up right now for no reason and to be careful...but also that young people should start now so that they can compound interest... what do I do?
Invest in diversified index funds or mutual funds or if available a company 401k. Timing the market is essentially gambling. Only gamble with money you can afford to lose.
If you have a steady income you can start buying into the market every month with whatever money you fell you can set aside for long term savings (money you won't need for at least 10 years) and then just keep buying when the market turns down. Just don't go all in with all your savings at one time, especially not at current valuations.
You diversify in case one of your company go capult...in that case if you have you money in 10 companies, you will only loose 10% of it. Also if you always on buying something with a good value, you dont need to wait for market to crash. Also I see some confusion on comparing value with stock prices :)
I'm so eager to invest my money. I've saved up 10k with that in mind, but I keep it in cash at this point, as I kinda think stocks will drop soon. Is it a good move? Should I buy stocks now or wait till the bubbles burst? When they do, stuff will be cheaper, but then again - he I am sitting with cash that's not working. Oh, decisions, decisions. I hope I won't regret being patient now.
what i would suggest at this point in time is to put that cash into a high interest saving account that is liquid ( as in you can take the money out anytime ) it probably wont make big bucks, but at least it will be doing *something* as apposed to doing nothing, next after you have that money in a savings account ( and better yet, depending on where you live in the world, hopefully its a tax break/tax free savings account ) its time to learn on how to actually invest, going into the investment world with no investment knowledge is super dangerous, and could be a good way to see your money go bye-bye, so while you have your money in that savings account, start doing research, start reading books, start getting some knowledge on what the investment world is about, then once you have gathered some knowledge you can open some practice accounts, aka stock trade accounts, here in Canada our banks have options where you can open practice stock trade accounts, where you can use pretend money on the real stock market, i would suggest doing something like that for at least a year, to get a feel for it and see how it works, then once you do that, you can slowly start using your own money, perhaps 10% at a time, so if you make a big error, it wont completely destroy you, and you can still recover from it
That is actually very good advice to beginners. I will add that taking some time to learn Technical Analysis (TA) on TradingView, important things like 50,100,200 Moving Averages on Daily, Weekly, and Monthly charts will help you out a ton when to gauge if a stock is worth buying after finding support levels during a correction/recession. There are many Indicators but I would stick with Moving Averages in beginning you can go more in depth with Relative Strength Index (RSI), Stochistic, MACD and Fibonacci Retracements.
I would find public car auctions and invest now. If you don't know where, you can call up a few tow truck companies, and they are likely to host auctions. $500 can get you a car. You might be able to sell for at least $1000. start with one car and keep waiting to invest in stocks later.
How do you value a company. How do you get the real sticker price. I read Rule One but i am still confuse on how to do that. The book was written a long time ago and its harder to find all the numbers i need online since the websides have changed..
Mr Phil, could you make a video on how to properly read quarterly reports and other important financial documents??
Thank you!
A S yes!!!
th-cam.com/users/rachanaphadke
Sensational message. The core challenge here is decoding Financial Statements of companies to choose best one to invest in.
Mr. Town,
I have listened to about 50 episodes of your and your daughters podcast, and have just discovered your channel on TH-cam. I have not gone through your videos yet to see if you have made one already, but if you could make a video of how you analyze reports, what sites you use, and what you are looking for in those reports it would be a huge help.
I really enjoy your content as well as your delivery. I greatly appreciate what you do for us little guys and gals, and I thank you for your service.
I think how long it takes to build up your wealth is really the thing that surprised me the most when I started to educate myself about investing.
This is the single best investing video I have watched in TH-cam! Thank you for making it!!!
Every night before I go to sleep ,I watch your videos,they really inspire me in a special way,thank you Phil...
I love this channel! I’ve read anti fragile and that book will give you a great mind set for investing. Buying stocks is like a diet. It’s not about what you eat it’s about what you don’t eat. With stocks it’s about what you don’t buy.
Late bloomer here, thank you for calming my nerves about just starting to invest, The compounding part kind of gets me, but I will figure it out in a few years.
Mr. Phil, can you do a short video on the best dividend stocks. Thx u
Thanks for the candidness, Phil!
You are crystal clear and 100% true. Thank you!!
I appreciate that!
4:09" hunker down" -Steve Wallis
Hi Phil, first thank you very much for being honest and for regularly sharing your expertise.
I am confuse though. You said that we have to sit on our capital as long as we needed to and 'till we found the great time or opportunity to invest it, but on the other side, you said that we have to start as early as possible to benefit from compound interest. Isn't that the latter sentence contradicting your previous claim?
