Should have added a disclaimer to the stock side as well. By that i mean you said its investing 101 so the percentage of interest is too low, and also variable, but did not mention that in regular stocks that, if you see the ground coming so to speak, you can exit out with some of your money intact. The video thus leaves people with the feeling that bonds= good Stocks=bad. Liked both the video and the series and looking forward to more...especially the more complex content down the road.
I've been through so many videos on youtube and still didn't get it well until i watched your video you deserve thousands of likes from me Very talented please keep making videos :)
Excellent instruction. I invest- primarily in Stock and know what it is like to lose value. But it doesn't stop me because I've had far more success than failure. In a portfolio you'll rarely be 100% in the green across all the holdings. There's always a few that perform poorly but then they tend to do well when the others are hurting. That's the trick to diversification- which I'm sure you will cover. Bonds are more about "preservation" and "risk management" than creating wealth. You have to beat inflation as well.
Thank you for this. There are so many videos for American investing but not nearly as many for Canadians, so thank you. You're great at teaching. Keep up the good job!!!
This is amazing I am very visual and have a hard time comprehending the stock market but with these cartoons and your informative tone I learned a lot today. THank you !
Clear, concise and to the point. Very well explained Preet. What you cover in 15mins takes 2 classes at the academic level. Gotta luv RUclips :). Subscribed and liked 👍
I have watch so many videos on learning investing and every one uses words that they assume I would know...your the first channel to explain what each word means and simplify it. Thank you for these they are awesome!
Dear Mr. Preet, thank you for helping me understand this content so thoroughly. I have struggled for years trying to assimilate such information and I finally landed the right conveyor. You're a blessing. I plan to watch all the material you created on these topics. as you've made me feel confident in my understanding. Thank you again a ton.
The more of this series I watch, the more I want to just save up money and invest it for the future. Too bad college debt in America will always find a way into your bank account.
Advice from an old dog: make sure you keep a tight rein on your spending. That's the only way to build up capital, regardless of how much you earn. Frugal living doesn't have to be so extreme that it takes all the fun out of life. Every time you spend weigh up the pros/cons and always opt for the more frugal option (which might be not spending at all - sometimes just waiting 2 weeks before buying something will convince you you don't actually need it!). Keep your eye on the bottom line.
13 year old , grateful that I found the video, which I might not have been thaught in school , it was simple and easy to understand yet so informative , keep going 💛
Thank you so much! You are one of my favorite RUclipsrs. Hopefully when I graduate and start making some money with the helpful tips from your videos I can donate to your patreon :)
Hi Preet! Thanks so much for this video - found it very informative!! I was wondering if you could do something like this (a comparison) whilst also adding in 'alternatives'? I am struggling to understand what they are and how they're different. Do you have a video where I could learn more about this? Thanks a mill!
Hi, I love your videos it is so informative and I managed to learn a lot from it! Just wondering when is your subsequent series coming out? Its been few months since you last uploaded a video.
Great video, Preet. I am interested in investing in Funds, are you planning on covering this in this series? Do you know any articles or references that explain how to measure the risks for Funds? Thanks man
I wish I can learn these when I was in college so I won't spend a lot of money on clothing and unnecessary stuff. Anyway, top quality lecture and I am looking forward to learn more!
Thank you Preet! This was incredibly helpful and informative - one of the best videos explaining these terms that I've come across. I look forward to watching others. Thanks!
One small comment (and I do realise this would complicate your explanation): In the more developed scenario, if the business drops to 50% of its valuation, you won't actually lose money and the business can still pick up, be restructured, etc. You only lose money if you back out at that stage or if it goes bankrupt. Otherwise, you've still got the same share of a company, albeit struggling and valued at 50%. (cf. if a house price drops, but you don't intend to move, you've lost nothing in the real world).
Hi Martin - one of the liberties I took (in skipping over details like that) to make sure I don't move too fast for beginners. I might cover this later in the series, or as a standalone video in the future. Cheers!
Not a simple answer. If you mean only 10 years before you retire but then need the money to last another 20+ years then the time horizon is not necessarily 10 years. Also, if you have other assets to rely on, your tolerance for risk, your need for risk (is the money extra or your only assets), these are all considerations that would go into answering that question (among other things). Then also remember that asset allocations are on a spectrum so some people might be 100% fixed income, some might be 100% stocks, and many people are somewhere in between those.
Hi Sammy - great question. I'll cover it in more detail later in the series (or as a standalone video), but as an owner, you also own the profits. However, it's up to the "company" to decide if those profits will be re-invested to grow the company, or paid out to shareholders. Generally speaking, in growth mode, a company will retain the profits and invest for further growth. A more mature company will eventually start to pay out profits if they feel they've expanded to the point of diminishing returns. More on this in a future video, but I hope that gives you an idea of how it works.
