Nicholas Crown: Learn Investing Basics from Wall Street Pro | The Really Rich Podcast - Ep. 34
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- เผยแพร่เมื่อ 28 พ.ค. 2024
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In episode 34 of The Really Rich Podcast, Nicholas Crown talks about the world of financial investing and defines how investing takes time for value to be realized. Nicholas illuminates the craft of investing, where your money gets to work and slowly expands over time. He's simplifying the topic to make it incredibly accessible. Learn this technique now.
(If you missed episode 33, check it out here: • Nicholas Crown: Reveal... )
Full episode on Spotify: open.spotify.com/show/3aoAPG9...
COMMENT BELOW WHAT YOU WANT TO HEAR US TALK ABOUT IN THE NEXT PODCAST 👇🏼
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CHAPTERS:
00:00 Preview
00:24 How does this video work?
01:59 Qualifications and caveats!
03:04 Getting this wrong can ruin your life
06:06 This is about staying rich, not getting rich
07:40 Focus on financial assets, not real estate...
08:57 The earlier you start investing, the better!
11:56 What is investing?
13:23 Trading Vs Investing
14:19 What's an Investment Thesis?
14:50 Why do things go up and down?
15:42 What's an index fund?
16:54 Are markets fair and efficient?
18:04 What's the difference between investing and gambling?
19:07 Is trading or investing "fun"?
20:17 Your best returns aren't in the stock market
21:54 So how do you approach all this?
23:21 Section 1: Allocation
30:12 Section 2: Stocks
31:59 Section 3: Bonds
33:11 Bonus: Alternative Investments
36:44 Summary: A little homework goes a long way
Have you read The Field Guide or took the course yet?? www.nicholascrown.com/guide
Great video! In a future video could you touch on your opinion of bonds vs Closed End Funds and REITs? I would love to hear your thoughts and I think it could be really helpful for your community.
Remember, guys, this is for free. Didn't have to pay money for it. Props to Nicholas for producing such a thought out video that's good solid information and fundamentals.
Note on bonds/fixed income at 32:04 as this is a Basics 101 we're assuming that you're holding bonds to maturity - their price fluctuates just like stocks otherwise. Comment if you'd like to learn more about bonds.
Yes, please
Also interested in bonds!
Yes please, I just found out that there is a whole market for private bonds
Interested
I would! This was great information, and I'd love more.
Im glad these videos are more focused around the thought and idea of your looking to do instead of, buy this and wait. Great video bud and again, the editing is on point.
Amazing information! Thanks Nicholas 😎👏👏
Eager to learn more Mr. Crown. I’ve been and off and on gambler for 3 years. Time and place for sure, grabbing a book for good measure.
Great video. Thank you so much. I watched the whole thing. I felt like I was taking a class and sitting in lecture.
I personally love dollar cost averaging into index funds
Thank you @NicolasCrownTH-cam
This is amazing. I should be sending you a check for this!
This is a very valuable video. Thank you.
Thank you for this video. This is probably one of the best videos I’ve watched
Great video, I have been looking for something that gives me an overview of options as a beginner. Really love the structure and clarity of the whole video.
Incredible, can't wait for more
love this vid. informative and relatable
Great idea to diversify into podcasting to reduce the risk of youtube (as a platform) going stale. Graham Stephan's the Iced Coffee Hour is a great example too, if less broad facing
Good job Mr. Crown.
Solid stuff Mr Crown
This was great, thank you for sharing
When you realize 98% of S&P gain is driven by 7 companies you start to reconsider... Great video.
Great video. The "talk show" and shorts are quirky and entertaining but this is the real meat and potatoes. I'd say forget the other stuff and do more videos like this. A little dry and a very big bight all at once, but you delivered the goods. Keep it up. You got me to subscribe on this one.
Nicholas, fantastic channel and info here; thank you so much! Your charisma is insane!
What’s the brand of your jacket in this video?😂
Great video Nick, I watched this on the way to work this morning
Just commenting so more vids like this show up in my feed.
I buy VTI, VXUS, and bonds. I have a good chunk in a HYSA as well as I save up for a house. I max out my Roth and HSA first.
I also spend money collecting and enjoying tequilas and bikes because I want to enjoy my wealth.
Thanks Nick
Very solid guide-stay away from options!!!!!!!!!!!!!!!!!
When I first started to look at investing, I didn't think I would ever buy bonds. Well, you should be saving $50-100 for car maintenance, that roof going need to be replace in a few years, and the business cycle boom and bust every 7-8 years. Holding on to cash isn't very smart because of targeted inflation so where do you park your money? Bonds, I use bond etf a mix of money market (>1 year), short (1-4 years) and medium term (4-10) bond etf to eek out a bit of cash from my emergency fund.
