Here it is, sorry for the delay. Thanks for the reminder. Let me know if I can help with anything else. docs.google.com/spreadsheets/d/1q1gkvkzQ0i6QRlwaKkKJ9g6t6xznlB-XtsQ8kpMQRUM/edit?usp=sharing
'if maths scares you'....... Sorry, to be an investor, learn to LOVE maths, not be scared of it. Because it is a VERY poweful tool. PS love that you Canadians say 'maths' rather than 'math'.
This was brilliantly explained. I could never concentrate this much in a 50 minute finance/investment class even if you paid me. Much appreciated all the way from South Africa.
I have a question. How could some companies be at a high stock price if their market capital is 0.0 and their P/E Ratio isn't listed? For an example the company called AdaptHealth Corp, stock symbol AHCO is $22.97 a share but has a market capital of 0.0 and has no P/E Ratio.
This company appears to have a market cap of ~3Billion. $23.12 share price X 130.91M shares outstanding = 3,026,639,200. You might be looking at a website that just does not have it listed. Market cap is always Price per share X number of shares outstanding. Note: I didn't go into the financial statements to get that shares outstanding I got it from guru focus which is occasionally slow to update so for best data I would grab this number from their most recent financial statements/SEC filings. Command + F will be your friend in those things. The company has no PE ratio because it is not currently profitable. Also, this is a worth while video for you to watch: th-cam.com/video/bH-bz1iIyy4/w-d-xo.html Thanks for your support!
Correction: Gold produces peace of mind and is a great store of value. Gotta have some financial insurance imo. Your correct though, physical gold doesn't compound or pay interest. Mining stocks are a different story of course. Appreciate your thoughts. Cheers
Sir how do I know or expect interest from buying stock whenever the stock is going up and down over and over gain? I really don't know anything about this but I took a risk to buy stock.? Do I need sale this stock to gain?
When you own shares of a company (AKA stock) it just means you own a small percentage of that company. So if the company does well you will too (as long as you didn’t over pay). In the short term the price will fluctuate because most people buy and sell on emotion or because of liquidity needs (not because of underlying value).
Hi, i have a question. You mentioned financial freedom, can long term investing become one's main occupation to the point they can quit their day job? If so, how does it go hand by hand with the principle that long term investing is all about buying and holding for many years? How can i generate income if i leave my stocks for years? What is the point if i am going to enjoy the money only when i am old? How can i generate steady income from long term investing?
2 ideas for you: Idea 1: If you're good you can become a money manager (modeling how warren buffett did it with his partnerships before berkshire hathaway). Most funds use the "2 and 20" structure, meaning they charge a 2% management fee on total assets under management and a 20% performance fee on profits. However, Buffett didn't take any management fee. Instead, he only took a percentage of the profits that exceeded a 6% annual return. Buffett's structure was "0 and 25," meaning he didn't take a base fee but took 25% of profits above a 6% return. Idea 2: Once you have ~$2m or so you can get a line of credit secured against your stock account and then live off your line of credit and just make interest payments on it. This allows you to avoid income taxes too. So you get to live off your assets without selling them (ever), and while still allowing them to grow and compound. This is essentially what all wealthy people do (and why you can hear stories about wealthy people paying less taxes than their secretaries). Hope this helps! P.S. if you want to increase your income the best way to make lots of money in my opinion is through sales and marketing. check out Scientific Advertising Claude Hopkins for an introduction.
@@IntelligentStockInvesting You also said in your video that if you had 2M$ and suppose you earned 10% in a year, meaning you earned 200k$, you would live off 100k and the remaining 100k you would put back into investing. I would like to do something similar and live off my earnings. Would it be something right to do? What percentage of earnings do you recommend on living from and what percentage to reinvest? In your video you do 50%-50%, is that a good balance? I'm asking this because one priciple in long term investing is reinvesting earnings so that they can be compounded. Another question, in that example in your video, the 10% earnings out of 2M$ that you mentioned, how would you make the earnings? I mean say you had stocks that gained 10%, how would you turn them into money. Would you sell some of the stocks? Would it make sense for me to sell 10% of the shares so I can turn the gain into money and live off of it?