Exactly my question. I am not sure. I have not seen any satisfactory response. I max out my 401K yearly into relatively safer low cost index and mutual funds with respectable track record . On the side I try to save some small amount before I make any expense out. That amount stays for a while until I find some investment opportunity on sale. Fidelity stock screener and Zacks have some interesting stuff. Most of it is marketing fluff and real information is buried deep. There is no short cut to learn this process in my opinion..it is journey not a destination.
what he means is that dont buy investments right away, wait until the right time comes before you buy a certain investment, so for example: lets say you have 1000 dollars that you want to invest, and investment A is worth 50 dollars a share, so you take your 1000 dollars and you buy 20 shares at 50 dollars, but then a month later the shares go down to 40 dollars a share, and now your 1000 dollars is worth 800 dollars, and that is the thing you want to avoid. When you go to buy an investment you want to buy it at the absolute best price possible so then hopefully you investment doesnt become worth less than what you paid for it. Now when it comes to "starting as early as possible" what this means, is that you need to get your head in the investment game as early as possible and start getting ready to invest, so again for example, if you are 18 and start saving money now, you can save your money and wait for the right time to buy the investment you want for the best price, as compared to starting when you are 30 and doing the same thing,
Sheryl Althaus He’s saying have the money ready as early as possible, not necessarily to invest it straight away.
@@rahulsethi0009 , I will never trust any mutual funds with respectable track record, maybe fidelity or other big names are bit better. I bought a company claim to be expert in small caps, with perfect history, and they just liquidate the fund two months ago, with a big loss to the investors. They open a new fund instead. I went to their website for curiosity, every number look so amazingly impressive. I will never trust these firms and people, ever, again
I completely agree!... I have been using bearish buys to increase my share positions (with little to no additional funds being added to the account) since 2015, and it works wonderfully... I also like your idea of "dollar cost averaging with a brain"...Great stuff, keep it up...
what i'm lost on is how to value a company.
what do i look for in the 10k or what's important on a balance sheet/income statement/cashflow statement.
how can i be sure when a stock is undervalued
how do I competently assess what a stock's intrinsic value is?
how many stocks should make up my portfolio?
5-6? 15-20?
Should i invest in some index funds?
Read this book. Specifically this edition. Don't get the 6th edition. This book goes over how to evaluate a company and it's securities (stock).
Naythan Williams so what is the name of the book.
I'm reading your #1 rule book now and I have a question about waiting for the price to fall below margin of safety. Usually if a company's price falls below the MOS while the rest of the sector is doing well, then there's something wrong with that individual company. And those issues are not reflected in the past financial figures and won't be revealed in the Big 5 because, well, they haven't been released yet. Is the only safe time to buy is when the entire sector or the entire market are down due to rising interest rates or decreased consumer confidence or a bubble?
For example, Amazon's stock price will not just go down by itself tomorrow by 50% for no reason while the rest of the sector (or market) stays the same. Something must be really wrong for that one individual's stock to go down by that much, and therefore cannot just buy a bunch of Amazon stock at 50% discount just because the big 5 looks good, because they were only indicative of the past and not the future. Unless I'm an insider, any news (fake or not) that could affect the company's stock by that much will not be any more discernible to me than the general public.
The only time I see the MOS method works is if we're going through a recession or if the entire sector's price goes down.
ruthlessluder unfortunately thats the point. Right now all companies are overvalued! All value investors are really frustrated! Lol!
ruthlessluder
ruthlessluder
This was one of those eye opening videos! Thank you
Am i 17 and i have done my first investment
Invest in companies which generated free Cash flow atleast last 3 years
Perfect bro.. All the best
My biggest question currently is how do you know where to start? Meaning which businesses to begin watching & looking into? Should I look for new companies to the exchange or businesses with at least a 5 year history? That's honestly my biggest obstacle currently. Appreciate all your videos & insight. Looking forward to hearing from you on any direction. Thank you!
rukis5420 you should be looking at both, new and companies with five or more years history. To start though look at the things you have and enjoy in life they have a direct correlation to you and should be the first types of businesses you should educate yourself on. I definitely would start with that brand pick up in your profile picture.
Thank you
rukis5420 Your welcome!
Thank you sir...
How to start compounding? Any website or how to start....please need some start up or guide...thanks you
I love ur videos! I’m no longer afraid of stocks. Thanks for ur wisdom
Your videos are so valuable and full of knowledge.
