I remember going on a Peter lynch TH-cam video watching spree and I remember watching Peter Lynch return to CNBC and they asked him what stock or something that he considers is going to be a good investment , and he said NVIDIA was the stock that interests him the most. Dude is cracked even in his retirement, it also shows me that his success wasn’t an accident.
Lynch is easily the one I took the most from. I love his books because they’re so easy to read, it’s practical advice and he’s absolutely hilarious in parts lol. There’s beauty in simplicity and he’s like “know the story of your stock, is it growing? If they have no debt they can’t go bankrupt” just simple basics but they matter
@@mattderron absolutely agree his jokes are top tier Humor, I want to get into reading books do you have any recommendations for books on investing and general knowledge about life and how to make the most out of the time we have on earth?
In terms of investing obviously I love Peter Lynch's books (One Up On Wall Street is my favorite but they are all good). If you're already read those, "F Wall Street" by Joe Ponzio was really good, although more expensive for some reason on Amazon. "Essays of Warren Buffett" is really good too where they take his Berkshire annual letters and organize them by topic. In terms of life...that's a deep question. I'm sure there are many books that are good in this area but the one that comes to mind for me that I've actually read was "Essentialism" by Greg McKeown. I really loved that book and it spoke to me at the time I read it (I was still in my corporate career). Highly recommend that one.
@@mattderron thank you Matt I appreciate it. Yeah the life question was a little bit too deep to be answered in a YT comment section, but I appreciate your recommendation nonetheless. ❤️
@@shishkilover Life perspective: If you haven't read it, the original Millionaire Next Door (Danko?) is a quick read that helps set a realistic perspective on success. The Richest Man in Babylon also interesting (often can find a PDF online - it's an old book). I also enjoyed the Snowball book - biography of Buffett. Investing (along the lines of this video): Debunkery (Ken Fisher).
Hey Matt!! Happy Father’s Day to you Brother! I switched up my yearly plan with savings to buy NVDA when it split, and it’s already up 11% this week. It feels like a good two-year decision. Or ten-year decision, we’ll see. Thank you for everything you do and the measured balanced perspective you offer. All the best to you and yourn!
literally the only reason anyone would ever give you unsolicited financial advice is because they're trying to take advantage of you. ive concluded that investing is really simple and people overthink and overcomplicate it. i like warren buffets advice, invest in the broad market, never sell, dont buy anything you wont keep for 5+ years. i feel most people get into trouble by thinking too short-term. every dip ive experienced so far, i just waited it out, and eventually got back to profit. Also, individual stocks are a waste of time
Famous investors' investing sayings are generally true, but not always true. The real Wisdom is knowing which saying is applicable for each situation. For example, you could hear two famous sayings contradicting each other, how do you know which one is the right one to apply. Therefore, remembering the sayings is not enough, we need to learn the wisdom of applying them.
Thank you for another great video! I think the essence of this video is to incorporate learnings from the past and fit them into sound mental models. One challenge with NVDA-type stocks - we don't know the long term potential of the stock. AI will certainly transform "white collar" jobs, but the exact impact and ramifications seems very difficult to accurately and quantitatively predict.
hi i have question about Hsa if i live in California. Can you explain what are the difference? 1. i wonder can i use this for my tax deduct when i do income tax? 2. if i sell the stock that i invest but i dont put dont use it yet do i have to pay tax ? sorry it is not what you said in youtube but i have this questions please help
These kind of questions are best asked to a tax professional (I"m not one) and I don't live in California so I don't know if there are different rules there. In general, HSA's are tax advantaged accounts related to health expenses. When you contribute to them during the year, you can usually deduct your contributions on your taxes (every situation is different though). If you are investing money in a HSA and buying / selling stock it's normally not a taxable event. However, any distributions you make from your HSA may be taxable if they're not for an approved expense. Again, this is just my general understanding of HSA accounts, always ask a tax professional for your specific situation.
Yes, not buying at all time high is not the best advice imo, especially for a stock taking off. You have to jump in at some point or miss the boat. It’s a sign the company is doing well. As you said, it speaks to its value not price. Loved that! 👊 Happy Father’s Day! 🎉
The one striking commonality between the worlds best investors like Peter Lynch, Warren Buffett and Bill Ackman is they consistently buy and hold companies which have extremely high moat, brand value, specialized business lines, high barriers to entry, and consistent revenues even during hard times. It’s the reason why Costco stock has traded at a premium well above its fair value for decades, has experienced little volatility and has compounded returns at close to 18% annually for close to 30 years. If you can find a company that’s an apex predator meaning the likelihood of them having competition or being disrupted is extremely low then you don’t need to go bargain shopping at the bottom of the barrel using P/E and DCF valuations to find your investments. Unpopular opinion but a lot of companies trade below their intrinsic value because the market isn’t willing to pay a premium for them.
Agreed, I’m if the opinion that for the most part (there are always exceptions) stocks that trade for “cheap” are doing so for a reason. It’s not because people don’t have all the same DCF calculations as the rest of us lol
For the most part yes pertaining to companies which have a high amount of debt and whose revenues are sensitive to consumer and business spending (and borrowing). There are some as well who do very well in higher rate environments because there’s certain businesses who will make money regardless of what’s happening in the economy think Wal Mart, Costco, Waste Management etc
I very much appreciate your post as well as your wisdom. I've been investing in stocks now for about five years. When I started, like many other investors, I wanted a deal... I only considered cheap companies that Warren Buffet would refer to as cigar butts, companies with one last puff left in them. In my case, this was not necessarily a bad thing... I didn't know what I was doing and many stocks around that time actually fell in value while my cigar butts held steady. Since my initial investments, I educated myself and thus knew enough to sell my cigar butts (about two years ago). I bought some great companies, thereby doubling my money. My thoughts on the matter is... it is crucial to educate yourself and learn how things work before you commit yourself... go slow until you know what you are doing and DO NOT LISTEN to the experts... make up your own mind after research. Investing is an art as well as a science, so learn and go with your gut. Once again, thank you so much for your sage advice!
Couldn’t agree more, many people look to others for answers when really it’s about building up enough confidence within ourselves to understand what we’re trying to accomplish with it
Great insights, as usual. But I wonder if buying at all-time highs applies more so to indexes. I would think entry price matters more to individual stocks, for the same reasons that timing matters more. Curious to hear your thoughts. Your insights made me think of the old age debate on Value vs Growth. As a believer in the efficient market hypothesis I think investor consensus on a stocks future growth is factored accurately in its current price. Which is why value investing never appealed to me, because it requires going against the consensus to say that cheaper stocks will actually grow more. However, to what degree is pricing affected by the popularity of market cap indexing. The "top heavy" trend is concerning, and I wonder to what degree its caused by indexing, if any.
