Your point is valid when it comes to active investing. However, when buying passively managed funds every month or so, buying on red days makes a lot of sense.
DCA is a poor strat for people who like to speculate but yes probably similar outcome to red day buying. The point was do your research, ignore charts/daily price movements and buy under value companies with confidence.
My RUclips worlds collided today when Hamish commented on Meet Kevin. THANK YOU for speaking the truth! My wife and I roll our eyes whenever Kevin talks about buying stocks on red days. We watch Kevin for real estate insights and Hamish for value investing insights :) keep up the great content Hamish!
Excellent video. I understand that we need to invest within our circle of competence. How do you work out which companies to start analysing? Do you start at the ASX200 and start with CSL and work your way down the list?
I get what you're trying to say, Hamish, but as someone else here mentioned, the video title is very misleading. I would've titled the video: "Don't just buy on red days", instead of implying nobody should buy anything on a red day, which is nonsense.
Here is the way I see it slightly different, I plan on spending a maximum of $18,000 per year. And instead of just dollar cost averaging it bi-weekly or monthly, I'm mostly going to be investing in SPY and on average there are about 45% red days on that index so I calculated on average out of 252 trading days, there are about 113 red closing daily candles. So I divide up 113 days into 18,000 and come up with $159 that I will use to buy at the end of each trading red day. So if you have a set amount that you're willing to spend per year then would this not be a better approach than what he's talking about? At least with something like the s&p 500 which is fairly more predictable than individual companies like he is referencing?
I like your strategy. And the largest cap stocks like Microsoft and Apple tend to follow SPY but with slightly more volatility so you can apply your 45% red day approach to those ones too.
because everybody can't be using these strategy and expect it to still work for everybody, the big money strategy will never be uploaded on youtube but kept to ones self. if i had the secret formula, i wont share it i'd help people out for a price, that is why i always advise getting professional guidance. Mrs Maureen Kay Bryan has made me over a million dollars that’s more than any youber has in their portfolio and she is not even a youtuber, you probably never hear that name as a beginner meanwhile unlike these youtubers she's an actual stock broker
Thanks you Hamish! Good explanation. Hereafter olny will buy in a red day when they price will be under the intrinsic value with his corresponding margin of safety.👌🏻
hi Hamish. great video as usual. I'm interested in your opinion on spaceship voyager app. i use it so by transferring the same amount weekly ($500) to get the benefits of dollar cost averaging, no transaction fees and almost no fee on the app. (0.1% over $5k). Over the past two years they have had really strong performance and I would wager a bet that their staff will be able to pick stocks better than me. I also use commsec to pick my own stocks but performance isnt as good as spaceship and i have the $10-20 fee everytime i buy/sell which makes multiple smaller ($500) transactions not worth it. Any thoughts on if thats a good strategy?
What if I calculate the intrinsic value of a stock to be $50, but currently the stock price is $70. Then that means, in order for the stock to be good enough for me to buy it I need to wait for a RED DAY since that will make the stock price closer to intrinsic value. THIS IS CONTRADICTORY OF HAMISH'S ClAIM. SOMEONE PLEASE EXPLAIN
@@markpiezema7592 I think what he means is dont buy stock just because it has dipped. Do your research and then if it dips to the margin you think is a good deal, but the underlying stock is solid, then buy. Dont just buy random stocks that dip, just cause it dipped.
Great video as always Hamish! I really love the new setup it looks awesome. Yeah I agree this investing method is quite flawed, don’t know why people would base their investing on it hahaha... keep up the good work 👍👌
Interesting video, I hadn’t heard of this ‘buying only on red’ strategy so thank you shining a light on it. Quality video production, very well articulated and I am liking the apparent new backdrop. Looking forward to seeing more :)
I don't think they meant to say buy the stock because it is red day. They are saying if you already did ur analysis on the business and predict it will do well in the future, dollar cost average into the red days. Either u put all ur cash into the stock right away or dollar cost average based on set timeline or dollar cost average into the red days. Personally, I will dollar cost average on a timeline and add in some more during red days
Sooo when a high conviction stock you 1000% believe in drops 15% because of some over reaction news, and the company fundamentals haven't changed. You wouldn't take advantage of that opportunity to load up? I have well diversified ETF's I auto purchase every paycheck. And individual 10 stocks I love, they get invested in regularly as well. But I keep cash on the side that I deploy anytime they go on sale. It's been working great for me.