Thanks for watching, Prajan Gurung!
Love the videos, I have tried investing but had to put on hiatus and sell everything to open up budget to be able to pay myself. High debt to income ratio so trying to fix my past mistakes. Wish I had never had a credit card.
What is most realible platform for single stock/share market investing?
I have dividend stocks should I take the profit. Or hold the stocks and wait for a pull back.
Love your videos... informative and great
Question::: how does compound interest happen with growth stock investing?
This confused me for a while too, since I only saw compounding through the lens of dividends and my portfolio value. That makes sense to most people. Once you view yourself as part owner in the business who is entitled to the earnings rather than just some ethereal price, then it begins to make more sense. Growth companies take the profits, reinvest them back into the business, then use that growth to earn even more. It's just changing the subject of compounding from "me" to "we".
So when you buy low do you actually sell your stock high or just pocket the interest $$$ when it goes up and stay up since you bought it at a discount?????
Interest??? Shares don't get interest.
Thank you Phil
But Warren says: Buy and hold forever. But why is it being advised to buy and sell?
what confuses me right now is to wait for an opportunity to invest (market crash) or to start investing right now so i can compound. Thank you!
Beginner , research before I start, question, don't understand a stock market crash, does it affect all stock market investors ?
you said to wait to invest until the stock market crashes, but then later said to start investing right away to maximize your benefit from compound interest. These two statements kind of contradict each other. Which one do you suggest? Thanks!
Where is the place to buy business where they are low or in sale? Stock market? Or small business that aren't on stock market? Thanks.
Where do you park your cash while waiting for the next market correction?
As cash... Keep it liquid in your account.
You could do straight cash so it’s ready to be used when right when you need it. Also, gold or bonds are normally decent options when the market is going down on a crash. Problem is for a correction rather than a crash it may not be too short to justify anything other than cash.
I'll hold it for you.
I'm waiting for the punch line.
Bonds or in a savings account
Phil, can I suggest a video? Can you do a video for all of your recommended books for beginners to read? Thank you, I reall appreciate it if you will. I'm starting to love stock markets because of you.
Sweet, Phil talks about books in this video
th-cam.com/video/lgsMp1hflrM/w-d-xo.html&list=PLorqA7s-iUG7p7eHpo9_zc4VWoIYp5Jiu&index=2
Hello Phil,
Thank you for the informative video.
One question I have is: why is it a bad idea to invest in more than ten stocks? What if there are a lot more than ten great businesses that could go on sale? (Sorry if this is rudimentary, but I'm a little confused by this concept.) ~Shalini
This video is so helpful ty
Thx 4 telling the truth
I am wondering.... when i choose to buy a given amout of stock shares and press the ask/accept button, do i buy the shares instantly or is my "buy" put on the market and someone sells me their shares? And if i do buy instantly, where do the extra shares come from? Or does the total value of the company get divided to include my shares so as to actually make the combined value increase while the individual shares decrease? I am a totally newbie with stock exchange so forgive my "ignorance" 😊 any anwser is appriciated.
Hi Phil I am Mathew from India.i have been following your videos for quite sometime and it improved my courage to invest in stocks. But I have a query.should I stop and withdraw my mutual fund sip which I started 7 years before and wait for opportunities in direct stocks or should I continue my sip regardless of seeing the market.
This always confuses me. Let's say I want invest. How do I do it on my own? Do I need a broker? What are the fees for playing?
great advice, keep up the good work, love your channel!
Mr. Phil, you asked what confuses me the most? To me my question is what really causes the markets to go up and down? Does the banks, central banks get together and have a future plan, or by the Treasury or peoples' speculation.....? Kinda curious.
Totally true ! Thanks Phil !
Hi Phil, I was wondering what your recommended amount of funds to start investing with is, thanks
Could you run through a "new to you" stock analysis? I have watched some older content such as this video and I watched your 10 cap rule video. What I want to see is if I am misunderstanding your discussion on this subject. I have two stocks that I think are in the 10 cap rule as of now and have the potential to become growth behemoths.
I haven't completed a full analysis of the 10ks on either but I don't want to run through those until the math is there or is that wrong? The two tickers are bhc and gsky. I am getting my numbers off yahoo and see them as on sale just in that context.
Thanks Phil
Question: I'm 17, thus I will probably not earn any money for the next 5-6 years (university)
How much of the money I currently own should I invest?