Yes, I mentioned this in a different comment - it's more likely to be true with indexes because people are just constantly buying. For stocks, many will just move on to another company and never buy at higher levels. But I think again this shows an interesting behavior. The indexes are always adjusting weight to be higher for the most successful stocks. They literally don't care about all-time highs either and yet they are the "best performing option for most people" so maybe there's a lesson in there. For me at the end of the day it's simply what I've been saying in my videos as of late - getting a good price when you buy is secondary to picking the right companies over the long-term. The indexes prove this as they constantly "pick the right companies" by adjusting their weight to the best performers, not the ones "at the best value." It's fascinating to see how human nature pushes us to focus on "did I get a good deal today" over "is this the best company I can buy today." But I don't know, that's just my thoughts on it 🤷🏻♂️
@@mattderron That makes sense since indexes are not "traded" as much as individual stocks, mainly bought and held. Sounds like you are as skeptical of "Value" investing as I am. I do think the success of cap weighted indexes makes a strong case against value. If one were to make an index that weights "undervalued" stocks more as they get cheaper, I bet it would fail miserably. The momentum factor appeals since it's essentially Growth on steroids (SPMO, XMMO). They have high turnover, a non issue in a tax sheltered account though. Seems less effective with smaller caps though.
Yeah I think it depends on what you consider "value." I think I disagree with how most people I interact with online see "value investing" which is this traditional Buffett / Graham "valuation matters" mindset of always wanting to "get a good price." I simply disagree that it's the most important criteria when you're talking about a long-term growth portfolio. For example, I saw a comment from someone who listened to my Hershey episode (where I sold) and it was something like "this investor doesn't like stocks which are out of favor which is where real generational returns come from." I completely disagree with that statement. If we're talking about long-term returns and not shorter term swing trades...buying Hershey at an amazing price likely won't perform better than say...buying Amazon at a premium. Buying at a good price doesn't trump the business that will actually compound over time faster. Obviously there are always caveats to this and different timeframes when it's true, etc. But in that particular example - yes I am skeptical. Buffett didn't crush his Apple trade because he bought it at a good price. He did buy at a great price and that helped. But he could've bought it a year later after it doubled and it still would've been a 5x trade. It just so happened it ended up being a 10x due to his great timing. The key though....was to buy Apple instead of something else that was trading "at a great price."
@@mattderron I agree, the goal should be to pick the right companies, getting in cheap is just nice if you can. When I delved into picking stocks I often identified good companies but never moved on them because they were "expensive" according to valuation metrics. So I ended up on the sidelines with a long watchlist that always went up. Perhaps its because of the overarching goal to "buy low, sell high". Maybe it should be "buy now, never sell till you need the money".
Fantastic video! Well done, Matt! One thing that stands out to me is the importance of a good understsnding of a business and its growth potential rather than just valuations that often give one misleading signals (overvalued/undervalued business).
Agreed, IMO understanding the business and growth outlook is the most important part of the analysis (assuming your focus is long-term returns). For other styles of investing (income only, retirement) it will be different obviously.
Always consistently buy. That way, you will always be buying the dip and when its at the high, so you will always hit the average. Investing is a game of information and patience.
If you want to go into medico consider splitting between Novo and Eli can be a good bet (the two leaders in diabetics and weight loss). Not a recommendation, do your own diligence - the two have done very well, are very well run and have long positive track records. Worked for me. YMMV.
Perfect timing, I just sat down with a gin tonic 🙂 Great points, bottom line is to educate ourselves and follow a strategy that suits our goals. It can be hard work to own individual companies, or easier work choosing ETFs, everyone should find what suits them best and forget the noise that surrounds us. Cheers!
Thank you for another great video. Your content is a beautiful mix of stock talking, super value info about things/thoughs related to stocks and your personal experience with investing and life in general. This channel is a gem. Greetings from Mikael, Denmark
I’m glad I stumbled upon your channel. It gives good perspective from all angles and not trying to hype up one specific stock/sector. For the first time in my life I finally managed to invest in stocks (40 years old starting late) but I got caught up in TH-camrs telling me oh this is the one stock to get it’s going to blow up so get in now. It’s like jumping into Gamestock. Yes some made a ton of money but most everyone else lost because we aren’t professionals. I put $10k into one stock and lost almost 33% by not doing my own research. I ended up selling because it just felt wrong and reinvested into VOO, SCHD, some t bills and while it’s less exciting I managed to make my lost money back so now it’s just upwards and onwards from here. Cheers!
That’s awesome, never late to start. Everybody learns a lot at the beginning and makes mistakes so don’t worry about it too much. Glad to hear it’s turning around already for you!
Two comments. First don’t confuse investing and trading . Or even gambling. All three can be done with the stock market. And another famous saying is don’t change a trade into an investment or an investment into a trade. Investing imo should only be done with at least baskets or indexes of stocks. Trading almost always is done on an individual stock. Second point is that you are right , no one knows the future. This is why dollar cost averaging is a good concept. And when a stock is at an all time high , even if ,you leave some “money on the table”, I think it is a good idea . Hope you finished that drink you look like you were enjoying. And oh, happy Father’s Day
The graph showing buying at ath having better returns is fascinating. I'm not sure I understood the underlying reason though, sorry. Hoe does it get a better return if the final value is the same? Mathematically are you not making the x% difference in more profit in final price, if you buy at x% lower?. Enjoyed the video regardless of you confusing me on that :)
I think it's because if you wait for the dip, you may be waiting an awfully long time while the market grinds higher. So when you do get that dip, it's already much higher than the ATH 5 or 6 months ago. For example, the index is at 100 Jan 1st, but I think it's ATH is too high so I wait to buy at 90. The market moves slowly but inexorably upwards until July & hits 130. I'm still in cash. Then it drops 10% to 117. I now have to decide whether to buy or wait for it to drop lower. If it doesn't go lower I'm screwed, so I buy. Then it continues to go up & ends the year at 135. My gain will be 15.38% for the year. Had I bought at the ATH in Jan, the gain would be 35% This scenario is most likely in a bull market. In a sideways to down market, waiting for a dip could work in your favor. The difficulty is making the right call on the trend.
Yes this is my understanding of it..."waiting" means you miss out as it goes higher before you eventually buy. Now I'm sure this is more true when trying to buy indexes rather than individual stocks (because many people will likely just move on to another company instead of buying higher), but still...was interesting to see the chart
I’m a beginner. I’ve heard to place “stop loss” on each stock. Ive been coded as a pattern day trader so that’s gonna be complicated, especially if I “buy”, then my stop loss order is filled. So my next option is to get assets with “inverse exposure” to the market.
Honestly, stop losses should be used more for folks who are actively trading their stocks. If you're a beginner trying to invest for long-term returns it's easiest to start with just putting money into a market index fund like VOO or VTI and starting there. If you really want to invest in individual stocks, pick some high quality companies that you know (not penny stocks or meme stocks) and get in the habit of investing consistently over time. IMO stop losses are a complication that shouldn't be necessary when you're starting as long as you're putting your money into something with long-term potential.
@@mattderron ok, that makes sense! I have schwab. I have schd, schg. I love reits for some reason, so I have a few of those, and for high quality companies I have a couple of those (like “you know who”😂). Sold off my “inverse stock” and made room for my foundational etf. Yeah, had to rearrange some things as I started learning and being aware of certain things.