Well said! I’m thinking of investing in this fund as it has much better results than S&P morgan stanley investment funds - us growth fund a. Do you think it’s too risky ir expensive?
Being a fundamental investor makes everything so much easier and less stressful. I used to be one of those fortune tellers trying to figure out the pattern. Doesn't work, but feels good due to confirmation bias when you win.
@@MrTragic11 fundamentals isnt only numbers, it is also the material before which is more important, and that is industry and company analysis. Its hard to make sense of financials without context or relativity.
Bit of a pointless video. If you have a watch list of 2 stocks you want to buy, say Bubs at $1 and Kogan at $10. If you bought on a green or red day based on market conditions i.e stimulus announcement, US/China Tensions, you would be buying a stock at a discount if it's now in your price range, say Bubs 0.90c and Kogan $9.45. And if you want to be stock specific, after a few rises stock would have a little correction and dip from profit taking etc. If you bought then, same deal.
Kinda new to this stock stuff but do you guys buy stock when it’s still green or red I bought dodge when it was red today and today it’s going up green and I’m down 25$ out of 200$ I invested help lol
No, this is such a mistake from Your side. Looses and wins are unproprtional and assymetric. Lets Say You bought a stock for 95$ and 105$ where the stock Rose to 150$. Lets assume that You are willing to invest 10000$. That means that you will buy 1052 shares for 95$ and 952 shares for 105 $. After the stock will rise 15780 $for 95 and 14 280 $. That means that your rate of return fin the case of 95$ is higher by approx 35%. Lets analyze the opposite that the stock drops to 80$. That means that You have 8416 (when You bought it at 9.) and 7616 (when You bought it at 10.5). That means that You lost unproportionally more for the same ammount of money. In the first case the stock will have to rise by approx 19% to breakeven, in the second case about 32%. The calculation becomes more dramatic when Your stock drops more for example by 50%, in this case You must double up to breakeven.
You have 2 disadvantages: Fundamentals could change till expiration and the stock could fall below the strike price and rise again before expiration. But I would say on average it is a good strategy.
But then you have investors such as Phil Town (who I respect) recommending buying a business in trenches once its price has fallen below the upper margin of safety limit. This in fact has affected some of his purchases such as OZK and BA. I don't understand why, once the price satisfies the MOS and ROR, Phil does not build his entire position. So many opportunities can be missed this way. I know this is not exactly what you are referring to, but it us along the same lines. Nice vid mate!
It's because he uses options to tranch in and lower his cost basis or to manufacture his on sale price, it makes alot of sense once you understand the options strategy. Also it's simply to help you psychologically to have money left to buy more should the stock keep going down your happy buying more vs being mad you bought too soon.
hey Good video Hamish, I agree with you. Btw, I first found your channel when you were doing a 10-k analysis video, would it be ok if I ask you where you learned to do that? And as always, keep up the good work, I would really like to see your channel grow faster man.
Hi Amish. Thanks for your useful videos. I am Italian and I would like to buy stocks of some Australian companies, but I do not understand what the dividend taxes are. Here in Italy the taxes are 26% but investing in a different country we need to pay taxes in both countries. Could you help me? Thanks in advice. DAVIDE
I don't think he could help. Taxes are different for every country. In general, Italy makes a deal with Australia and you have to pay 15% (withholding tax) instead of 30%. And for this 15% you get a discount in Italy on Italian taxes. Check this with your tax administrations before you invest.
