Thanks for watching everyone! If you found this video helpful, then support my channel by giving it a LIKE and checking out my entire playlist of videos on investing with Fidelity! th-cam.com/play/PLscTZuOqKWIxSG8kRA7uxvJZQkz0q9Hko.html
5his is your fourth video that I’ve binge-watched. You’re the channel I’ve been looking to learn from as a new investor. You not only can explain the details clearly but you are able to tie it all together in a way that makes sense! You’ve got a new subscriber! Thanks for sharing the knowledge! ❤️
I have watched most of your videos and can't emphasize enough how good I think they are. I have a base of knowledge and have been saving for retirement for 25 years. But your knowledge and ability to explain things simply/thoroughly is outstanding. And your enthusiasm is contagious. Honestly... I don't even really NEED to watch your videos, but do because you are an inspiration. KNOW that many years from now, someone is going to look at their portfolio and say... "This is thanks to that TH-cam guy Jake... Wherever he is, thanks Jake." THAT will for sure be a legacy you leave behind. Keep it up.
Thanks so much BJ Graf! That's incredibly high praise and very motivating! Hopefully I can keep making easy to understand investing videos and more people will take away value and be able to financially secure their lives. Cheers!
My interest in investing started late unfortunately. I have a pension that starts in 5 yrs but have realized I would like some more passive income. Found your channel and I am hooked. Decided to rewind your videos and start from the beginning and I have been binge watching 👀. I really like the way you explain things. Been sharing with friends. Cheers 🥃
Jake, thanks for the wonderful informative videos. I have two questions - which website would you recommend for getting good evaluation and buy-sell recommendations? like yahoo finace? microsoft money? Second question is there any trading platform which will actually recommend a buy sell recommendation for stocks? Thanks again
Hey stabys! I like Schwab and Schwab gives equity ratings (A/B/C/D/F) which basically explains if they think a stock is a good buy or not. And for charting I just use Yahoo Finance. It's free and easy to use.
I think of it this way: The P/E ratio tells you if you are getting a bargain on the stock. Since you want to buy when the stock price is low (a lower numerator) and of course you want EPS to be high (a larger denominator) both these things create a nice low P/E ratio.
We might not have hit the bottom yet... but maybe we did. It doesn't matter, if you have money to put in a retirement account, it should be in stocks to take advantage of these lower prices. The stock market will recover like it always has.
Love your videos! But do have a question. I understand the avg 9.8% annual return over time. However doesn't the timing of when you start your "9 yrs" matter. If you start investing at the top of a run, will it not be challenging to pull a 10% return. Lots of newbies like me who may not consider the timing.
Hey Rafael! Of course, that 9.8% is a long term average. Depending on the market it could be higher or it could be lower. There are no guarantees. But reversion to the mean always occurs on a long enough time scale.
@@JakeBroe I must admit I'm becoming obsessed with your channel. You work ethic and passion is unmatched! Sincere thanks for the work you do and your service!
Corporate actions by companies such as STOCK SPLITS & REVERSE STOCK SPLITS may result in a BIG DIP / RISE being reflected on the chart. Its good to know if the dip is caused from poor management or an increase or reduction in the volume of shares. Citigroup big stock split 1 for 10 May 9 2011.
Hey Shane! You are correct. I feel like stock splits are pretty obvious because it is a steep vertical line. I do not think that is what happened with Citi bank though. Additionally, stock splits do not seem to happen anymore. All the largest companies for whatever reason (the warren buffet effect) see it as a good thing to have as high a stock price as possible. I look at share costs in the 1980s around the $1 mark for most companies and think that would make things easier. Buying fractional shares seems to be the work around to this.
Jake, as always, very informative. I have to admit though, some of these equations made my head hurt. That's on me though...I can't do math in public :-). Thanks again/Aloha. John
Thanks John! I will eventually make some more videos about the math and metrics of picking stocks. I am trying to make a lot of intro tutorial videos at the moment to build my video catalog base and then I'll get back to more technical content. Thanks for the comment and support!