I like you talking about buying at all time highs. Generally more then half the time I am buying a stock at all-time highs (after I've done a lot of research on the stock of course) and I think it has almost punished me once. Nvidia is an example as you said of a stock I have bought in all time highs. Visa and Mastercard are stocks I am also looking into buying in right now even though they are at high prices (not as high as maybe a few months ago) I think as you said value says a lot more then prices. I also remember all the hate you got for buying AAPL and I just bought a lot of it recently and it did pretty well. So I don't think people know exactly what will happen and just wanted to say you have great analysis and continue believing in your own research.
Agreed, no one knows. It's easier to sound smart saying things like "this isn't a good value right now, I'm waiting" than it is to say "I don't know what's going to happen with price, but this is a strong winning business, so I'm buying"
What is your portfolio’s guiding principle on diversification? For example why do you need to own LuLu when that capital too can be allocated to Amazon or NVidia ?
I don’t have to, I think there’s an opportunity there. But to that point I wouldn’t be surprised if my portfolio got smaller from the 12 stocks I have now to closer to 8-10 over time. I have no guiding principle on diversification, I don’t focus on it at this stage
@yourboyfriendDeftie Fairly priced is an opinion of who is examining it. By standard metrics, P/E ratio is too high, so by that standard it is over priced. However, right now, they have little or no competition so they have outrageous pricing power and profits. The competition, such as AMD, and others will most likely change that. The question is, how long will this last? A.I. is such a driving force demand for NVDA chips will be high for the foreseeable future. How long is anybody guess.
@@RS-lw9cd while I somewhat agree, it is my opinion that the market is exaggerating A.I. in all of its aspects. Such things in the past have always been catastrophic
@@yourboyfriendDeftie Glad to hear your view/opinion/perspective. Nobody knows what will happen the future. I am bit more optimistic on NVDA. I have already seen A.I. replace people in the workforce and I think this will continue. Although not good for those people that lost their jobs, it will reduce costs for those companies, which will drive the stocks higher...and the only real source of A.I. chips are from NVDA since all the other companies are playing catch-up. That is why ALL the companies, especially the large ones are looking to A.I. to reduce cost and increase efficiency, even though these companies have to buy NVDA chips to do so. But, that is just my opinion. I can easily be wrong. Only time will tell. Good luck to all of us in the future (including you and I)!!!
That chart was surprising,buying at all time highs outperformed a lot May 31st I bought 50 shares of Amazon and 50 shares of Google at okay prices IMO but seeing that chart makes me feel a little better
It’s most likely because waiting for a pullback means that you miss a lot of the gains in a rising market. Ie “this is so overvalued” then it goes up 50%, then comes down 10% and you buy. You missed a major part of the move. Anyway, that’s my guess as to why it’s so much worse in terms of performance. In reality it may not be as bad.
My personal main problem with the investing community is how content creators and viewers seem to think only their way is the holy grail of investing, and everything else is misguided and crap. When in truth most styles seem to work mostly because of the traits where they intersect, like being long and not buying expensive crap and so on. So all the other minutia just comes down to what fits your mindset, age and style.
Totally agree, I try to show different sides as much as possible in my videos, but you're right. There are some basics but many approaches can work. All depends on what you're looking to do and what's important to you
@@mattderron which is why I enjoy your channel so much. I don’t even know if we have a similar investing style (I’m new here), all I know is you just speak common sense and that’s a breath of fresh air as you aren’t trying to sell a certain way of investing, while claiming everything else is doomed to fail.
The next two weeks present a critical juncture for Nvidia (NVDA). Historically, the company's stock price has exhibited a propensity to decline following a stock split after a two-week period. However, it is essential to consider the contemporary market environment, as Nvidia's current circumstances diverge significantly from those of previous eras. The company's robust financial performance and its position at the forefront of artificial intelligence development may serve to mitigate against any post-split price depreciation.
I bought WCBR based on your research. I understand you were not recommending anything. It's been interesting to watch. I only did a few hundred dollars just to watch the individual stocks. As you know it hasn't done well. What I learned... for me, if I invest in cybersecurity going forward, I'llbuy a couple of the individual stocks. Crowdstrike and maybe Palo Alto. But I wouldn't know that had I not experimented with the WCBR ETF. SW in general is not doing well and AI is going to be big in that arena.
There is a video/article/podcast every day of the year every single year predicting the "next" market crash is "now". Early 2023 (as mentioned) it was everywhere on all media channels. Fortunately, I stayed the course and 2023 became my best year ever. Go figure...
I recently found out about your channel, great content Matt. I am 38 and just started investing the past year or so. My portfolio contain 20% VOO, 20% SCHD, 5% SMH 5% SOXQ, 10% VGT , 10% QQQM and 30% TQQQ. Thoughts?
Thank you! In general it’s hard for me to answer portfolio questions without knowing your risk tolerance; time line all that stuff. The only question I would have is why TQQQ? I know it’s the 3x leveraged long QQQ but my understanding is that it’s more for traders as opposed to long term holding. Plus you also have QQQM in there, so just curious what your thoughts are for TQQQ?
Your money, your portfolio, your personality, it's your problem dude! Quit asking complete strangers your personal questions. It's like asking someone you just met on the street, in the supermarket aisle, or in the cafeteria, who you should marry and you start telling them the attributes of the potential candidates whom you are considering 😂😂
Matt, my reasoning behind TQQQ, I have done a lot of research, it is risky but also very very very unlikely to go to 0 which will be the only thing that will kill this etf. Otherwise, I am planning to DCA it for 10 years, if by then I did a very good profit I will sell it all and move it to other regular etf, if its super down by then, I will continue dca until it goes up again. I am certain it will eventually go up since it tracks the Nasdaq 100. The reason why having also a regular QQQM is because I kind of treat it as a separate portfolio with all the other regular etf and I really like QQQM and believe in the technology, if I made a mistake with TQQQ I am ok to loose that money and at least tried. After researching though about tqqq, even after it fell drastically in 2020 and 2022 it still could give me better return then the VOO for example. To the other dude that commented here - what was I thinking to myself asking portfolio question this guy that talking about the stock market?? So silly of me! I really don't know what I was thinking 😂. Dude, you can learn something from everyone, even from homeless in the street. I will always analyze, check and investigate myself hours days weeks and months but it is always good to see what other people think. When listening to someone with a long speech for example, it is enough to take one little thing that you learn and it was worth the whole speech. No matter what anyone will tell me, I will investigate tons after myself. I am already married thanks for the advice though, wishing you health.
What about telemedicine AMWELL selling for 40 cents with hardly any Debts and 2-3 billion in cash from last 2 years atleast? Debt free might not just a good criteria to buy stocks even though it is a disruptor.