I now believe it's better to get a line of credit against your stock account and live off the line of credit so you don't have to sell anything or pay any taxes. Same idea in the end but just a little better. It's similar to having a home equity line of credit on your house and living off of it.. but instead of the line of credit being secured against your house it's secured against your stock account. If you can't get a line of credit secured against your stocks than selling some to live is the next best thing.
@@IntelligentStockInvestingIs there any rule of thumb for the ratio between the amount to withdraw to the amount to reinvest? Is long term investing meant only for building up fortune for retirement or also for living from throughout life? Thank you very much for your answers!
Hey Roey, in my opinion, it's all about building up for retirement. Most people never retire... or, they end up living off a very small income from the government (just enough to survive) once too old to work. For everyone else, if you're "successful" you retire by age 55-65. I don't like the sounds of either. I'd like to have financial independence sooner than later. I don't have it yet, but once I do I'll probably continue to "work". Delayed gratification is the name of the game absolutely, but I still want to enjoy my life too. You have to balance it based on your goals and personal timeline for getting there. Some people may prefer to minimize expenses to the bare minimum and invest 80-90% of their income and get there faster. I suggest at least investing 10% of your income. This will get you there within 30-35 years if you're earning an average income and getting a mediocre rate of return. As for your first question on the rule of thumb for a ratio for withdraw vs. re-invest... first, as I said before, the best way to do it is by borrowing against the value so you don't need to sell and get taxed, and so the full amount can continue compounding. Before you quit your job, I'd suggest waiting until your total stock value is equal to 20x your desired annual retirement income... However, you may feel comfortable doing so once your stock value reaches 10x your desired annual income and just being a bit more frugal for the first few years of retirement. Once you're close you'll be able to feel it out for yourself.
What happen if I want to buy shares but no one want to sell? And more people want to buy for las price? What is happing? Everything stay unchanged until i maybe put an order limit (not market price but a limit that is much higher to make more attractive???)
If you put a buy market order in it will find an open sale order that is closest to the last price. You gotta be careful with market orders. If you put a limit order in at the last price, your order will not get filled if there is no sale orders at that price. Look at the bid and the ask price. These are where the closest open orders are on either side. For stocks or indexes that are traded a lot the spread between the bid and ask will be small. For stocks or indexes not traded often the spread might be huge. Be careful with market orders especially with smaller stocks.
@@IntelligentStockInvesting it will be great if you make a video more accurate, I would like to know what happen if I buy a lot of shares, no one want to sale, but company will make profit next 5 years. Will market cap go up? When nobody want to sale?... If profit it's not added to marketcap why is marketcap going down when a company is paying dividend?
If there was no trading activity at all market cap would not change. Market cap is just share price X shares outstanding. When a dividend is paid that’s money leaving the company so it’s worth less without that money it just distributed, and traders trade it lower accordingly.
Thankfully there is so much trading activity from the technical analysis kids and computers that lack of trading volume isn’t usually a problem. Also look up “market maker”
Thank you for sharing the knowledge budd!! quick question, did you leave the link for the spreadsheet?
Thank you again!!
Here it is, sorry for the delay. Thanks for the reminder. Let me know if I can help with anything else. docs.google.com/spreadsheets/d/1q1gkvkzQ0i6QRlwaKkKJ9g6t6xznlB-XtsQ8kpMQRUM/edit?usp=sharing
Hello Richard, you just made the best 1 video sum up of beginners in the hole youtube. THANK YOU
Amazing!! You’re welcome ☺️
I made my first million investing in stock as a beginner, excited , I'm looking forward to what next!
Fantastic!
'if maths scares you'....... Sorry, to be an investor, learn to LOVE maths, not be scared of it. Because it is a VERY poweful tool.
PS love that you Canadians say 'maths' rather than 'math'.