Hi Anthony: usually a company in growth mode does not pay out profits to shareholders. They tend to take any profits and reinvest it in funding their growth plans. When a company matures (becomes REALLY big), they then tend to start paying dividends to shareholders. So it's possible that in Option 1 that no payments were received by the shareholder. If you bought shares in a big company, they might pay dividends to you (and can still go bankrupt, although less likely). I think future videos may help drive these nuances home. Stay tuned! (And thanks for watching!)
Preet, I'm a finance undergrad hoping to do an internship in the summer. How can I prepare? I have no prior experience. What skills are most important?
It will depend on what aspect of finance you want to get into (if you know at this point). It's a big industry with many facets. Any ideas as to which area is of interest right now?
Money School My top two choices are Personal Financial Adviser or Commercial Bank Loan Officer. But I'm still exploring so I'm open to other career paths. I would highly benefit from any advice on the skills I should focus on and how I can prepare for an internship. I'm a sophomore from US by the way.
A great guy to follow is Ben Carlson who writes a blog called A Wealth of Common Sense: awealthofcommonsense.com/ There will be links to some other resources on his blog, but a great (and entertaining) way to start learning.
Hey i had a question, im really interested in the investing side of finance like the stock market but I hate everything todo with the accounting side of finance. Is there a job or area that would be most suited for me or do all finance jobs need accounting?
Investment advisors would certainly fit that bill. Dealing more with asset allocation, managing clients, financial planning (hopefully), as opposed to digging through balance sheets. (Although some do if they are into individual stock picking). There's also investment fund wholesaling, portfolio analytics, almost anything sales related, etc. Lots of options for sure.
I'm a science student yet I've always been interested in economical investments. The explanation is perfect for someone like me. Thanks a lot.
Thanks!
Simple. Informative. Brilliant.
Thanks
Thanks man!
Should have added a disclaimer to the stock side as well. By that i mean you said its investing 101 so the percentage of interest is too low, and also variable, but did not mention that in regular stocks that, if you see the ground coming so to speak, you can exit out with some of your money intact.
The video thus leaves people with the feeling that bonds= good Stocks=bad. Liked both the video and the series and looking forward to more...especially the more complex content down the road.
willcant quickscope
musica
willcant quickscope
Allielua
I’ve learned way more about investing by watching your videos than I did when I went to school lol. Thank you
I agree! Thank you, Sir!
As a 15 year old girl trying to get a leg up in investing before I become an adult; these videos are absolutely legendary!
school is less riskier so we are given boring lectures, youtube career is riskier so we get quality lessons :P
I actually learn a lot more on youtube
True
This is still the best introductory video to stocks and bonds on the internet! I come back to it from time to time :)
Wow that’s so kind of you to say! I appreciate it!
I've been through so many videos on youtube and still didn't get it well until i watched your video you deserve thousands of likes from me
Very talented please keep making videos :)
That is so kind of you - thank you!
Excellent instruction. I invest- primarily in Stock and know what it is like to lose value. But it doesn't stop me because I've had far more success than failure. In a portfolio you'll rarely be 100% in the green across all the holdings. There's always a few that perform poorly but then they tend to do well when the others are hurting. That's the trick to diversification- which I'm sure you will cover. Bonds are more about "preservation" and "risk management" than creating wealth. You have to beat inflation as well.
I would say this is the first time I clearly understood the difference between stocks and bonds!
Awesome - glad to hear it!
Thank you for this. There are so many videos for American investing but not nearly as many for Canadians, so thank you. You're great at teaching. Keep up the good job!!!
You would be amazed how difficult it is to just get a straight answer about these things and your video did that. Thank you. Definitely subscribed.
Thank you - I appreciate that!
This is amazing I am very visual and have a hard time comprehending the stock market but with these cartoons and your informative tone I learned a lot today. THank you !
Very clear explanation. The best video on stocks vs bonds.
We need financial Education In our School System.....But for now This is really Great....Simple and Easy to Understand
15 years old, watched this youtube series, learnt so much, and going to make my first investment very soon :)
I wish I had access to this kind of information at your age. I'm happy for you. :)
awsome video series, i myself work in banking but still enjoy this carefull breakdown of investing
Clear, concise and to the point. Very well explained Preet. What you cover in 15mins takes 2 classes at the academic level. Gotta luv RUclips :). Subscribed and liked 👍
I have watch so many videos on learning investing and every one uses words that they assume I would know...your the first channel to explain what each word means and simplify it. Thank you for these they are awesome!