Also, bonds are like crystal balls. What the mortgage rate if you buy a house? It the current rate of the 10 year T-Note +3% and +/- a little bit depending on the lender. It tells you if people are bearish or bullish etc. its simply more information.
Its also nice once you realize you have some stuff to leave behind for people you care about, like funding your own life insurance. I am just happy building a fort out of money.
This changed my life. I prioritized investing over a good quality of life rn. I knew this stuff but this hit different
best video i’ve ever watched
Thank you so much. This was tremendous. Learned a ton.
I kept feeling like he was going to get into a deeper conversation about a topic and then he’d just move on. We need more!
I’m sure you meant this comment as a compliment! but for those who are wondering why he was moving on or not going deeply into different topics - this video strikes me as a first pass, although quite thorough for it. It’s a landing page, a gateway. As he said, he wanted to keep things simple. It also keeps this video relevant and accessible for a wide audience. I imagine he’ll go deeper into different concepts in other videos, guides, etc
I've been a market participant for the past 20 years, which has certainly had its ups and downs. Everything said here is solid. The only thing I wish he touched on was the concept of rebalancing. With a partially defensive allocation of 70/30 or 60/40, when the equity side drops 20-30% (financial crash of '08, pandemic of '20), shifting some of that defensive capital in fixed income into equities is incredibly powerful in growing a portfolio. After recovery, shifting it back to defensive allocations solidifies the gain and helps protect against the next correction. You never know when the next one will arrive. Of course this only works if you have some allocation to fixed income.
haha I actually do need my Coffee machine! mine broke recently. Not only will it help make me feel better having my own espressos, also saves a lot in the long run getting take out coffee :) Thanks for the advice, Coffee machine here we come!
Love watching Nic’s videos! Presents everything well and breaks it down! Thank you
Thorchain and Maya protocol must take a look
Bonds and how to buy them would be nice to know. But my main question is: What about corporate bonds, i'd love if you could share some light on this
I know no one can have dates of everything to hand when the are speaking stream of consciousness. and not to discredit this , actually interesting and seemingly very intelligent and genuine person. the tulip bulb rise and crash was from approx. 1634 to 1637 . again not trying to nock Nicholas in any way shape or form, simply just wanted to point out an interesting thought he was talking through and it is just for reference for those who also found it interesting, that is all. I really like his videos and shorts.
lol, telepathic..unless the casino knows where the ball will land, that superpower wouldn't help much. I think you meant precognition when trying to predict the outcome of roulette or telekinesis to make the ball land where you want, chronokinesis to manipulate time, or probability manipulation. Thank you for the information, though; it was very informative.
I've not invested in bonds yet but I suppose I should start to. At the moments my investments are spread over 2 index funds, green energy projects and real estate mortgages.
I’m a data scientist (not in financial sector) but have a degree in quant finance and have made some money on swing trading but generally follow the same long term investment principles you talk about. I’m curious to hear your thoughts on using either a high dividend ETF or something like a buffer ETF as opposed to traditional bonds. Even high yield saving accounts can get you a good return nowadays, often comparable with bonds. Do you prefer them as they are simply “risk-free” or would you consider to use those instruments as your stocks part of your portfolio?
Pinging this thread -
Hi Ryan, data analyst here so nice to see another data enthusiast. interesting question - You mentioned a comparison using specifically a high yield savings account. One thing you should keep note in deciding what is best for you is to keep in mind of ‘Tax’. In the UK, regular savings account are subject to tax as opposed to a ISA savings account where the interest is protected from tax. You need to take all of this into consideration, including the fact how much of your money is protected in case the company or fund goes bust. Obviously, the safer it is, GENERALLY the lower the interest, regardless of investment type. Long term the ETF option is more likely to pay off in your favor, short term consider a tax protected high yield savings account, especially if you are nearing retirement.
Wait a second. Did I just learn something online that I am not going to learn online?
I used to use a modified more conservative version of graham’s formula to see what the intrinsic value of the company. Then I had another way I would come to this conclusion but I can’t remember what the formula was called. All in all they worked really good when I was investing personally in the stock market. I have to start investing into it again but I have a 401k and a Roth IRA that I put money into now for retirement and I want to work on my retirement accounts more maybe look at investing in another retirement account so I can make sure I can actually retire.
sounds like boomer advice until you consider most people lose miserably, in ALL MARKETS. Even in crypto, best bet is buy and hold, sell on a double. MOST PEOPLE LOSE MONEY
I’m always confused about how to invest because people retire to have a set amount to live off per year, correct? I’m a disabled veteran, and will get that for the rest of my life. Assuming I make it to retirement age, I don’t have much to worry about because I’ll always be able to afford a living (hopefully). So should I invest for fun money? Obviously also my children but does that mean I should have a different strategy?