Great video by the way, greetings from Germany
JumpingJoel I just got back from his workshop and I tell ya I wish I started learning this stuff at your age. Start squirreling money away now and commit to learning. That way, when you're ready, you have the capital you need to just dive in. Think about how confident you'll be in a company by the time you've saved a few grand.
If you find value and know that you can live without the money, go in with both feet. Let it sit, let it compund.
JumpingJoel get a job while in college
JumpingJoel only invest money you don't mind losing
All right, thanks for the advice. Definitely trying to have a passive income that I can then invest
Hi Phil. Very helpful video, thank you so much for all your efforts!
I have been reading up on lot of best advised books and had a question.
Considering one holds a business with sound fundamentals in a market that has become overpriced overall (the stock is also trading at a price a little above the intrinsic value, lets say 120%).....should one take gains (or some gains) or stay invested?
PS: Phil Fisher in his book 'Common Stock and Uncommon Profit' advises to stay invested, hence the question.
well done. I pretty much knew it , but it should be emphasized
Hello, so can I pick 5/6 companies that I like and invest in them and use compounding interest.
I'd love to know more about how to learning and stay on top of individual companies. I have trouble doing things like looking up financial statements, understanding the news for a company, building a model that tells me when the stock of a company I love is expensive or cheap.
Revenue growth, user growth and profit margin are to important metrics you should look at. Look for unbiased information, like on Wikipedia. Search the company on TH-cam. Listen to the management team. Explore the company website. Ignore the hype or the slander, people will try and pump and dump or fear-monger to serve their interest.
Thank you for your video(s). Re compounding, I understand how powerful this is to grow wealth over time, but am curious how to do it now in this time of low to zero interest rates. If with shares, do you reinvest dividends? and are there other ways to compound?
All the positive stock market returns you see quoted are based on reinvesting dividends, the idea is to hold those companies forever. Compounding in the stock market isn't based on interest rates, that's for savings accounts - the compounding comes from an expected annual growth rate in the value of your portfolio.
What are the best stocks to invest in?
Ok.. now what if your favorite company isn’t necessarily going down but increasing..? Since I purchased my stock, at 69$ and now it worth 89$.. you said I should sale at this point and buy when it goes back down, doesn’t really make since to me🤔... will you help me to understand a bit better.. Thank you kindly
I was buying a lot of shares of good companies as it made sense to diversify but now I’m thinking to sell em & invest that money in few but the best companies. 🌱
Can you put a video up for what to look for in an organizations health when considering to buy stock. Use a well know organization such as Apple. Maybe use an organization that has poor numbers as well.
Where do you go to even find stocks to buy? Is it a website? I know this is a truly rookie question, but I really don't know where or how to go. Thanks ahead of time!
hulkhuggett Go to investopedia... I hope I spelled it right. They have articles to learn and even a simulator. It's a great way to start, I've been on the simulator for about a year or so. You get to use money that isn't yours to buy whatever stock you choose but it's play based on the real market. Hope this helps, safe investments.
Edliani Almonte hey, I appreciate that. I will check it out.
hulkhuggett No problem, hope it helps.
Robinhood
I'd love to learn how to know when a business is profitable. In the video you say you need to know the value of a company and buy it for 50% less. How do I know that?
Hi Phil, Better to start now with the right company or wait for the next market crash?
Phil - I love your education and books. Here is my hypothetical scenario. If someone has retired and has a decent IRA rollover (say $2 million) that they are living off of with monthly drawdowns, what happens if they sit in cash for 1,2,3 years waiting for the SALE all while their account is shrinking due to them Living of of the money? Are they too late for this style of investing?
Hi you said SCC? But nothing shows for SCC
Thank you Phil town
thank you, youre great!
Do you think it's worth investing in Vanguards Lifestrategy funds? Is that still vulnerable if a finacial crash occurs?
What about time in the market being better than timing the market?
How do I start investing on my own? Any app or webs
Thank you for your informative and interesting videos. They're awesome. Where and how can we get to know about tools or techniques to analyse the stock? before buying
Ninad Haldankar go to ruleoneinvesting.com
Watch more videos. Also trial and error.
What trading platform do you use
Hey really enjoy your videos. Great content.
Acorns is great!