All Chinese ev are promising but double less than 2 weeks so much so the valuation in relation to the best forecast of revenue Are grossly imbalance So now waiting it to fall further before investing
🧡💛💚💙 Why are you guys Disliking this video? Hamish is right. These RUclipsrs are peddling *generic advice* and people take it seriously. There are people who are going to get CRUSHED following these "overly simple" strategies. 🧡💛💚💙
I think you did this video a disservice by not using an actual example of a real stock when buying on red. Should showed buying VOO , SPY or VTI on red days consistently versus just dumping X amount of dollars consistently Or even Apple , Micro , etc etc
I get that refusing to buy if it’s a green day isn’t a good idea BUT I know you like to wait for when the share price hits your buy target aka when the price drops. And what colour is it when your target companies hit your buy price? It’s red. This video is contradictory to your beliefs.
yes but he performs a thorough analysis before getting to his intrinsic value/price, which is the price you should compare the market price to and that should determine whether you buy or sell NOT if the ticker is in red/green.
@john At the end of the day, the ticker will still have to be red for it to hit the buy target. Thus, we get to my conclusion of this video being a contradiction
Great video Hamish. Unfortunately, most people are unwilling to do the work to actually determine an Intrinsic Value of a company because it's not an easy or quick process when done correctly! This is why my analysis videos are 30-90 minutes long haha. Hopefully, the recent pullback has showed investors the importance of fundamentals. Value Investing makes sense logically, and thats why it's a great way to invest while also being able to sleep well at night! :) - Shailen
Meet Kevin makes a fkton of money that he can just throwaway at anything lol dude has a high risk tolerance in his investments he's stock portfolio is like 90% Tesla
To a trader, or investor, buying on red days makes perfect sense. Any thing else is just stupid, and 180 degrees out of phase. "In my opinion" !!!!!!!!!
Investing is not trading. Have you not made a "distinct misinterpretation" of the Buy Red mantra? This video is irrelevant info for short-term traders: Minutes, hours, days etc. Perhaps you could have clarified.
High quality, wide moat businesses will never be undervalued in a traditional sense. Cheap is cheap for a reason, and more often than not you will find yourself in a lot of value traps if you only look for "undervalued" businesses. Growth investors will never measure a company' the same way as a value investor would. That's why no value investors own Amazon - it was never cheap enough. As a result value investors consistently underperform in today's market. Like Berkshire Hathaway has underperformed the last 20 years.
"borrow money" yeah no. And you agree with the first part? Investing your life savings is bad enough, investing money you don't even own and then paying interest, stupid.
Your point is valid when it comes to active investing. However, when buying passively managed funds every month or so, buying on red days makes a lot of sense.
I don't see how buying on red days will yield any worse of an outcome than just dollar cost averaging. Should be about the same long term
DCA is a poor strat for people who like to speculate but yes probably similar outcome to red day buying. The point was do your research, ignore charts/daily price movements and buy under value companies with confidence.
It won't ignore him
START buying stocks on red days (but only after thoroughly analysing the business)
Exactly
My RUclips worlds collided today when Hamish commented on Meet Kevin. THANK YOU for speaking the truth! My wife and I roll our eyes whenever Kevin talks about buying stocks on red days. We watch Kevin for real estate insights and Hamish for value investing insights :) keep up the great content Hamish!
Didn’t he admit he doesn’t understand the stock market. Why tf is he giving advice.
He literally spent a million dollars yesterday on red stocks so yeah he puts his money where his mouth is!
When it's blood in the streets(red days), that's when we eat.
I see you, boo!
Excellent video. I understand that we need to invest within our circle of competence. How do you work out which companies to start analysing? Do you start at the ASX200 and start with CSL and work your way down the list?
I get what you're trying to say, Hamish, but as someone else here mentioned, the video title is very misleading. I would've titled the video: "Don't just buy on red days", instead of implying nobody should buy anything on a red day, which is nonsense.
Thanks Hamish, your videos are always so clear and easy to understand. Your interpretation and reiteration of Buffet and Towns is spot on. Keep it up!
Here is the way I see it slightly different, I plan on spending a maximum of $18,000 per year. And instead of just dollar cost averaging it bi-weekly or monthly, I'm mostly going to be investing in SPY and on average there are about 45% red days on that index so I calculated on average out of 252 trading days, there are about 113 red closing daily candles. So I divide up 113 days into 18,000 and come up with $159 that I will use to buy at the end of each trading red day. So if you have a set amount that you're willing to spend per year then would this not be a better approach than what he's talking about? At least with something like the s&p 500 which is fairly more predictable than individual companies like he is referencing?