It's not something I would be interested in personally since they're not profitable (operating income < 0) and in general something like this trading under $1 isn't something I would be buying myself. But obviously, to each their own as long as they understand the risks
I’m 34 and I manage our retirement. I have our money invested in index funds (VOOG, FSELX, and VGT). There is overlap in the holdings, but technology is the future, so I feel comfortable. I’m outpacing the SP500 thanks to the semiconductor AI bull market. Semi market is expected to grow to 1T by 2030 and are the backbone of all technology. Reliance on semiconductors was made loud and clear during covid, and I think thats what gathered so much attention in the last 4 years. My personal investing account is invested in growth stocks that arent a major holding of my retirement index funds.
My smallest holding a micro cap biotech competing against the likes of Lily and Madrigal for a first to the market liver disease inhibitor down 12% Thursday and down another 13% today on no news. Time in the market ain't helping that dog! Kodak part 2! 😂 You just gotta shrug your shoulders. Happy Fathers Day Matt.
Over 20 years of investing timing the market will give you only 0,2% If you are not a trader then buying stocks at all time high will give you bigger return in the long run. Its like starting pedaling on a bike from the top. Its so called a "Pump"
Real investing takes so long to make a decision, the longest one took me 6 months to read through its financial papers and Instead of finding reasons to buy I find all the reasons not to buy its stocks, then you gotta go through its fundamentals, short selling fundamentals, intermarket analysis, stock structure. It's a total bitch to do. Last 7 years of doing this, I could only find 5 companies🤷♂️ Sometimes, I have a hard time understanding how some people can buy so many stocks amd analysis so fast. I must suck at what I do
I guess it depends on how much effort / how many things you’re looking at. I always feel like every stock has trade offs none ever look perfect. It’s about which trade offs you’re ok with or think aren’t a big deal
@@mattderron l spend every min of my free time while not working or attending to social gatherings reading and researching for the last 7 years. Right now I'm trying to learn the financial sector and that sector is almost 10 times harder then tech, mining and manufacturing companies. Don't really have much of a choice though because insurance is one of those things thats not really elastic and mandated by law if you drive so theyd most likely to have some pricing power.... and this inflationary environment is most likely going to stick around based on 780 years of history (data from Bridgewater associates) what breaks the backbone of low interest rates is either a war or a major pandemic now we have both. Could be different this time but boy is history not on our side.
Stop beating yourself up over your indecision. Even warren buffett makes the exact same "mistakes", he openly admitted the greatest investment blunders are not those that he bought and sold at a loss, but those that he didn't buy and they eventually catapulted, and he quite eloquently calls them errors of omission rather than of commission.
@hulkman4004 you do capture all the upside along with junk and great companies but you also capture all the downside along with the junk and good companies it didn't make much sense buying so much junk. Right now the markets being held up by 4 companies
ETFs work really well, and your reasoning (not wanting to keep track of individual stocks) makes perfect sense. Glad you found something that works best for you!
I Like, ETF/ CEF's WITH,.. the Magnificent 7,.. IN them ! Here are some Option income Funds, Paying Monthly Div's that, I LIKE,. ETW, ETV, EXG, ETY and,.. CSQ I will continue to, HOLD,.. THESE !
As long the nvidia ceo is alive i will hold those stocks. Im up 84% IA market size in 2030 US$826.70bn in 2024 US$ 184.00bn. But im start to invest in tech etf
If I had held on to my Nvidia shares I would be sitting on 1.2 million bucks today, but I let the macro and fearmongering get to my head. Lesson 1.- Think for your own damn self. Lesson 2.- You know what is best for your own damn self. Lesson 3.- Good quality profits compound upon themselves, let them do the magic.
For sure, these are good lessons. We all have stories like this I feel like. I had one of my own, I talk about it in one of my old videos (My Million Dollar Mistake or something like that). It happens, it's life. We just keep learning and keep swinging.
@@mattderron inflation is about redistribution of wealth not about getting richer. But back to assets. Those with overpriced assets can switch (buy/sell) those assets with other overpriced assets of others. Will they be richer? No, they won't. And those who have no assets before are at the same level too. They don't have any assets before and they don't have any assets now as well. The only way we are getting richer is that we save, invest and reinvest. Otherwise the central bank can just print for everybody e.g. 1 million USD and we are all rich right now.
@@ondrej2904 I don’t know where you got this idea that I said “it will make you rich” I simply said people who have assets will be in a better position than people who don’t. Because they will have assets that rise in value while those who don’t are constantly in the income chasing or paycheck to paycheck mode getting impacted by inflation. Inflation is not about “redistribution of wealth” it’s about a growing money supply that increases the prices for everything. Everyone is impacted, but those who have assets that also increase in price / value are impacted less because they are also benefiting and not just being negatively impacted
I remember going on a Peter lynch TH-cam video watching spree and I remember watching Peter Lynch return to CNBC and they asked him what stock or something that he considers is going to be a good investment , and he said NVIDIA was the stock that interests him the most. Dude is cracked even in his retirement, it also shows me that his success wasn’t an accident.
Lynch is easily the one I took the most from. I love his books because they’re so easy to read, it’s practical advice and he’s absolutely hilarious in parts lol.
There’s beauty in simplicity and he’s like “know the story of your stock, is it growing? If they have no debt they can’t go bankrupt” just simple basics but they matter
@@mattderron absolutely agree his jokes are top tier Humor, I want to get into reading books do you have any recommendations for books on investing and general knowledge about life and how to make the most out of the time we have on earth?
In terms of investing obviously I love Peter Lynch's books (One Up On Wall Street is my favorite but they are all good). If you're already read those, "F Wall Street" by Joe Ponzio was really good, although more expensive for some reason on Amazon. "Essays of Warren Buffett" is really good too where they take his Berkshire annual letters and organize them by topic.
In terms of life...that's a deep question. I'm sure there are many books that are good in this area but the one that comes to mind for me that I've actually read was "Essentialism" by Greg McKeown. I really loved that book and it spoke to me at the time I read it (I was still in my corporate career). Highly recommend that one.
@@mattderron thank you Matt I appreciate it. Yeah the life question was a little bit too deep to be answered in a YT comment section, but I appreciate your recommendation nonetheless. ❤️
@@shishkilover Life perspective: If you haven't read it, the original Millionaire Next Door (Danko?) is a quick read that helps set a realistic perspective on success. The Richest Man in Babylon also interesting (often can find a PDF online - it's an old book). I also enjoyed the Snowball book - biography of Buffett.
Investing (along the lines of this video): Debunkery (Ken Fisher).
Hey Matt!! Happy Father’s Day to you Brother! I switched up my yearly plan with savings to buy NVDA when it split, and it’s already up 11% this week. It feels like a good two-year decision. Or ten-year decision, we’ll see. Thank you for everything you do and the measured balanced perspective you offer. All the best to you and yourn!
nice, NVDA has been fun so far. Will be interesting to see what happens with it over the next couple of years
literally the only reason anyone would ever give you unsolicited financial advice is because they're trying to take advantage of you. ive concluded that investing is really simple and people overthink and overcomplicate it. i like warren buffets advice, invest in the broad market, never sell, dont buy anything you wont keep for 5+ years. i feel most people get into trouble by thinking too short-term. every dip ive experienced so far, i just waited it out, and eventually got back to profit. Also, individual stocks are a waste of time
Famous investors' investing sayings are generally true, but not always true. The real Wisdom is knowing which saying is applicable for each situation. For example, you could hear two famous sayings contradicting each other, how do you know which one is the right one to apply. Therefore, remembering the sayings is not enough, we need to learn the wisdom of applying them.