Haha!!! Making money using math and just your brain is pretty awesome 🤑
This was brilliantly explained. I could never concentrate this much in a 50 minute finance/investment class even if you paid me. Much appreciated all the way from South Africa.
Really appreciate this comment! Glad you enjoyed!!
Excellent video Richard
I don't regret spending 50 minutes watching this video.
As always keep up the good work 👍🏾
Thanks so much man. Really glad you enjoyed it and really appreciate your comment :)
Great video!!! Thank you 👏👏
My pleasure! Glad you enjoyed it :)
Fantastic video. Thank
You.
Thanks! Thank you, too!
In 2022, your investment in the S&P would be down 20%
I have a question. How could some companies be at a high stock price if their market capital is 0.0 and their P/E Ratio isn't listed? For an example the company called AdaptHealth Corp, stock symbol AHCO is $22.97 a share but has a market capital of 0.0 and has no P/E Ratio.
This company appears to have a market cap of ~3Billion. $23.12 share price X 130.91M shares outstanding = 3,026,639,200. You might be looking at a website that just does not have it listed.
Market cap is always Price per share X number of shares outstanding.
Note: I didn't go into the financial statements to get that shares outstanding I got it from guru focus which is occasionally slow to update so for best data I would grab this number from their most recent financial statements/SEC filings. Command + F will be your friend in those things. The company has no PE ratio because it is not currently profitable.
Also, this is a worth while video for you to watch: th-cam.com/video/bH-bz1iIyy4/w-d-xo.html
Thanks for your support!
@@IntelligentStockInvesting on M1 finance it shows that their market capital is 0.0 why would M1 finance do that?
@@sonny12681 I'm not sure 🤷♂️
only 701 viws, this video deserves much more
Thanks I think I need to switch out the thumbnail :) I appreciate it :)
Golden nugget sir!
Awesome :) thanks!
Correction: Gold produces peace of mind and is a great store of value. Gotta have some financial insurance imo. Your correct though, physical gold doesn't compound or pay interest. Mining stocks are a different story of course. Appreciate your thoughts. Cheers
Sir how do I know or expect interest from buying stock whenever the stock is going up and down over and over gain? I really don't know anything about this but I took a risk to buy stock.? Do I need sale this stock to gain?
When you own shares of a company (AKA stock) it just means you own a small percentage of that company. So if the company does well you will too (as long as you didn’t over pay). In the short term the price will fluctuate because most people buy and sell on emotion or because of liquidity needs (not because of underlying value).
I loved it
Hi, i have a question. You mentioned financial freedom, can long term investing become one's main occupation to the point they can quit their day job? If so, how does it go hand by hand with the principle that long term investing is all about buying and holding for many years? How can i generate income if i leave my stocks for years? What is the point if i am going to enjoy the money only when i am old? How can i generate steady income from long term investing?
2 ideas for you:
Idea 1:
If you're good you can become a money manager (modeling how warren buffett did it with his partnerships before berkshire hathaway).
Most funds use the "2 and 20" structure, meaning they charge a 2% management fee on total assets under management and a 20% performance fee on profits.
However, Buffett didn't take any management fee. Instead, he only took a percentage of the profits that exceeded a 6% annual return. Buffett's structure was "0 and 25," meaning he didn't take a base fee but took 25% of profits above a 6% return.
Idea 2:
Once you have ~$2m or so you can get a line of credit secured against your stock account and then live off your line of credit and just make interest payments on it. This allows you to avoid income taxes too. So you get to live off your assets without selling them (ever), and while still allowing them to grow and compound. This is essentially what all wealthy people do (and why you can hear stories about wealthy people paying less taxes than their secretaries).
Hope this helps!
P.S. if you want to increase your income the best way to make lots of money in my opinion is through sales and marketing. check out Scientific Advertising Claude Hopkins for an introduction.