Exactly. The Spy share will still go up it’s predicted 10% for the year. But your average price per share will be lower
I like your strategy. And the largest cap stocks like Microsoft and Apple tend to follow SPY but with slightly more volatility so you can apply your 45% red day approach to those ones too.
do you know why earning from stocks with these youtube guides is almost impossible?
because everybody can't be using these strategy and expect it to still work for everybody, the big money strategy will never be uploaded on youtube but kept to ones self. if i had the secret formula, i wont share it i'd help people out for a price, that is why i always advise getting professional guidance. Mrs Maureen Kay Bryan has made me over a million dollars that’s more than any youber has in their portfolio and she is not even a youtuber, you probably never hear that name as a beginner meanwhile unlike these youtubers she's an actual stock broker
@@ericwilde4583 Exactly!! nothing actually beats first hand experience
@@ericwilde4583 its like getting war advise from a desk agent
@@stanleyfujiwara1394 yup lol
She works for Merrill lynch, a firm with a 0.5/5 star overall rating. Sounds promising..
This is one of my favorite channels, which also includes the one of Phil Town and Sven Carlin!
Thanks you Hamish! Good explanation.
Hereafter olny will buy in a red day when they price will be under the intrinsic value with his corresponding margin of safety.👌🏻
hi Hamish. great video as usual. I'm interested in your opinion on spaceship voyager app. i use it so by transferring the same amount weekly ($500) to get the benefits of dollar cost averaging, no transaction fees and almost no fee on the app. (0.1% over $5k). Over the past two years they have had really strong performance and I would wager a bet that their staff will be able to pick stocks better than me. I also use commsec to pick my own stocks but performance isnt as good as spaceship and i have the $10-20 fee everytime i buy/sell which makes multiple smaller ($500) transactions not worth it. Any thoughts on if thats a good strategy?
What if I calculate the intrinsic value of a stock to be $50, but currently the stock price is $70. Then that means, in order for the stock to be good enough for me to buy it I need to wait for a RED DAY since that will make the stock price closer to intrinsic value. THIS IS CONTRADICTORY OF HAMISH'S ClAIM. SOMEONE PLEASE EXPLAIN
you missed the point.
@@Allen-L-Canada explain
@@markpiezema7592 I think what he means is dont buy stock just because it has dipped. Do your research and then if it dips to the margin you think is a good deal, but the underlying stock is solid, then buy. Dont just buy random stocks that dip, just cause it dipped.
Quality content as usual. I really dig the new setup! Much more aesthetically pleasing and modern looking.
Thanks you!!
Thanks for your video Hamish
Great video as always Hamish! I really love the new setup it looks awesome. Yeah I agree this investing method is quite flawed, don’t know why people would base their investing on it hahaha... keep up the good work 👍👌
Great video mate! Hope the moving in has gone smoothly :)
Thanks Tom!
Interesting video, I hadn’t heard of this ‘buying only on red’ strategy so thank you shining a light on it. Quality video production, very well articulated and I am liking the apparent new backdrop. Looking forward to seeing more :)
I don't think they meant to say buy the stock because it is red day. They are saying if you already did ur analysis on the business and predict it will do well in the future, dollar cost average into the red days.
Either u put all ur cash into the stock right away or dollar cost average based on set timeline or dollar cost average into the red days.
Personally, I will dollar cost average on a timeline and add in some more during red days
Exactly. Old mate is getting way too bogged down in the terms used rather than what the strategy suggests
Sooo when a high conviction stock you 1000% believe in drops 15% because of some over reaction news, and the company fundamentals haven't changed. You wouldn't take advantage of that opportunity to load up? I have well diversified ETF's I auto purchase every paycheck. And individual 10 stocks I love, they get invested in regularly as well. But I keep cash on the side that I deploy anytime they go on sale. It's been working great for me.
how about buying undervalued businesses on red days??? Isn't that the best strategy?
I'm confused. how do you know what the share it's going to deliver over its life? Warren my base his theory on dividends.