100% they are all correct in the right context, it’s a question of what context is important to us
@@mattderron context is the right word!
Yes! 🎯
Matt how do I get in touch about a collaboration and sponsorship?
Thank you for another great video! I think the essence of this video is to incorporate learnings from the past and fit them into sound mental models. One challenge with NVDA-type stocks - we don't know the long term potential of the stock. AI will certainly transform "white collar" jobs, but the exact impact and ramifications seems very difficult to accurately and quantitatively predict.
This channel is a real gem! Thank you for your insights, I found this video super useful.
Thank you, much appreciated!
hi i have question about Hsa if i live in California. Can you explain what are the difference? 1. i wonder can i use this for my tax deduct when i do income tax? 2. if i sell the stock that i invest but i dont put dont use it yet do i have to pay tax ? sorry it is not what you said in youtube but i have this questions please help
These kind of questions are best asked to a tax professional (I"m not one) and I don't live in California so I don't know if there are different rules there. In general, HSA's are tax advantaged accounts related to health expenses. When you contribute to them during the year, you can usually deduct your contributions on your taxes (every situation is different though). If you are investing money in a HSA and buying / selling stock it's normally not a taxable event. However, any distributions you make from your HSA may be taxable if they're not for an approved expense.
Again, this is just my general understanding of HSA accounts, always ask a tax professional for your specific situation.
Yes, not buying at all time high is not the best advice imo, especially for a stock taking off. You have to jump in at some point or miss the boat. It’s a sign the company is doing well. As you said, it speaks to its value not price. Loved that! 👊 Happy Father’s Day! 🎉
Thanks!
The one striking commonality between the worlds best investors like Peter Lynch, Warren Buffett and Bill Ackman is they consistently buy and hold companies which have extremely high moat, brand value, specialized business lines, high barriers to entry, and consistent revenues even during hard times. It’s the reason why Costco stock has traded at a premium well above its fair value for decades, has experienced little volatility and has compounded returns at close to 18% annually for close to 30 years. If you can find a company that’s an apex predator meaning the likelihood of them having competition or being disrupted is extremely low then you don’t need to go bargain shopping at the bottom of the barrel using P/E and DCF valuations to find your investments. Unpopular opinion but a lot of companies trade below their intrinsic value because the market isn’t willing to pay a premium for them.
Agreed, I’m if the opinion that for the most part (there are always exceptions) stocks that trade for “cheap” are doing so for a reason. It’s not because people don’t have all the same DCF calculations as the rest of us lol
Cheers Matt, wish you repost the same video next year with significant returns on your portfolio, Happy Fathers' Day ✌
Thank you, much appreciated! We shall see how it goes over the next year lol
When interest rates go up, stocks eventually go down. No?
And vice versa
For the most part yes pertaining to companies which have a high amount of debt and whose revenues are sensitive to consumer and business spending (and borrowing). There are some as well who do very well in higher rate environments because there’s certain businesses who will make money regardless of what’s happening in the economy think Wal Mart, Costco, Waste Management etc
I very much appreciate your post as well as your wisdom. I've been investing in stocks now for about five years. When I started, like many other investors, I wanted a deal... I only considered cheap companies that Warren Buffet would refer to as cigar butts, companies with one last puff left in them. In my case, this was not necessarily a bad thing... I didn't know what I was doing and many stocks around that time actually fell in value while my cigar butts held steady. Since my initial investments, I educated myself and thus knew enough to sell my cigar butts (about two years ago). I bought some great companies, thereby doubling my money. My thoughts on the matter is... it is crucial to educate yourself and learn how things work before you commit yourself... go slow until you know what you are doing and DO NOT LISTEN to the experts... make up your own mind after research. Investing is an art as well as a science, so learn and go with your gut. Once again, thank you so much for your sage advice!
Couldn’t agree more, many people look to others for answers when really it’s about building up enough confidence within ourselves to understand what we’re trying to accomplish with it
Never blindly follow anyone, not even yourself. 🍻
Solid content. Nice work, Matt! Happy Father’s Day!
Thank you!
Great video. Thanks for sharing your analysis
Thanks!
Great insights, as usual. But I wonder if buying at all-time highs applies more so to indexes. I would think entry price matters more to individual stocks, for the same reasons that timing matters more. Curious to hear your thoughts. Your insights made me think of the old age debate on Value vs Growth. As a believer in the efficient market hypothesis I think investor consensus on a stocks future growth is factored accurately in its current price. Which is why value investing never appealed to me, because it requires going against the consensus to say that cheaper stocks will actually grow more. However, to what degree is pricing affected by the popularity of market cap indexing. The "top heavy" trend is concerning, and I wonder to what degree its caused by indexing, if any.
Yes, I mentioned this in a different comment - it's more likely to be true with indexes because people are just constantly buying. For stocks, many will just move on to another company and never buy at higher levels.
But I think again this shows an interesting behavior. The indexes are always adjusting weight to be higher for the most successful stocks. They literally don't care about all-time highs either and yet they are the "best performing option for most people" so maybe there's a lesson in there.
For me at the end of the day it's simply what I've been saying in my videos as of late - getting a good price when you buy is secondary to picking the right companies over the long-term. The indexes prove this as they constantly "pick the right companies" by adjusting their weight to the best performers, not the ones "at the best value."
It's fascinating to see how human nature pushes us to focus on "did I get a good deal today" over "is this the best company I can buy today." But I don't know, that's just my thoughts on it 🤷🏻♂️
@@mattderron That makes sense since indexes are not "traded" as much as individual stocks, mainly bought and held. Sounds like you are as skeptical of "Value" investing as I am. I do think the success of cap weighted indexes makes a strong case against value. If one were to make an index that weights "undervalued" stocks more as they get cheaper, I bet it would fail miserably. The momentum factor appeals since it's essentially Growth on steroids (SPMO, XMMO). They have high turnover, a non issue in a tax sheltered account though. Seems less effective with smaller caps though.
Yeah I think it depends on what you consider "value." I think I disagree with how most people I interact with online see "value investing" which is this traditional Buffett / Graham "valuation matters" mindset of always wanting to "get a good price." I simply disagree that it's the most important criteria when you're talking about a long-term growth portfolio.
For example, I saw a comment from someone who listened to my Hershey episode (where I sold) and it was something like "this investor doesn't like stocks which are out of favor which is where real generational returns come from." I completely disagree with that statement. If we're talking about long-term returns and not shorter term swing trades...buying Hershey at an amazing price likely won't perform better than say...buying Amazon at a premium. Buying at a good price doesn't trump the business that will actually compound over time faster. Obviously there are always caveats to this and different timeframes when it's true, etc.