Nicholas, i’m curious as to how you were able to invest while working for UBS as a registered securities professional?
How did you grow your portfolio while having compliance restrictions?
I would appreciate your comment!
Thanks
You can invest in certain index funds
Can we know who your tailor is? That´s a bold jacket Mr. Crown.
The irony of the line "why are dentists trying to become traders" is my dads a retired dentist and he dabbled into trading
Question: if you have an LLC, can you invest in the stock market?
Yes, companies (regardless of type) can have investment accounts (provided it’s in keeping with their stated purpose of the business with any filings they’ve made). But most choose to reinvest their profits into expanding their own business rather than investing in other businesses. (Unless that’s the purpose of the business, like mutual fund or such.)
@Nicholascrownyoutube I get that you recommend not picking individual stocks for armchair investors. My return right now is 64.52% increase for right now. I think i was luckier than most. Should i pull that and switch to indexes?
Yes because your winning streak won't last. You're not taking risk into account
personally invest around 70% of my income in an index fund. That's far more than recommended but I'm just not very materialistic AT ALL and if I didn't invest that money, I would literally not touch it anyway because I seriously don't spend much at all aside from bills. I will probably lower that number if my situation changes however.
This is really useful information. Unfortunately I have no spare income to invest. I'm working three jobs just to pay the bills, and my ex wife left me with four maxed out credit cards that I can barely make minimum payments on. I'm renting a trashy basement studio apartment and living off of about $20 per week for food.
The most important thing that should be on everyone's mind currently should be to invest in different sources of income that don't depend on the government. Especially with the current economic crisis around the world. This is still a good time to invest in various stocks, Gold, silver and digital currencies
Even with the right technique and assets some investors would still make more than others, as an investor, you should’ve known that by now, nothing beats experience and that’s final, personally I had to reach out to a market analyst for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I’m buying again
@@fosterwhales1027 Glad to have stumbled on this conversation . Please can you leave the info of your investment advisor here? I’m in dire need of one
The coach I use is actually quite known, Larry Kent Burton . He has a wide presence on the web and he's highly qualified and experienced in the financial market. He has extensive knowledge of portfolio diversity and is considered an expert in the field.
He's on Instagram ***
@ Larry Kent Nick Trading ***
With crypto, most of what I "invest" on the hyper risky coins is just earnings on various other coins. A smaller potential upside but even if I bust it's only house money, my initial outlay has been converted back into cash or index funds.
How much of your income should you allocate to investing?
I have 5 monitors and live near the beach so... lol.
This is good advice but USA centric because of the environment - follow this advice in the UK at your peril - property rules there.
I try to only invest money that I know by the end of my week would end up being spent on small dopamine-hits like buying junk I don't need on temu. It keeps me from taking too much risk and it aknowkeges I'm not great with money but helps me make better choices in a way that's sustainable for me and doesn't force me to cut out things that would make me miserable or make things harder.
ETF'S ETF'S ETF'S
OR buy a mutual fund or seg fund and let someone else make sure your portfolio is appropriately balanced.
Investing is not trading remember lads
It’s possible, but insanely hard my neighbor is a trader we are good friends and he is a trader bought a 10 million dollar beach house and trades every morning and has the day free but it dose come at a sacrifice of him having to wake up at 3am when the market opens Becuase he’s living in hawaii
Really good vid
Real estate was the middle class game
It's how everyone from the previous generation made money. Not from investing in securities. They weren't even allowed to do so
Nowadays it's used for clickbait but that's how it's always been
Good luck getting rich on 1.5% interest adjusted bond yields
Instead of buying a house in the 90s from a guy in a tough spot 80% of its value and having it triple over the next 30 years for a 300% NONLEVERAGED return WITHOUT CASHFLOW
Then you add in an 80% mortgage and it becomes 1500% cash on cash with a couple hunda every month in cashflow because the mortgage is only on 80%x80% = .64% of the value
Here’s how to get rich, or at least how I did. Start a business, spend first 5yrs to get to a high income and all debt paid off. Next 5-10yrs do not upgrade your lifestyle and aggressively invest 50-80% of your income. Try to get to 7figs liquid as quickly as possible, do it by 40 and you’re golden, let compounding do it’s thing. I hit a million at 40, now I’m around 3.5M at 44. Will sell biz when I hit 7-10M range. Goal is by 50ish
This is some very useful information I am damned grateful for it thanks for taking the time! My current investing journey saving to invest once I get an emergency fund set aside I’ll begin investing hoorah here’s a chance to look up a few bonds out there and treasuries while I’m saving
This is incredible. Clicked on this from your email newsletter, which was motivating af. Thank you so much.
just invest in long term "safe" companies that produce something of value, diversify loosely and don't touch it
Lovely Video Thank you @nicholas
Put a small (big if your old an blind I guess) tv under or over camera location I need eye contact to take ya seriously haha
The product that I sell that doesn’t work gets 100% returns. As in 100% of people return it.