A very interesting video, thanks! The Intel vs Microsoft comparison is very interesting. Right now, Intel looks like a loser, Microsoft looks like a winner. BUT.... this boom is hugely skewing the historical picture. e.g. If you had invested in MSFT in 2001 your shares would have only increased a dismal 1% over the entire next decade. i.e. you would have effectively lost money (and a lot of it) relative to other options for your money. You had to wait 15 years to see any real growth. :-( Which means that almost all of MSFT's massive growth has come in the last 5 years. Which means that even for a long-term investor, MSFT has been a very bad bet (because you couldn't have anticipated the late-stage growth: it's likely than even a long-term investor would have reallocated those funds long before MSFT made good.)
Intel IMO got very happy they were controlling the semiconductor market so much that they stopped innovating. They had no real competitors and now AMD and Apple are giving them a run for their money.
I am such an Apple fan boy. Anytime I have to use something not Apple, it basically upsets me at this point. I honestly wish I could just put all my money in Apple and admit I am a member of an investment death cult, lol. But my logical mind is too strong, and I'm not letting Apple be more than 10% of my stock holdings.
In the government TSP you cannot buy individual stocks. You can either buy the C Fund, which is an S&P 500 index fund, the S Fund which tracks every other company not in the S&P 500, and the I Fund, which is an international index stock fund. You only have 3 options and all are index funds.
@@gdamiano3295 , I have a brokerage account with Robinhood, USAA, Vanguard and Schwab. Right now I put all my money and investments with Schwab. I like their platform, they have no hidden fees, and their customer service is excellent.
Jake Broe Im thinking about opening up a TD Ameritrade accounting, I have a roth IRA with raymond james that Ive had since I turned 18, The only thing I dont like about it is that Im not able to buy/purchase/trade or sell stocks on my own, I have to call raymond james and talk to the people there and they do all of that, so honestly I feel like I have no personal control over my account, and also they charge management fees everytime I make a purchase on whatever, so Do you think it would be a good idea to go with TD Ameritrade because there is 0 commissions but I would also be able to actively manage my portfolio on my own and buy/trade stocks?
Well done sir .... Say, in addition to Apple and Microsoft being both great growth and dividend stocks what others did you come across in your research? BTW, any plans to do a TD Ameritrade platform review? Thank you!
Hey Louie! Thanks for the comment. I made two videos going over 20 stocks that I have chosen to buy in to at this time. th-cam.com/video/X6ybjXppVrY/w-d-xo.html th-cam.com/video/T6ediRwUUdM/w-d-xo.html Check those out! I also do not have a TD Ameritrade account, so I cannot review their platform.
What's up Jake. Apple is my biggest position in my personal account (has been for the past 3 years). In my IRA I have stocks and index funds (Mastercard is the biggest position in my IRA).
I probably will buy shares is both MA and Apple. I'm planning a video later this week where I will talk about my 10 "bust buy" stocks. I'm currently trying to build a 30 stock portfolio, but I'll give my favorite 10.
@@ScottLeRay , awesome! I am trying to build a 30 stock portfolio for diversification. I mostly only have 1 share of each, but I plan to contribute a lot of my salary this year as the market continues to rebound from the crash.
Nice video, question, what is your opinion of stocks AAPL, BMY, VZ, T, KMI, COP, IBM,CAT,JPM,ETP, and MO. I know some one that has over 100,000.00 dollars, and wants to invest in MO because of the Dividend. According to him, he says he can get 10,000.00 dollars in Dividends if he invests 107,000.00 in MO. I said to wait, let me check with Jake on this. I am wondering what the taxes this person would pay .
Yes and no. Most of the time, a companies growth is more important than their dividend yield. If a company pays a 5% dividend, but never grows, it will take you 20 years to double your money. For that reason I do not like pure dividend stocks.