But in that particular example - yes I am skeptical. Buffett didn't crush his Apple trade because he bought it at a good price. He did buy at a great price and that helped. But he could've bought it a year later after it doubled and it still would've been a 5x trade. It just so happened it ended up being a 10x due to his great timing. The key though....was to buy Apple instead of something else that was trading "at a great price."
@@mattderron I agree, the goal should be to pick the right companies, getting in cheap is just nice if you can. When I delved into picking stocks I often identified good companies but never moved on them because they were "expensive" according to valuation metrics. So I ended up on the sidelines with a long watchlist that always went up. Perhaps its because of the overarching goal to "buy low, sell high". Maybe it should be "buy now, never sell till you need the money".
Common sense advice as always Matt. Cheers from the UK!
Thank you, cheers!
Fantastic video! Well done, Matt! One thing that stands out to me is the importance of a good understsnding of a business and its growth potential rather than just valuations that often give one misleading signals (overvalued/undervalued business).
Agreed, IMO understanding the business and growth outlook is the most important part of the analysis (assuming your focus is long-term returns). For other styles of investing (income only, retirement) it will be different obviously.
The last 5-7 minutes were the gems! Absolutely nailed it. Investment is a personal thing and not a competition! Hats off sir!
Thanks, much appreciated!
Always consistently buy. That way, you will always be buying the dip and when its at the high, so you will always hit the average.
Investing is a game of information and patience.
Are you in San Antonio?
Yup
@@mattderron same here, been watching all your videos. Really good info
You certainly do your homework! Would you consider investing in Eli Lilly? Thanks for another very informative video! 😊
Thanks! I haven’t dug into Eli Lilly so I wouldn’t have anything intelligent to say about it at this point, sorry!
If you want to go into medico consider splitting between Novo and Eli can be a good bet (the two leaders in diabetics and weight loss). Not a recommendation, do your own diligence - the two have done very well, are very well run and have long positive track records. Worked for me. YMMV.
Perfect timing, I just sat down with a gin tonic 🙂 Great points, bottom line is to educate ourselves and follow a strategy that suits our goals. It can be hard work to own individual companies, or easier work choosing ETFs, everyone should find what suits them best and forget the noise that surrounds us. Cheers!
For the noise is the truth lol
@@mattderron 😂
@@dominiquetheeasyminimalist good lord I just noticed what I typed. I thought I was typing “for sure forgetting the noise” 😂
@@mattderron 🤣
Thanks for sharing your wisdom 😊
No worries!
Thank you for another great video. Your content is a beautiful mix of stock talking, super value info about things/thoughs related to stocks and your personal experience with investing and life in general. This channel is a gem. Greetings from Mikael, Denmark
Thank you so much, I really appreciate it!
I’m glad I stumbled upon your channel. It gives good perspective from all angles and not trying to hype up one specific stock/sector. For the first time in my life I finally managed to invest in stocks (40 years old starting late) but I got caught up in TH-camrs telling me oh this is the one stock to get it’s going to blow up so get in now. It’s like jumping into Gamestock. Yes some made a ton of money but most everyone else lost because we aren’t professionals. I put $10k into one stock and lost almost 33% by not doing my own research. I ended up selling because it just felt wrong and reinvested into VOO, SCHD, some t bills and while it’s less exciting I managed to make my lost money back so now it’s just upwards and onwards from here. Cheers!
That’s awesome, never late to start. Everybody learns a lot at the beginning and makes mistakes so don’t worry about it too much. Glad to hear it’s turning around already for you!
Two comments. First don’t confuse investing and trading . Or even gambling. All three can be done with the stock market. And another famous saying is don’t change a trade into an investment or an investment into a trade. Investing imo should only be done with at least baskets or indexes of stocks. Trading almost always is done on an individual stock. Second point is that you are right , no one knows the future. This is why dollar cost averaging is a good concept. And when a stock is at an all time high , even if ,you leave some “money on the table”, I think it is a good idea . Hope you finished that drink you look like you were enjoying. And oh, happy Father’s Day
I am always amazed at your videos. Very insightful thoughts.
Thank you!
The graph showing buying at ath having better returns is fascinating. I'm not sure I understood the underlying reason though, sorry. Hoe does it get a better return if the final value is the same? Mathematically are you not making the x% difference in more profit in final price, if you buy at x% lower?. Enjoyed the video regardless of you confusing me on that :)
I think it's because if you wait for the dip, you may be waiting an awfully long time while the market grinds higher. So when you do get that dip, it's already much higher than the ATH 5 or 6 months ago.
For example, the index is at 100 Jan 1st, but I think it's ATH is too high so I wait to buy at 90. The market moves slowly but inexorably upwards until July & hits 130. I'm still in cash. Then it drops 10% to 117. I now have to decide whether to buy or wait for it to drop lower. If it doesn't go lower I'm screwed, so I buy. Then it continues to go up & ends the year at 135.
My gain will be 15.38% for the year. Had I bought at the ATH in Jan, the gain would be 35%
This scenario is most likely in a bull market. In a sideways to down market, waiting for a dip could work in your favor. The difficulty is making the right call on the trend.
Yes this is my understanding of it..."waiting" means you miss out as it goes higher before you eventually buy. Now I'm sure this is more true when trying to buy indexes rather than individual stocks (because many people will likely just move on to another company instead of buying higher), but still...was interesting to see the chart
Thanks both
I’m a beginner. I’ve heard to place “stop loss” on each stock. Ive been coded as a pattern day trader so that’s gonna be complicated, especially if I “buy”, then my stop loss order is filled. So my next option is to get assets with “inverse exposure” to the market.
Honestly, stop losses should be used more for folks who are actively trading their stocks. If you're a beginner trying to invest for long-term returns it's easiest to start with just putting money into a market index fund like VOO or VTI and starting there.
If you really want to invest in individual stocks, pick some high quality companies that you know (not penny stocks or meme stocks) and get in the habit of investing consistently over time.
IMO stop losses are a complication that shouldn't be necessary when you're starting as long as you're putting your money into something with long-term potential.
@@mattderron ok, that makes sense! I have schwab. I have schd, schg. I love reits for some reason, so I have a few of those, and for high quality companies I have a couple of those (like “you know who”😂). Sold off my “inverse stock” and made room for my foundational etf. Yeah, had to rearrange some things as I started learning and being aware of certain things.
I like you talking about buying at all time highs. Generally more then half the time I am buying a stock at all-time highs (after I've done a lot of research on the stock of course) and I think it has almost punished me once. Nvidia is an example as you said of a stock I have bought in all time highs. Visa and Mastercard are stocks I am also looking into buying in right now even though they are at high prices (not as high as maybe a few months ago) I think as you said value says a lot more then prices. I also remember all the hate you got for buying AAPL and I just bought a lot of it recently and it did pretty well. So I don't think people know exactly what will happen and just wanted to say you have great analysis and continue believing in your own research.