Just about to start my second year in economics and finance. Such a good series please keep it up. Good way to get knowledge of basic terms.
Thanks Rob!
Dear Mr. Preet, thank you for helping me understand this content so thoroughly. I have struggled for years trying to assimilate such information and I finally landed the right conveyor. You're a blessing. I plan to watch all the material you created on these topics. as you've made me feel confident in my understanding. Thank you again a ton.
Excellent simple explanation. Already waiting for next episode
Thanks Imran!
Smart, Simple, yet Effective lesson. Thank you.
These are awesome man. Thank you.
You're welcome!
Making it look simple. Thank you
The more of this series I watch, the more I want to just save up money and invest it for the future. Too bad college debt in America will always find a way into your bank account.
Thanks, Mateo!
by the time I end college Im looking at around 20k but hopefully i can pay it off fast with a good job! I can only hope to be so blessed :)
Advice from an old dog: make sure you keep a tight rein on your spending. That's the only way to build up capital, regardless of how much you earn. Frugal living doesn't have to be so extreme that it takes all the fun out of life. Every time you spend weigh up the pros/cons and always opt for the more frugal option (which might be not spending at all - sometimes just waiting 2 weeks before buying something will convince you you don't actually need it!). Keep your eye on the bottom line.
The best explanation of bonds vs equities I have ever watched. Good job!
Excellent video Preet, very informative
Thanks, Chadene!
Very clear and concise
You are a good teacher im 13 and understand the important bits
Thank you so much for sharing your knowledge.
I'm new to investing for myself. after a lot of reading, this video is much easier to understand. thank you
13 year old , grateful that I found the video, which I might not have been thaught in school , it was simple and easy to understand yet so informative , keep going 💛
Great video, i hope you'll get more youtube traction for this material because it is very informative. Have a good day!!
Thanks Julien!
This was the best scenario, I have seen on RUclips thus far .
Great video! Best one yet! Can't wait till the next one! :D
Thanks Joe!
Thank you so much! You are one of my favorite RUclipsrs. Hopefully when I graduate and start making some money with the helpful tips from your videos I can donate to your patreon :)
Loving the longer video!
Perfectly explained
Learning so much from these, keep up the good work!
Thanks!
WildDanHibiki في هذا القسم
forever grateful didnt know nothing now am quite informed.thank you
I REALLY APPRECIATE THE DIVERSITY IN THE DRAWINGS OF YOUR CHARACTERS! Investing is for everyone.
Amazing. super informative.
Very good job! This is explained clearly!!! :)
Great explaination
Thanks a lot! The finance jargon was so confusing for me (I'm not a native English speaker). Your video nailed it.
"I like! Very Nice", can't wait for the next episode.
could you do a video about currency manipulation, like devaluation of currency to boost exports etc.
Excellent video! simple and clean overviews on these two concepts. Specially for non-finance people!
Couldnt make it better. Bravo and thank u very much for sharing such valuable knowledge
Great information mate. keep it up!
Thanks Luke!
High risk high reward, low risk low reward!
Thanks for this great vid!
Great info!
Very clear and informative video. Thank you very much! Especially for clearing up bonds for me.
Hi Preet! Thanks so much for this video - found it very informative!! I was wondering if you could do something like this (a comparison) whilst also adding in 'alternatives'? I am struggling to understand what they are and how they're different. Do you have a video where I could learn more about this? Thanks a mill!
simple way of introducing investment to few people who don't know much. can't wait to see the next video.hope more videos to be post.🎦💲💵💰
Hi, I love your videos it is so informative and I managed to learn a lot from it! Just wondering when is your subsequent series coming out? Its been few months since you last uploaded a video.
This really helps me understand more as an 12 year old
Thank you so much. Beautifully explained.
Great simplicity love it !
Great video, Preet. I am interested in investing in Funds, are you planning on covering this in this series? Do you know any articles or references that explain how to measure the risks for Funds? Thanks man
Please post the other video pleaseeee
Excellent! I thoroughly enjoy all your videos and thanks to them I feel informed to start investing after graduating :-)
All of this 101 stuff should've been taught somewhere along the way in secondary education...
*_*facepalm to our education system*_*
I agree 200%
Can you make a video about what is liquidity
I'll add it to my list. Cheers!
Simple to understand, rich and well illustrated info. Keep it up!
Great information. Very clear!! Thank you. Are dividends the same thing as interest earned on bonds? Or are they something else?
You are awsome bro. Eexcellent teaching..