I think it’s better to look at payout ratio. Price is determined by Mr Market and that can be misleading. Don’t forget rule of 72. 5% for 20 years is a bond. I’m certain a stock will fluctuate and guarantees one form of dollar cost average if yield is constant. If a 5% yield is give a do the company has an economic moat, I’d be looking.
kjansen777 thanks bro and one more thing Can u apply for a separate debit card for the brokerage account like if I transfer money into my brokerage account from my outside bank account I can don’t have to transfer my profits back to my bank account I can simply use the debit card and use my profits I don’t know if this makes sense plzzz guide me
Husnain Haider if you’re brokerage firm has a debit card then you can apply. Separate from the real issue you are mentioning. Realized gains. Is this taxable or no taxable account? You would be in the world of taxes and write offs or taxable earnings. Even though you mention profits, why don’t you let a positions dividend be reinvested? I personally wouldn’t be selling often or use a debit card much.
An "average" by definition is over a period of time. You need to specify. Over a 30+ year average, it is over 10% still even with the bad year we are having.
Thanks for watching everyone! If you found this video helpful, then support my channel by giving it a LIKE and checking out my entire playlist of videos on investing with Fidelity! th-cam.com/play/PLscTZuOqKWIxSG8kRA7uxvJZQkz0q9Hko.html
5his is your fourth video that I’ve binge-watched. You’re the channel I’ve been looking to learn from as a new investor. You not only can explain the details clearly but you are able to tie it all together in a way that makes sense! You’ve got a new subscriber! Thanks for sharing the knowledge! ❤️
Thanks so much wicked! Welcome to the channel! Great to have you with us. Glad my teaching style works for you. Cheers!
I have watched most of your videos and can't emphasize enough how good I think they are. I have a base of knowledge and have been saving for retirement for 25 years. But your knowledge and ability to explain things simply/thoroughly is outstanding. And your enthusiasm is contagious. Honestly... I don't even really NEED to watch your videos, but do because you are an inspiration. KNOW that many years from now, someone is going to look at their portfolio and say... "This is thanks to that TH-cam guy Jake... Wherever he is, thanks Jake." THAT will for sure be a legacy you leave behind. Keep it up.
Thanks so much BJ Graf! That's incredibly high praise and very motivating! Hopefully I can keep making easy to understand investing videos and more people will take away value and be able to financially secure their lives. Cheers!
Thanks!
Thanks for the generous support Theresa! I greatly appreciate it! Happy investing!
P/E ratio = Price to earnings ratio . You got it brother. Keep up the good work.
Thanks so much T&I!
You have no idea how helpful you have been to me
Haha, you are getting all the valuable knowledge now Nia!
I’m going to watch what is a stock, but I stayed for this one. Thanks
You have a gift for teaching.
My interest in investing started late unfortunately. I have a pension that starts in 5 yrs but have realized I would like some more passive income. Found your channel and I am hooked. Decided to rewind your videos and start from the beginning and I have been binge watching 👀. I really like the way you explain things. Been sharing with friends. Cheers 🥃
another awesome and informative video. thank you...
Thank you, Jake! I am trying to learn all this. It will take lot of time and efforts.
You are doing KM! Keep on going!
Wonderful explanation of the PE ratio. I really appreciate your teaching style.
Thanks for watching! More investing videos coming soon!
Jake, thanks for the wonderful informative videos. I have two questions - which website would you recommend for getting good evaluation and buy-sell recommendations? like yahoo finace? microsoft money? Second question is there any trading platform which will actually recommend a buy sell recommendation for stocks? Thanks again
Hey stabys! I like Schwab and Schwab gives equity ratings (A/B/C/D/F) which basically explains if they think a stock is a good buy or not. And for charting I just use Yahoo Finance. It's free and easy to use.
6x = sextupled (4:44). awesome informative video, thank you!
Haha, thanks Daniel! Cheers!
I think of it this way: The P/E ratio tells you if you are getting a bargain on the stock. Since you want to buy when the stock price is low (a lower numerator) and of course you want EPS to be high (a larger denominator) both these things create a nice low P/E ratio.
Exactly, Orange Monk! You know what's up!
Thank you
You are very welcome D! Cheers!
Might need to shift my TSP contributions to 100% C fund since stocks are "cheap" right now!