Any ideas for being 55 after major continued Disabilty and Divorce with 2ooo monthly to invest but, life expectancy based on condition averages 10 years. No debt. Plenty in savings interest sucks. Only thing I can think to do, since I may need cash for medical needs is to buy silver and gold to hedge against inflation. 16 years of getting low tax home in good shape, bought land, that is increasing. Had I not gotten ill would of never been in this shape. Bought great Nusmatic coins back in 2010 thru 2013 that have went up at least 50 percent. Sell off if I live that long at lower income to hopefully reduce capital gains. Its a catch 22 being ill. I not found any one that had a good answer. Keep 401 k funds 80 stocks 20 bonds. But scared at this point to risk putting in it and taking tax hit for medical care. Unless there is a way around it? Love to heard your ideas. Planners I talked with do not realize seriousness of medical condition. I live small, truck 8 years old 20k miles. No big fancy house.
It’s a haunting problem sir. Additional have 86 year old bed bound mother living with me. He income pays for care giver to come twice daily, her food and insurance. I cut everything I can. Love to cut Dish but only entertainment my mother has.
What confuses me the most is how do I get interest on the money I've invested? Let's say, for example, I have $1,000 and I decide to invest in in a great company that fits the criteria. How do I start getting interest in my investment? That's the one thing I fail to understand and it bugs me really badly. Everyone keeps throwing around a 10% interest rate, as an example, but nobody mentions how you acquire that interest. From what I've learned so far about investing, you can only make money from buying cheap in selling low or from dividends. So, if that's the case, how do I get an interest on my initial investment if I don't sell the company or if the company doesn't issue dividends, as most companies don't.
I'd really like for anyone who knows the answer to help me understand. I'm really interested in starting to invest, but I want to understand the whole process properly so I can make educated decisions. I'm currently investing in my own business, but I have about £200 in disposable income every month after I do that, so I'd like to invest this in stocks.
If I am to invest £200/month for the next year (£2,400) in total, how should that be done? Should I buy £200 worth of stock every month or rather keep the £200 and only buy when the company is undervalued? From what Phil say, I should keep my money and invest it when the time is right, but I want to start now and take advantage of compounding interest at the same time. So I'm really confused about how to go about.
Thank you in advance for any help and support, guys!
How can i buy your book from country Nepal??
thankyou, grandpa.....i'll go n play ;)
smartest guy I've seen on the net so far lol another great video man!
How is it possible to get in touch with you? Thank you for such an amazing channel...
Hi. I’m a federal employee contributing to the TSP. How can I maximize my money on the TSP or outside. Should I invest somewhere else? Thanks for your help.
Jorge R Caban Rios I’m just going to assume you’re in the military. You should leave your TSP alone and start a Roth IRA. I told my husband to do that before he retired of course he didn’t listen to me about savings or any of that stuff. Now all he does is complain about money & wonder why I don’t complain about it. I’m big on savings and making sure I’m set. Get a Navy Federal Credit Union account if you don’t already have one and look into their Navy Federal Financial Group.
what is the link to your 64 gurus
Awesome!
How does one know when the market is down to buy stocks from well known companies like Apple, Google, Amazon etc...?
Most likely those big companies will be 52 weeks low or all time low. That's the time to jump and pump truck load of cash in good businesses. Sit on that investment for 2-3 years and you would be tripling your cash..
I'm from India, and I'm little confused where to invest money.......
Can you do a video about company revenue and it is so important and not profit.
Should I need to invest in the same company every month when I have capital? Or should I research new companies to buy
Is there a way to learn how these analysts predict/estimate future growth? Or is it more of an educated guess?
Hey Phill sometimes I wonder if real estate investing is the right investment for me or should I invest in precious metals , or a mutual fund because I need financial freedom so that I can enjoy my time here on earth & because I know that life is short and I want to speed up my retirement . I'm at a point of my life where I'm just learning about building wealth by making wise financial decisions.
Oz C Common stocks are the best way to go as far as what to invest in if you're going to do it yourself and you are starting with low capital. If you are going to do real estate investing it isn't as easy unless you do an crowd funded REIT that you don't have to be accredited for. Try to stay away from mutual funds unless you don't mind getting returns at market value consistently around 5% annually.
Good stuff. Love the video.
One tiny query. Since we buy low, is it alright to sell when the stocks reach a certain price or not sell and wait for it to correct a bit again so that I add on some more. Due to selling and profit realisation we will have to pay tax. Rather accumulate every time it's corrected and not sell for a long time frame?