So if I make only 60k a year. I can only invest 3k a year in either stocks and bonds. 3k is my risk tolerance.😂
VTSAX. Don't worry about risk. Invest as much as you can't and look at the balance in 20 years. You're welcome
This is amazing! One request, could this video be dubbed with Spanish audio? There are so many Spanish speaking people missing out on financial literacy and this video could help a lot!
"I'm am a sophisticated arbitrage trader" lol.
100% strategy, go all in on meme coins hahahhahah ;)
"... growth and inflation. Thank you, class. "
The S&P 500 is now hyper concentrated on 7 stocks, one of them Clearly on a massive Bubble, this is not the moment to invest on SPY, a few years down the line maybe, Treasury Bills are the best way to save in the short term. This is because most people will not be able to not Touch their investment as the value goes down 50% within a short time, even though it will inevitably triple 10 years after.
I have been day trading 4 years and I take it 100percent seriously!
All of this info was explained to me by the FC at my bank. And that's another way to invest, simply go to your bank and ask about the investment products available.
Real estate is poplular because 5% down gets you 20:1 odds on something with no call option that the federal government is incentivizing. Its high risk behavior without alot of the risk.
PIMCO with HQ in Newport Beach is technically trading by the beach though
They are owned by Allianz who certainly do not trade by the beach, they trade by the Mountain 😂
So the Beanie Babies aren't going to increase in value???
Props to anyone demystifying trading. I'm an engineer and was terrified of actually being an engineer. Turns out it's not that hard, you just need someone who's on the other side to provide a little insight.
I miss the _TH-cam_ guy with the *duffel bags full of cash* getting on his *private jet.* The real world is _boring._
Passive income (or near passive) is something I've struggled with. I want to beat inflation, but how do you do that? Currently, I am sitting on about $0.5M liquid that I want to generate a new income stream, but have yet to find anything attractive enough to commit. Suggestions? Initially, I wanted to go the commercial real-estate route, but with rental laws being what they are and getting worse, I don't see that as viable any longer.
My uncle has done extremely well with mixed use business locations. He did all the renovations himself and his son did the plumbing.
I'd pretend you're broke and get a cheap property and put some elbow grease in.
'Sophisticated arbitrage trader' managing a complex strategy.....
First of all lets get this straight-
Bro you started the video throwing shade at traders lol
Arbitrage is a trading technique that every cpa and mba is taught...
It's a pretty basic way of explaining 'trading' while exploiting the difference of instruments in other markets.
And yet none of them can make a living doing it. Do they?
You wana long the SPY and the Q's go ahead, I'm not knocking it.
Not everyone is cut out to be a trader.
You got all these licenses and the best thing you can tell me is to go long and hold?
All I hear everyday from people is trading is fake trading can't make you money
I can grab 10 points from the futures everyday...
I can grab a dollar out of spy everyday....
U add a little risk management and your desired position size and u can have yourself a little system going.
I risk 2 points to make 10 personally
Keeping a little 2:1 RR
But you're the guy with the licenses right? ;)
The stock market is like the gym-
You got people who are personal trainers licensed with NASM-
But it don't mean anything.
Doesn't mean they will get clients to train.
Doesn't mean they will even have a good looking body.
There's influencers running around with more pull in the fitness game and they don't need any NASM.
There's traders on youtube who made 70k last month
Im no name dropper but DesiTrades and Carmine Rosato both uploaded broker statements last month for like 70k.
You gota ask yourself why haven't YOU figured this out.
Trade the chart. Not your heart.
I bet this guy does the opposite of what he’s recommending in this Vid so he won’t be “Holding The Bag” when he Dips
You’re only worth 10 million according to online sources which tend to be inflated and it looks like you wrote your own Wikipedia article seeing as there’s no citations outside of other websites that have zero citations. Is there any actual proof you’re rich it sorta just seems like you came out of nowhere, if you were really that successful I feel like you would have been in at least one or two articles not written about you specifically
L imagine playing league of legends. Bro has no life.
in this day and age, you shouldn't be using a powerpoint / bulletpoint presentation style Nicholas. Comes across as a 40min rant and not very engaging. graphic aids or illustrations might help. good luck with your TH-cam journey! 🖖
Because smart investors do not need bright rainbow style til tok graphics like a 10 year old that is dumbing people down 😂
He’s dumbing down Benjamin graham.