Agreed, no one knows. It's easier to sound smart saying things like "this isn't a good value right now, I'm waiting" than it is to say "I don't know what's going to happen with price, but this is a strong winning business, so I'm buying"
@@mattderron exactly buy good stocks is always
good and buying them at great value is just a cherry on top.
Agreed with every word you said. Very common sense. Great job on introspection.
Thanks!
What is your portfolio’s guiding principle on diversification? For example why do you need to own LuLu when that capital too can be allocated to Amazon or NVidia ?
I don’t have to, I think there’s an opportunity there. But to that point I wouldn’t be surprised if my portfolio got smaller from the 12 stocks I have now to closer to 8-10 over time. I have no guiding principle on diversification, I don’t focus on it at this stage
Great points. Context is everything at all times. Love videos. Have a great Father’s Day!
Thank you!
“It's far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.” - Warren Buffett
WB didn't buy NVDA, and he is selling a lot lately.
So you really think NVDIA is fairly priced at this valuation
@yourboyfriendDeftie Fairly priced is an opinion of who is examining it. By standard metrics, P/E ratio is too high, so by that standard it is over priced. However, right now, they have little or no competition so they have outrageous pricing power and profits. The competition, such as AMD, and others will most likely change that. The question is, how long will this last? A.I. is such a driving force demand for NVDA chips will be high for the foreseeable future. How long is anybody guess.
@@RS-lw9cd while I somewhat agree, it is my opinion that the market is exaggerating A.I. in all of its aspects. Such things in the past have always been catastrophic
@@yourboyfriendDeftie Glad to hear your view/opinion/perspective. Nobody knows what will happen the future. I am bit more optimistic on NVDA. I have already seen A.I. replace people in the workforce and I think this will continue. Although not good for those people that lost their jobs, it will reduce costs for those companies, which will drive the stocks higher...and the only real source of A.I. chips are from NVDA since all the other companies are playing catch-up. That is why ALL the companies, especially the large ones are looking to A.I. to reduce cost and increase efficiency, even though these companies have to buy NVDA chips to do so. But, that is just my opinion. I can easily be wrong. Only time will tell. Good luck to all of us in the future (including you and I)!!!
That chart was surprising,buying at all time highs outperformed a lot
May 31st I bought 50 shares of Amazon and 50 shares of Google at okay prices IMO but seeing that chart makes me feel a little better
It’s most likely because waiting for a pullback means that you miss a lot of the gains in a rising market. Ie “this is so overvalued” then it goes up 50%, then comes down 10% and you buy. You missed a major part of the move. Anyway, that’s my guess as to why it’s so much worse in terms of performance. In reality it may not be as bad.
Good show. Thanks.
Thanks!
Thanks. Interesting video. Agree with your points. Happy Fathers Day.
Thank you!
Cheers!
Happy Father’s Day!
Enjoyed the info.. thank-you!
Thanks!
My personal main problem with the investing community is how content creators and viewers seem to think only their way is the holy grail of investing, and everything else is misguided and crap. When in truth most styles seem to work mostly because of the traits where they intersect, like being long and not buying expensive crap and so on. So all the other minutia just comes down to what fits your mindset, age and style.
Totally agree, I try to show different sides as much as possible in my videos, but you're right. There are some basics but many approaches can work. All depends on what you're looking to do and what's important to you
@@mattderron which is why I enjoy your channel so much. I don’t even know if we have a similar investing style (I’m new here), all I know is you just speak common sense and that’s a breath of fresh air as you aren’t trying to sell a certain way of investing, while claiming everything else is doomed to fail.
Excellent show thank you so much
Thank you!
The next two weeks present a critical juncture for Nvidia (NVDA). Historically, the company's stock price has exhibited a propensity to decline following a stock split after a two-week period.
However, it is essential to consider the contemporary market environment, as Nvidia's current circumstances diverge significantly from those of previous eras. The company's robust financial performance and its position at the forefront of artificial intelligence development may serve to mitigate against any post-split price depreciation.
This is a brilliant video Matt, keep up the great work my friend!
Thank you!
I have the same stocks except for lulu. I bought them all in the last 6 months. I hope we do well! Lol
Nice!
Thanks!
Thank you so much, much appreciated!
Love the Spurs shirt 🤘🏻
Go Spurs Go!
Great content Matt!
Enjoy all your videos
Thank you, I appreciate it!
Break out the Julio buddy! I always love your insight. Happy Fathers Day, cheers 🥂
Thank you!
I bought WCBR based on your research. I understand you were not recommending anything. It's been interesting to watch. I only did a few hundred dollars just to watch the individual stocks. As you know it hasn't done well. What I learned... for me, if I invest in cybersecurity going forward, I'llbuy a couple of the individual stocks. Crowdstrike and maybe Palo Alto. But I wouldn't know that had I not experimented with the WCBR ETF. SW in general is not doing well and AI is going to be big in that arena.
I’ve never talked about WCBR or even looked at before…must be mistaking me for someone else
@@mattderron
Ohhhhhhhhhhh rats, I was afraid that maybe it wasn't you. It's still a story relevant to your video, I think.
There is a video/article/podcast every day of the year every single year predicting the "next" market crash is "now". Early 2023 (as mentioned) it was everywhere on all media channels. Fortunately, I stayed the course and 2023 became my best year ever. Go figure...
Perfect!! I totaly agree!!
Cheers 🍻 Happy Father's Day!
Thanks!
I recently found out about your channel, great content Matt. I am 38 and just started investing the past year or so. My portfolio contain 20% VOO, 20% SCHD, 5% SMH 5% SOXQ, 10% VGT , 10% QQQM and 30% TQQQ. Thoughts?
Thank you! In general it’s hard for me to answer portfolio questions without knowing your risk tolerance; time line all that stuff. The only question I would have is why TQQQ? I know it’s the 3x leveraged long QQQ but my understanding is that it’s more for traders as opposed to long term holding. Plus you also have QQQM in there, so just curious what your thoughts are for TQQQ?
Your money, your portfolio, your personality, it's your problem dude! Quit asking complete strangers your personal questions. It's like asking someone you just met on the street, in the supermarket aisle, or in the cafeteria, who you should marry and you start telling them the attributes of the potential candidates whom you are considering 😂😂
Matt, my reasoning behind TQQQ, I have done a lot of research, it is risky but also very very very unlikely to go to 0 which will be the only thing that will kill this etf. Otherwise, I am planning to DCA it for 10 years, if by then I did a very good profit I will sell it all and move it to other regular etf, if its super down by then, I will continue dca until it goes up again. I am certain it will eventually go up since it tracks the Nasdaq 100. The reason why having also a regular QQQM is because I kind of treat it as a separate portfolio with all the other regular etf and I really like QQQM and believe in the technology, if I made a mistake with TQQQ I am ok to loose that money and at least tried. After researching though about tqqq, even after it fell drastically in 2020 and 2022 it still could give me better return then the VOO for example. To the other dude that commented here - what was I thinking to myself asking portfolio question this guy that talking about the stock market?? So silly of me! I really don't know what I was thinking 😂. Dude, you can learn something from everyone, even from homeless in the street. I will always analyze, check and investigate myself hours days weeks and months but it is always good to see what other people think. When listening to someone with a long speech for example, it is enough to take one little thing that you learn and it was worth the whole speech. No matter what anyone will tell me, I will investigate tons after myself. I am already married thanks for the advice though, wishing you health.