@@IntelligentStockInvesting You also said in your video that if you had 2M$ and suppose you earned 10% in a year, meaning you earned 200k$, you would live off 100k and the remaining 100k you would put back into investing. I would like to do something similar and live off my earnings. Would it be something right to do? What percentage of earnings do you recommend on living from and what percentage to reinvest? In your video you do 50%-50%, is that a good balance? I'm asking this because one priciple in long term investing is reinvesting earnings so that they can be compounded.
Another question, in that example in your video, the 10% earnings out of 2M$ that you mentioned, how would you make the earnings? I mean say you had stocks that gained 10%, how would you turn them into money. Would you sell some of the stocks?
Would it make sense for me to sell 10% of the shares so I can turn the gain into money and live off of it?
I now believe it's better to get a line of credit against your stock account and live off the line of credit so you don't have to sell anything or pay any taxes. Same idea in the end but just a little better. It's similar to having a home equity line of credit on your house and living off of it.. but instead of the line of credit being secured against your house it's secured against your stock account. If you can't get a line of credit secured against your stocks than selling some to live is the next best thing.
@@IntelligentStockInvestingIs there any rule of thumb for the ratio between the amount to withdraw to the amount to reinvest?
Is long term investing meant only for building up fortune for retirement or also for living from throughout life?
Thank you very much for your answers!
Hey Roey, in my opinion, it's all about building up for retirement. Most people never retire... or, they end up living off a very small income from the government (just enough to survive) once too old to work. For everyone else, if you're "successful" you retire by age 55-65. I don't like the sounds of either. I'd like to have financial independence sooner than later. I don't have it yet, but once I do I'll probably continue to "work". Delayed gratification is the name of the game absolutely, but I still want to enjoy my life too. You have to balance it based on your goals and personal timeline for getting there. Some people may prefer to minimize expenses to the bare minimum and invest 80-90% of their income and get there faster. I suggest at least investing 10% of your income. This will get you there within 30-35 years if you're earning an average income and getting a mediocre rate of return.
As for your first question on the rule of thumb for a ratio for withdraw vs. re-invest... first, as I said before, the best way to do it is by borrowing against the value so you don't need to sell and get taxed, and so the full amount can continue compounding. Before you quit your job, I'd suggest waiting until your total stock value is equal to 20x your desired annual retirement income... However, you may feel comfortable doing so once your stock value reaches 10x your desired annual income and just being a bit more frugal for the first few years of retirement. Once you're close you'll be able to feel it out for yourself.
What happen if I want to buy shares but no one want to sell? And more people want to buy for las price? What is happing? Everything stay unchanged until i maybe put an order limit (not market price but a limit that is much higher to make more attractive???)
If you put a buy market order in it will find an open sale order that is closest to the last price. You gotta be careful with market orders. If you put a limit order in at the last price, your order will not get filled if there is no sale orders at that price. Look at the bid and the ask price. These are where the closest open orders are on either side. For stocks or indexes that are traded a lot the spread between the bid and ask will be small. For stocks or indexes not traded often the spread might be huge. Be careful with market orders especially with smaller stocks.
@@IntelligentStockInvesting it will be great if you make a video more accurate, I would like to know what happen if I buy a lot of shares, no one want to sale, but company will make profit next 5 years. Will market cap go up? When nobody want to sale?... If profit it's not added to marketcap why is marketcap going down when a company is paying dividend?
If there was no trading activity at all market cap would not change. Market cap is just share price X shares outstanding. When a dividend is paid that’s money leaving the company so it’s worth less without that money it just distributed, and traders trade it lower accordingly.
Yes you would have to increase your buy limit order until it became attractive enough that a shareholder decided to sell to you
Thankfully there is so much trading activity from the technical analysis kids and computers that lack of trading volume isn’t usually a problem. Also look up “market maker”
Awesome Videos my friend..!
Thanks man 🙌🙌
Richard, so you own ~115,378 dollars worth of Berkshire? Btw, this content is an answered prayer.
Correct! Thank you man I appreciate the kind words.
Just found you and your content is great. I hope you return!
Thanks omax, I appreciate it :)
I’m considering making a mini course on competitive advantages and assessing their durability