I wish I can learn these when I was in college so I won't spend a lot of money on clothing and unnecessary stuff. Anyway, top quality lecture and I am looking forward to learn more!
Really enjoying these videos, hope you come out with more soon!
fantastic video! thanks for sharing!
Great great explanation sir
Sir if possible can u make a video on mutual funds?
Thank you Preet! This was incredibly helpful and informative - one of the best videos explaining these terms that I've come across. I look forward to watching others. Thanks!
the game theory thing was cool
Thank you, this was very well explained.
Thank you it's really very informative
One small comment (and I do realise this would complicate your explanation): In the more developed scenario, if the business drops to 50% of its valuation, you won't actually lose money and the business can still pick up, be restructured, etc. You only lose money if you back out at that stage or if it goes bankrupt. Otherwise, you've still got the same share of a company, albeit struggling and valued at 50%. (cf. if a house price drops, but you don't intend to move, you've lost nothing in the real world).
Hi Martin - one of the liberties I took (in skipping over details like that) to make sure I don't move too fast for beginners. I might cover this later in the series, or as a standalone video in the future. Cheers!
I now know why we have to like videos.
I love you series keep on going
If you are 55 and have only 10 years more to invest, is it better to invest in stocks or bonds?
Not a simple answer. If you mean only 10 years before you retire but then need the money to last another 20+ years then the time horizon is not necessarily 10 years. Also, if you have other assets to rely on, your tolerance for risk, your need for risk (is the money extra or your only assets), these are all considerations that would go into answering that question (among other things). Then also remember that asset allocations are on a spectrum so some people might be 100% fixed income, some might be 100% stocks, and many people are somewhere in between those.
Really good video - thanks 😀
Glad you enjoyed it!
A very good job on the video.. Keep up the good work.
In case of equity, do we get a percentage of yearly profits generated by the business? Or is it up to agreement between the two parties involved.
Hi Sammy - great question. I'll cover it in more detail later in the series (or as a standalone video), but as an owner, you also own the profits. However, it's up to the "company" to decide if those profits will be re-invested to grow the company, or paid out to shareholders. Generally speaking, in growth mode, a company will retain the profits and invest for further growth. A more mature company will eventually start to pay out profits if they feel they've expanded to the point of diminishing returns. More on this in a future video, but I hope that gives you an idea of how it works.
Thank you for the detailed response.
Eagerly waiting for the next video. :)
I love the way the vedio is laid out 👌🏼👌🏼
very helpful, thank you so much !
Wow - I finally understand. thank you
Nice one thank you
Awesome! Glad I stumbled upon your channel.
Good info for my teens!
Brilliant 👍
For option 1 the unsuccessful scenario does that mean you will not receive the profit or income you get or lose money from your wallet ?
Hi Anthony: usually a company in growth mode does not pay out profits to shareholders. They tend to take any profits and reinvest it in funding their growth plans. When a company matures (becomes REALLY big), they then tend to start paying dividends to shareholders. So it's possible that in Option 1 that no payments were received by the shareholder. If you bought shares in a big company, they might pay dividends to you (and can still go bankrupt, although less likely). I think future videos may help drive these nuances home. Stay tuned! (And thanks for watching!)
Another great video!
Thanks!
sso does a company have unlimited shares to buy??????
Great video. I am wondering if anyone can tell me what software was used to make this video?
Videoscribe
@@PreetBanerjee Thanks Preet.
Preet, I'm a finance undergrad hoping to do an internship in the summer. How can I prepare? I have no prior experience. What skills are most important?
It will depend on what aspect of finance you want to get into (if you know at this point). It's a big industry with many facets. Any ideas as to which area is of interest right now?
Money School My top two choices are Personal Financial Adviser or Commercial Bank Loan Officer. But I'm still exploring so I'm open to other career paths. I would highly benefit from any advice on the skills I should focus on and how I can prepare for an internship. I'm a sophomore from US by the way.
A great guy to follow is Ben Carlson who writes a blog called A Wealth of Common Sense: awealthofcommonsense.com/ There will be links to some other resources on his blog, but a great (and entertaining) way to start learning.
Very well done!👍🏼
Thanks!
Amazing 👌
Thank you
Hey i had a question, im really interested in the investing side of finance like the stock market but I hate everything todo with the accounting side of finance. Is there a job or area that would be most suited for me or do all finance jobs need accounting?
Investment advisors would certainly fit that bill. Dealing more with asset allocation, managing clients, financial planning (hopefully), as opposed to digging through balance sheets. (Although some do if they are into individual stock picking). There's also investment fund wholesaling, portfolio analytics, almost anything sales related, etc. Lots of options for sure.