We might not have hit the bottom yet... but maybe we did. It doesn't matter, if you have money to put in a retirement account, it should be in stocks to take advantage of these lower prices. The stock market will recover like it always has.
@@JakeBroe yup! I am in the lifecycle 2050 fund currently, so most is going towards "C fund" funds anyway, so might as well go all in on the C fund
Love your videos! But do have a question. I understand the avg 9.8% annual return over time. However doesn't the timing of when you start your "9 yrs" matter. If you start investing at the top of a run, will it not be challenging to pull a 10% return. Lots of newbies like me who may not consider the timing.
Hey Rafael! Of course, that 9.8% is a long term average. Depending on the market it could be higher or it could be lower. There are no guarantees. But reversion to the mean always occurs on a long enough time scale.
@@JakeBroe I must admit I'm becoming obsessed with your channel. You work ethic and passion is unmatched! Sincere thanks for the work you do and your service!
@@BigBoyOtero , thanks Rafael! I appreciate you watching my videos! Don't hesitate to ask questions.
Corporate actions by companies such as STOCK SPLITS & REVERSE STOCK SPLITS may result in a BIG DIP / RISE being reflected on the chart. Its good to know if the dip is caused from poor management or an increase or reduction in the volume of shares. Citigroup big stock split 1 for 10 May 9 2011.
Hey Shane! You are correct. I feel like stock splits are pretty obvious because it is a steep vertical line. I do not think that is what happened with Citi bank though. Additionally, stock splits do not seem to happen anymore. All the largest companies for whatever reason (the warren buffet effect) see it as a good thing to have as high a stock price as possible. I look at share costs in the 1980s around the $1 mark for most companies and think that would make things easier. Buying fractional shares seems to be the work around to this.
Jake, as always, very informative. I have to admit though, some of these equations made my head hurt. That's on me though...I can't do math in public :-). Thanks again/Aloha. John
Thanks John! I will eventually make some more videos about the math and metrics of picking stocks. I am trying to make a lot of intro tutorial videos at the moment to build my video catalog base and then I'll get back to more technical content. Thanks for the comment and support!
11:27 E/P=1/84.8=1%(not 0.01%)
4:40 I don't blame you for not wanting to say it. It's a little risque
haha, i just blanked
Great Video!
Thanks, Jack!
A very interesting video, thanks!
The Intel vs Microsoft comparison is very interesting. Right now, Intel looks like a loser, Microsoft looks like a winner.
BUT.... this boom is hugely skewing the historical picture.
e.g. If you had invested in MSFT in 2001 your shares would have only increased a dismal 1% over the entire next decade.
i.e. you would have effectively lost money (and a lot of it) relative to other options for your money.
You had to wait 15 years to see any real growth. :-(
Which means that almost all of MSFT's massive growth has come in the last 5 years.
Which means that even for a long-term investor, MSFT has been a very bad bet (because you couldn't have anticipated the late-stage growth: it's likely than even a long-term investor would have reallocated those funds long before MSFT made good.)
Intel IMO got very happy they were controlling the semiconductor market so much that they stopped innovating. They had no real competitors and now AMD and Apple are giving them a run for their money.
I am such an Apple fan boy. Anytime I have to use something not Apple, it basically upsets me at this point. I honestly wish I could just put all my money in Apple and admit I am a member of an investment death cult, lol. But my logical mind is too strong, and I'm not letting Apple be more than 10% of my stock holdings.
Jake Broe hey I just got an iPad Pro. I see why people like apple.
How do you buy stocks in the tsp? Or do they automatically invest it for you in whichever fund you pick?
In the government TSP you cannot buy individual stocks. You can either buy the C Fund, which is an S&P 500 index fund, the S Fund which tracks every other company not in the S&P 500, and the I Fund, which is an international index stock fund. You only have 3 options and all are index funds.
Jake Broe oh ok thats what I thought, by the way have you ever had experience with TD Ameritrade or etrade or something like that? Just curious
@@gdamiano3295 , I have a brokerage account with Robinhood, USAA, Vanguard and Schwab. Right now I put all my money and investments with Schwab. I like their platform, they have no hidden fees, and their customer service is excellent.
