[00:00] He's one of the hardest working people I know, I remember him working in a factory job making cable ties so he could provide for me and my mom and my three sisters.
[00:14] He'd stash away any extra money he made in a shoebox as well hoping that one day he could quit his job of his money in the stock market,
[00:27] Unfortunately, what my dad didn't realize Can you see where this story's going? was losing value due to inflation.
[00:41] As more money is printed, This meant he was never able to quit his job in the factory. away by inflation scared me so much
[00:55] As a result, not only have I beaten inflation, by around $17,000 a week on their own, I'm no financial advisor,
[01:11] That's why I'm making this video. How can I make money investing in stocks? In the last 60 years,
[01:25] So if your money isn't growing by more than this on its own, In a perfect world, you would have a savings of eight to 10% every year,
[01:39] Unfortunately, such savings accounts don't exist. like this by investing in the stock market. A stock is a small part of a company and when you buy it
[01:53] there are two ways you can make money. of the stock goes up during the time you own it, Secondly, you can receive dividends.
[02:05] Not all stocks pay dividends, but if they do, The magic really starts to happen when you own a bunch
[02:17] because the interest applied becomes larger and larger. a guilty pleasure of mine is messing Let's do one now.
[02:33] If you were able to invest $250 per month, in 42 years, you'd be a millionaire you would actually have over 2 million in your account.
[02:49] then that would just speed up the process. on historical average data and it isn't guaranteed, So as you can see, the real secret ingredient
[03:02] which brings me onto when should I start investing. The younger you start, the better. to grow and compound.
[03:17] as your investments have time to recover and it will happen, it always happens, in the way preventing you from investing.
[03:32] First, you need to make sure you've paid Just think about it. if you are paying 15% to a credit card company.
[03:47] This should be enough to cover three to six months This way, you are not forced to sell your stocks which can really ruin your progress.
[04:01] you are ready to start investing. then it would be a great idea to ask a parent to open up a custodial account, which allows them to invest for you.
[04:14] Your next question is probably something When you ask an investor, However, I have a different opinion.
[04:27] through starting different businesses and only use the stock market to grow my wealth over time. from flying full-size airplanes and racing cars
[04:40] If I'd invested all of that money into the stock market,. So my answer would be to invest whatever you then a 70/20/10 rule is a pretty good guide.
[04:57] by these percentages, 70% on living expenses, Research shows that people who invest and downs of life and also get ahead of everyone else.
[05:14] There are various different apps out there I'll leave some links below. You'll often hear people throwing around the terms,
[05:28] in the UK, TFSA in Canada and supers in Australia. as they allow you to avoid paying taxes on your investments,
[05:43] A great thing about these investing apps is they So rather than buying a share of Apple for $190,
[05:55] I wish I had this option when I was younger, without having to take any big risks. One of my favorite investing platforms is Trading 212,
[06:09] Since I was planning to talk about their app anyway, in sponsoring this portion of the video. to £100 to anyone that uses the code
[06:23] One of the really cool things with fake money so you can get familiar with real data from the markets without risking any money.
[06:36] or just want to try some strategies this is a great way to get started. where you can see how other investors
[06:49] If you wanted to invest 100$ into that pie, allocations that that pie creator has chosen. it's worth trying out Trading 212 because signing
[07:03] Of course, don't forget to use the code Tilbury Or alternatively, click the link in a description Now, the obvious next question
[07:19] There are two main ways to attempt These are called technical and fundamental analysis. Usually short-term day traders are purely focused
[07:34] This includes looking at charts and patterns. in price by judging the highs and the lows on the graphs. my strategy is about keeping it simple.
[07:47] Lots of people talk about using margin and options, I'm a lot more focused on the fundamentals of a company. and the brand recognition,
[08:01] lies to indicate the long-term success of a stock. of selling it for at least two to five years. so I do look at the occasional chart
[08:16] This approach has helped me find some really in and out, trying to make a profit every day. I don't actually do any of this.