Even now there are tons of investments that are going down that are good buys and he's correct listen to this man u won't go wrong
I work I have a 4 to 7 job I decided to lower the percentage because I really think the Market's going to go the other way and when it does I think I might raise that percentage I mean I can't get out of that because they say once you work for the company you have to stay with the 457 plan which the company does not contribute but I've doing something so I'm thinking about lowering the percentage and when the market does crash raise it
I haven't watched all of your videos yet(although I'm working on it) but I'm not sure how to go about investing online. I'll do some more research on it, but if you know what you want to buy, where's the best place to say, "Hey, I want to buy X amount of stock in this company, make it so." ?
You'll want a broker. I've used and trust TradStation >> www.tradestation.com/promo/ruleone/
How do you know what brand or company to invest in? Thanks
Anna Tumbas The for M's are what helps you decide which business to Invest in. They are Meaning, Moat, Management, & Margin of Safety. There is a pdf download that you can obtain through the rule one website that explains what they are in detail.
Where is the best place to invest now since stocks and real estate are already very high?
You say that the market is up right now for no reason and to be careful...but also that young people should start now so that they can compound interest... what do I do?
Invest in diversified index funds or mutual funds or if available a company 401k. Timing the market is essentially gambling. Only gamble with money you can afford to lose.
I disagree w/ ScarletNight - stay in a good amount of cash (I'm 50%) and wait for the opportunity to buy the dip. It will come.
open an account.... study the stocks that you want to buy,,, then buy it when it reached 50 percent margin of safety
If you have a steady income you can start buying into the market every month with whatever money you fell you can set aside for long term savings (money you won't need for at least 10 years) and then just keep buying when the market turns down. Just don't go all in with all your savings at one time, especially not at current valuations.
You diversify in case one of your company go capult...in that case if you have you money in 10 companies, you will only loose 10% of it. Also if you always on buying something with a good value, you dont need to wait for market to crash. Also I see some confusion on comparing value with stock prices :)
I'm so eager to invest my money. I've saved up 10k with that in mind, but I keep it in cash at this point, as I kinda think stocks will drop soon. Is it a good move? Should I buy stocks now or wait till the bubbles burst? When they do, stuff will be cheaper, but then again - he I am sitting with cash that's not working. Oh, decisions, decisions. I hope I won't regret being patient now.
what i would suggest at this point in time is to put that cash into a high interest saving account that is liquid ( as in you can take the money out anytime ) it probably wont make big bucks, but at least it will be doing *something* as apposed to doing nothing, next after you have that money in a savings account ( and better yet, depending on where you live in the world, hopefully its a tax break/tax free savings account ) its time to learn on how to actually invest, going into the investment world with no investment knowledge is super dangerous, and could be a good way to see your money go bye-bye, so while you have your money in that savings account, start doing research, start reading books, start getting some knowledge on what the investment world is about, then once you have gathered some knowledge you can open some practice accounts, aka stock trade accounts, here in Canada our banks have options where you can open practice stock trade accounts, where you can use pretend money on the real stock market, i would suggest doing something like that for at least a year, to get a feel for it and see how it works, then once you do that, you can slowly start using your own money, perhaps 10% at a time, so if you make a big error, it wont completely destroy you, and you can still recover from it
That is actually very good advice to beginners. I will add that taking some time to learn Technical Analysis (TA) on TradingView, important things like 50,100,200 Moving Averages on Daily, Weekly, and Monthly charts will help you out a ton when to gauge if a stock is worth buying after finding support levels during a correction/recession. There are many Indicators but I would stick with Moving Averages in beginning you can go more in depth with Relative Strength Index (RSI), Stochistic, MACD and Fibonacci Retracements.
I would find public car auctions and invest now. If you don't know where, you can call up a few tow truck companies, and they are likely to host auctions. $500 can get you a car. You might be able to sell for at least $1000. start with one car and keep waiting to invest in stocks later.
Wait for significant drops, way too high right now.
You are talking about value investing :)
Great video Mr. Phil. Do you know how can I invest in the American stock market from Latin America ?
I wouldn't. It's in big trouble!
@@eezy251able Why ?
@@eezy251able Why?
I am confused about whether I should wait or whether I should start now knowing that the market is overpriced for compounding effects?
The term "the market" is misleading. The big companies may be overpriced but there are companies that are not overpriced. Your job is to find them.
thanks :) very new to this so I am just trying to work it all out
Best time to start is now because you will learn more the sooner you start investing
How do you value a company. How do you get the real sticker price. I read Rule One but i am still confuse on how to do that. The book was written a long time ago and its harder to find all the numbers i need online since the websides have changed..
The future dollar value of a company can be seen in it's revenue growth and profit margin. Keep watching Phil/Warrens videos and you'll catch on.