Jake Broe Im thinking about opening up a TD Ameritrade accounting, I have a roth IRA with raymond james that Ive had since I turned 18, The only thing I dont like about it is that Im not able to buy/purchase/trade or sell stocks on my own, I have to call raymond james and talk to the people there and they do all of that, so honestly I feel like I have no personal control over my account, and also they charge management fees everytime I make a purchase on whatever, so Do you think it would be a good idea to go with TD Ameritrade because there is 0 commissions but I would also be able to actively manage my portfolio on my own and buy/trade stocks?
@@gdamiano3295 I have td Ameritrade. They're excellent. Very user friendly.
Well done sir .... Say, in addition to Apple and Microsoft being both great growth and dividend stocks what others did you come across in your research? BTW, any plans to do a TD Ameritrade platform review? Thank you!
Hey Louie! Thanks for the comment. I made two videos going over 20 stocks that I have chosen to buy in to at this time.
th-cam.com/video/X6ybjXppVrY/w-d-xo.html
th-cam.com/video/T6ediRwUUdM/w-d-xo.html
Check those out! I also do not have a TD Ameritrade account, so I cannot review their platform.
What's up Jake. Apple is my biggest position in my personal account (has been for the past 3 years). In my IRA I have stocks and index funds (Mastercard is the biggest position in my IRA).
I probably will buy shares is both MA and Apple. I'm planning a video later this week where I will talk about my 10 "bust buy" stocks. I'm currently trying to build a 30 stock portfolio, but I'll give my favorite 10.
@@JakeBroe I look forward to watching it. I currently have 11 companies in my portfolio.
@@ScottLeRay , awesome! I am trying to build a 30 stock portfolio for diversification. I mostly only have 1 share of each, but I plan to contribute a lot of my salary this year as the market continues to rebound from the crash.
Nice video, question, what is your opinion of stocks AAPL, BMY, VZ, T, KMI, COP, IBM,CAT,JPM,ETP, and MO.
I know some one that has over 100,000.00 dollars, and wants to invest in MO because of the Dividend. According to him, he says he can get 10,000.00 dollars in Dividends if he invests 107,000.00 in MO. I said to wait, let me check with Jake on this. I am wondering what the taxes this person would pay .
Dividend yield determines how much money the company has payed u back and the more dividend yield a company has the better its performing right?????
Yes and no. Most of the time, a companies growth is more important than their dividend yield. If a company pays a 5% dividend, but never grows, it will take you 20 years to double your money. For that reason I do not like pure dividend stocks.
Jake Broe makes sense
I think it’s better to look at payout ratio. Price is determined by Mr Market and that can be misleading. Don’t forget rule of 72. 5% for 20 years is a bond. I’m certain a stock will fluctuate and guarantees one form of dollar cost average if yield is constant. If a 5% yield is give a do the company has an economic moat, I’d be looking.
kjansen777 thanks bro and one more thing Can u apply for a separate debit card for the brokerage account like if I transfer money into my brokerage account from my outside bank account I can don’t have to transfer my profits back to my bank account I can simply use the debit card and use my profits I don’t know if this makes sense plzzz guide me
Husnain Haider if you’re brokerage firm has a debit card then you can apply. Separate from the real issue you are mentioning. Realized gains. Is this taxable or no taxable account? You would be in the world of taxes and write offs or taxable earnings. Even though you mention profits, why don’t you let a positions dividend be reinvested? I personally wouldn’t be selling often or use a debit card much.
Do you recommend an index fund like VTI?
Haha, you already saw my video today. Cheers!
Jake Broe yep thank you!
Very informative!! You should do classroom sessions@👍
Haha, thanks! I guess TH-cam is a form of teaching lessons.
What’s the market average right now
An "average" by definition is over a period of time. You need to specify. Over a 30+ year average, it is over 10% still even with the bad year we are having.
I'm not a profeshunul so I just invest in the market. Experts can't do it so what hope do I have?
Nothing wrong with just picking a good index fund and consistently investing long term!