What if you apply the strategy to the index
Well said! I’m thinking of investing in this fund as it has much better results than S&P morgan stanley investment funds - us growth fund a. Do you think it’s too risky ir expensive?
Being a fundamental investor makes everything so much easier and less stressful. I used to be one of those fortune tellers trying to figure out the pattern. Doesn't work, but feels good due to confirmation bias when you win.
Fundamentals haven’t meant anything for the past 4 months
@@MrTragic11 fundamentals isnt only numbers, it is also the material before which is more important, and that is industry and company analysis. Its hard to make sense of financials without context or relativity.
.Hi Hamish. Off topic i know but are you loving Thorn Industries at the moment?
Sorry. Thor Industries (THO)
Very well said! Nice new background
new camera / lens hamish?
No new equipment actually, just rearranged the lighting!
Bit of a pointless video. If you have a watch list of 2 stocks you want to buy, say Bubs at $1 and Kogan at $10. If you bought on a green or red day based on market conditions i.e stimulus announcement, US/China Tensions, you would be buying a stock at a discount if it's now in your price range, say Bubs 0.90c and Kogan $9.45. And if you want to be stock specific, after a few rises stock would have a little correction and dip from profit taking etc. If you bought then, same deal.
What do you mean with return cash over the rest of a stocks life? You mean dividends?
check out his 4-steps investing videos.
oh wow man, glad i stumbled on this channel! Finally some home grown genuine Aussie advice lol
:/ why can’t we grow them in Canada? It’s like it’s too cold here...
super explanation. Superb. Absolutely brilliant. I am glad m following you.
I am glad you are following me too!
Kinda new to this stock stuff but do you guys buy stock when it’s still green or red I bought dodge when it was red today and today it’s going up green and I’m down 25$ out of 200$ I invested help lol
Thanks for bringing us back to the right track! People are easily trapped by the short-cuts.
Well, to be complete, "buying on the red day" is ok, good if you did calculate your required return rate and the price hit that return rate.
Correct
As said in the video:" it's okay to buy on a red day, but not because of a red day."
Thank you
Great content as always!
great video brother!
No, this is such a mistake from Your side. Looses and wins are unproprtional and assymetric. Lets Say You bought a stock for 95$ and 105$ where the stock Rose to 150$. Lets assume that You are willing to invest 10000$. That means that you will buy 1052 shares for 95$ and 952 shares for 105 $. After the stock will rise 15780 $for 95 and 14 280 $. That means that your rate of return fin the case of 95$ is higher by approx 35%. Lets analyze the opposite that the stock drops to 80$. That means that You have 8416 (when You bought it at 9.) and 7616 (when You bought it at 10.5). That means that You lost unproportionally more for the same ammount of money. In the first case the stock will have to rise by approx 19% to breakeven, in the second case about 32%. The calculation becomes more dramatic when Your stock drops more for example by 50%, in this case You must double up to breakeven.
How about selling a put on the stock you want to own and wait for a red day? For example BRK/B put for $165 expiration 7/10 receiving close $100.
You have 2 disadvantages: Fundamentals could change till expiration and the stock could fall below the strike price and rise again before expiration. But I would say on average it is a good strategy.
Very nice explanation
But then you have investors such as Phil Town (who I respect) recommending buying a business in trenches once its price has fallen below the upper margin of safety limit. This in fact has affected some of his purchases such as OZK and BA. I don't understand why, once the price satisfies the MOS and ROR, Phil does not build his entire position. So many opportunities can be missed this way. I know this is not exactly what you are referring to, but it us along the same lines. Nice vid mate!
It's because he uses options to tranch in and lower his cost basis or to manufacture his on sale price, it makes alot of sense once you understand the options strategy. Also it's simply to help you psychologically to have money left to buy more should the stock keep going down your happy buying more vs being mad you bought too soon.
@@slyguy18 interesting. I don't know much about options.
hey Good video Hamish, I agree with you. Btw, I first found your channel when you were doing a 10-k analysis video, would it be ok if I ask you where you learned to do that? And as always, keep up the good work, I would really like to see your channel grow faster man.