[08:29] This is definitely the best strategy for most people. It's a way for the average person to make more money
[08:41] and if you've ever followed any sports, The better your team performs, On the other hand, if they do really badly,
[08:55] This is almost exactly the same as an index. Let's take the S&P 500 for example. This is a list of around 500 of the largest public companies
[09:09] Apple and Tesla. then they run the risk of being removed With this league table or index of companies.
[09:22] However, if something bad happens then you can wave goodbye to your money. The idea of an index fund is to be a little bit sneaky
[09:36] in every single company on the list with just one click. out by all the companies doing extremely well. over the last 10 years has been 13.6%.
[09:54] no one has ever lost any money if they've bought and held an S&P 500 index fund for more than 20 years. that the average actively managed fund return 2% less
[10:07] This means that the professionals on average are doing worse they still charge you high fees no matter what. is because they're passively managed,
[10:23] and don't need an expert to keep adjusting them. Meaning the fees can be as low as 0.02% per year. it often blows their minds.
[10:37] they get confused at the different options and ask Well, as I said, I'm not a financial advisor, of success with three different types of index funds.
[10:51] This is the one we briefly mentioned before. of eight to 10% has allowed me to generate a fortune This is due to the power of compound interest.
[11:04] The S&P 500 tracks 11 different industries/sectors However, it is worth pointing out with five tech stocks dominating 23% of the entire fund.
[11:20] I personally don't mind There are so many different index funds that track The best I found in the USA
[11:34] The best in the UK would probably be the VUSA ETF. and an ETF is that the ETF can be purchased
[11:47] index funds can only be purchased in full. if the price is $500, you must pay $500. can be purchased in fractional shares,
[12:02] and instead you can invest whatever amount you like. out or want to dollar cost average in. so the money leaves my bank account
[12:15] Really and truly, there isn't a huge difference Just consider which one is best for you, take the plunge. The total stock market index has returned investors
[12:30] over the last 10 years, which isn't bad at all. You can't really get any more skin If you want to invest for a long period of time
[12:44] then this is most likely the fund for you. across the entire market, but even if it does crash, with time,
[13:00] I've seen three crashes since I've been an investor, the.com bubble, the 2008 financial crisis, I'm not going to pretend these crashes didn't hurt,
[13:13] every market I've invested in has bounced back. on the entire market trending upwards. that you really believe in that goes to the moon,
[13:27] because that stock doesn't play much The best I found in the USA is the VTSAX Index Fund and the best in the UK is the VWRL ETF.
[13:42] Emerging markets are predicted by some experts I think it's important for me to have It's all well and good buying the S&P 500,
[13:58] has some great gains, Just as an example of this growth, I looked into buying an apartment in Shenzhen.
[14:12] and now it's worth over a million. Emerging market funds are definitely the most risky type
[14:24] These funds include stocks from lots with Chinese companies. A lot of them are emerging markets, so it just makes sense
[14:38] The best I found in the U S A is the VEIEX ETF and in the UK, the VFEM ETF, but there are also lots
[14:50] so it's worth having a look around. the biggest question around investing, It really depends on how you define risk.
[15:05] However, you also face this risk if you have a diversified portfolio of index funds and keep investing at a gradual rate each and every year,
[15:19] then historical data shows you should be able in the event of a market crash is to mix These are just a different type of investment
[15:35] and you can buy these on the same investment platforms. I wouldn't worry too much about them, it's a good idea to have more bonds and stocks.
[15:48] the biggest risk you can take is not taking enough risk. when should I sell my stocks? in the stock investing world.
[16:03] or hold onto them mostly depends on your age. off them during retirement by gradually selling when needed. In fact, if you are in your twenties to thirties,
[16:20] there are only three good reasons to sell your investments. Hopefully, if you followed the video so far, out in times like this.
[16:34] If you have individual stocks that appear it may be time to cut your losses before those losses stack take a good look at the wider industry.
[16:49] then you know it's the industry, not just your stock. this gives you a bit of extra context. although I don't really recommend it.
[17:04] I don't know, saving up for a dream vacation, This is a figure and enjoying your gains.
[17:18] sell your stocks for as long Just invest and forget about it, This thinking will also help you avoid panic selling.
[17:33] then you can check out this video next, Make sure to subscribe if you want to grow your wealth. Okay, I'll see you over there.