What about telemedicine AMWELL selling for 40 cents with hardly any Debts and 2-3 billion in cash from last 2 years atleast? Debt free might not just a good criteria to buy stocks even though it is a disruptor.
It's not something I would be interested in personally since they're not profitable (operating income < 0) and in general something like this trading under $1 isn't something I would be buying myself. But obviously, to each their own as long as they understand the risks
Nice perspective on all your points thank you. I must also add that I agree Guilio is the best tequila 😉
It really is, I enjoy drinking it
Wise advice
Thanks!
I’m 34 and I manage our retirement. I have our money invested in index funds (VOOG, FSELX, and VGT). There is overlap in the holdings, but technology is the future, so I feel comfortable. I’m outpacing the SP500 thanks to the semiconductor AI bull market. Semi market is expected to grow to 1T by 2030 and are the backbone of all technology. Reliance on semiconductors was made loud and clear during covid, and I think thats what gathered so much attention in the last 4 years. My personal investing account is invested in growth stocks that arent a major holding of my retirement index funds.
That's awesome, at 34 with that mix, you should do very well
Your awesome.
My smallest holding a micro cap biotech competing against the likes of Lily and Madrigal for a first to the market liver disease inhibitor down 12% Thursday and down another 13% today on no news. Time in the market ain't helping that dog! Kodak part 2! 😂 You just gotta shrug your shoulders. Happy Fathers Day Matt.
LOL well micro caps tend to be wild rides so who knows, could be up 20% tomorrow
Over 20 years of investing timing the market will give you only 0,2%
If you are not a trader then buying stocks at all time high will give you bigger return in the long run.
Its like starting pedaling on a bike from the top. Its so called a "Pump"
Real investing takes so long to make a decision, the longest one took me 6 months to read through its financial papers and Instead of finding reasons to buy I find all the reasons not to buy its stocks, then you gotta go through its fundamentals, short selling fundamentals, intermarket analysis, stock structure. It's a total bitch to do. Last 7 years of doing this, I could only find 5 companies🤷♂️
Sometimes, I have a hard time understanding how some people can buy so many stocks amd analysis so fast. I must suck at what I do
I guess it depends on how much effort / how many things you’re looking at. I always feel like every stock has trade offs none ever look perfect. It’s about which trade offs you’re ok with or think aren’t a big deal
@@mattderron l spend every min of my free time while not working or attending to social gatherings reading and researching for the last 7 years. Right now I'm trying to learn the financial sector and that sector is almost 10 times harder then tech, mining and manufacturing companies. Don't really have much of a choice though because insurance is one of those things thats not really elastic and mandated by law if you drive so theyd most likely to have some pricing power.... and this inflationary environment is most likely going to stick around based on 780 years of history (data from Bridgewater associates) what breaks the backbone of low interest rates is either a war or a major pandemic now we have both. Could be different this time but boy is history not on our side.
buy the whole market no need to do that unless you trade for a living
Stop beating yourself up over your indecision. Even warren buffett makes the exact same "mistakes", he openly admitted the greatest investment blunders are not those that he bought and sold at a loss, but those that he didn't buy and they eventually catapulted, and he quite eloquently calls them errors of omission rather than of commission.
@hulkman4004 you do capture all the upside along with junk and great companies but you also capture all the downside along with the junk and good companies it didn't make much sense buying so much junk. Right now the markets being held up by 4 companies
I prefer ETFS as I don’t want to keep tracking individual stocks , makes life much easier 😊
ETFs work really well, and your reasoning (not wanting to keep track of individual stocks) makes perfect sense. Glad you found something that works best for you!
I Like, ETF/ CEF's WITH,.. the Magnificent 7,.. IN them !
Here are some Option income Funds, Paying Monthly Div's that, I LIKE,. ETW, ETV, EXG, ETY and,.. CSQ
I will continue to, HOLD,.. THESE !
Go spurs Go!!!
Yeeesssss!
Good video. These saying are like children fables for good morals. They are for children. Real life is different.
It’s a good analogy to use, there are lessons in there that can be helpful but not to be applied generally to every situation
As long the nvidia ceo is alive i will hold those stocks. Im up 84% IA market size in 2030 US$826.70bn in 2024 US$ 184.00bn. But im start to invest in tech etf
I bought nvidia in march or may way before earnings. then I shoot to the sky
Yes Jensen is pretty awesome
Overthinking isnt your friend when investing ^^
Agreed!
Fiirst time to find this channel. And the first finincial views with fine tequila lol
😂 nice
Дайте руский перевод. Спасибо
If I had held on to my Nvidia shares I would be sitting on 1.2 million bucks today, but I let the macro and fearmongering get to my head.
Lesson 1.- Think for your own damn self.
Lesson 2.- You know what is best for your own damn self.
Lesson 3.- Good quality profits compound upon themselves, let them do the magic.
For sure, these are good lessons. We all have stories like this I feel like. I had one of my own, I talk about it in one of my old videos (My Million Dollar Mistake or something like that). It happens, it's life. We just keep learning and keep swinging.
1.2 million might still be possible if you hold Nvidia for the next 20 years.
Hindsight investing is always 20/20 but nobody ever makes a dime of profit from it
@@George-f8hOr a big fat ZERO.
@@George-f8h I'm sure it is, but missing out on gains like that in a 4-ish holding period still was a bit of a gut punch
this guy just said don’t time the market 3 times
dislike for drinking on stream
why?
You're a lier. Stop this nonsence.😢😢😢😢
what are you talking about?
Printing money makes you rich? 🤦♂️ Where did you study your economics???
So the money supply has nothing to do with assets prices then?
@@mattderron of course it has. But it does not make us richer. Just the assets have higher prices.
@@ondrej2904 so then people who have assets are able to keep up with inflation then and people without assets will struggle to keep up, no?
@@mattderron inflation is about redistribution of wealth not about getting richer. But back to assets. Those with overpriced assets can switch (buy/sell) those assets with other overpriced assets of others. Will they be richer? No, they won't. And those who have no assets before are at the same level too. They don't have any assets before and they don't have any assets now as well. The only way we are getting richer is that we save, invest and reinvest. Otherwise the central bank can just print for everybody e.g. 1 million USD and we are all rich right now.
@@ondrej2904 I don’t know where you got this idea that I said “it will make you rich” I simply said people who have assets will be in a better position than people who don’t. Because they will have assets that rise in value while those who don’t are constantly in the income chasing or paycheck to paycheck mode getting impacted by inflation. Inflation is not about “redistribution of wealth” it’s about a growing money supply that increases the prices for everything. Everyone is impacted, but those who have assets that also increase in price / value are impacted less because they are also benefiting and not just being negatively impacted