I have to ask, but what type of table and desklamp is that in the background? Looks really nice
Ikea :)
Hi Amish. Thanks for your useful videos. I am Italian and I would like to buy stocks of some Australian companies, but I do not understand what the dividend taxes are. Here in Italy the taxes are 26% but investing in a different country we need to pay taxes in both countries. Could you help me? Thanks in advice. DAVIDE
I don't think he could help. Taxes are different for every country. In general, Italy makes a deal with Australia and you have to pay 15% (withholding tax) instead of 30%. And for this 15% you get a discount in Italy on Italian taxes. Check this with your tax administrations before you invest.
@@fabianstoll thanks! So kind
All Chinese ev are promising but double less than 2 weeks so much so the valuation in relation to the best forecast of revenue
Are grossly imbalance
So now waiting it to fall further before investing
🧡💛💚💙 Why are you guys Disliking this video? Hamish is right. These RUclipsrs are peddling *generic advice* and people take it seriously. There are people who are going to get CRUSHED following these "overly simple" strategies.
🧡💛💚💙
Shorted the US market when the S&P 500 reached 3200 points. I can't believe how bullish the market is
7,600 views and under 500 likes? Hamish my friend you deserve better.
What a nonsense strategy 😂😂
I think you did this video a disservice by not using an actual example of a real stock when buying on red.
Should showed buying VOO , SPY or VTI on red days consistently versus just dumping X amount of dollars consistently
Or even Apple , Micro , etc etc
I was expecting the misunderstood quote to be the one about buying when there is blood in the streets.
I get that refusing to buy if it’s a green day isn’t a good idea BUT I know you like to wait for when the share price hits your buy target aka when the price drops. And what colour is it when your target companies hit your buy price? It’s red. This video is contradictory to your beliefs.
Only if you been following that stock for a while... sometimes u just recently find out about a stock and u analyze it and find that its undervalued
yes but he performs a thorough analysis before getting to his intrinsic value/price, which is the price you should compare the market price to and that should determine whether you buy or sell NOT if the ticker is in red/green.
@john At the end of the day, the ticker will still have to be red for it to hit the buy target. Thus, we get to my conclusion of this video being a contradiction
@@MrTragic11, you completely missed the point of the message today.
Great video Hamish. Unfortunately, most people are unwilling to do the work to actually determine an Intrinsic Value of a company because it's not an easy or quick process when done correctly! This is why my analysis videos are 30-90 minutes long haha. Hopefully, the recent pullback has showed investors the importance of fundamentals. Value Investing makes sense logically, and thats why it's a great way to invest while also being able to sleep well at night! :)
- Shailen
We need a house tour hamish
Do you have a twitter account
Hell yes! This analysis is exactly what I was thinking about his video
Time in the market > timing in the market
Meet Kevin makes a fkton of money that he can just throwaway at anything lol dude has a high risk tolerance in his investments he's stock portfolio is like 90% Tesla
If you've done your homework and know which stocks you're tracking, there's nothing wrong with trying to get it at a lower price.
To a trader, or investor, buying on red days makes perfect sense. Any thing else is just stupid, and 180 degrees out of phase. "In my opinion" !!!!!!!!!
Great content again! As u said, crazy "strategy" to buy just on Red days.
Nice explanation 👍🏻
You’re taking the guy’s word literally. He doesn’t mean this way, its bigger than that
Is it though? He literally says he never buys green...
Investing is not trading. Have you not made a "distinct misinterpretation" of the Buy Red mantra?
This video is irrelevant info for short-term traders: Minutes, hours, days etc. Perhaps you could have clarified.
This is exactly what I needed to hear before my next play! Thanks for putting everything into perspective!
Hi , been watching sos . Yes or no
Please review on 2D material company
High quality, wide moat businesses will never be undervalued in a traditional sense. Cheap is cheap for a reason, and more often than not you will find yourself in a lot of value traps if you only look for "undervalued" businesses. Growth investors will never measure a company' the same way as a value investor would. That's why no value investors own Amazon - it was never cheap enough. As a result value investors consistently underperform in today's market. Like Berkshire Hathaway has underperformed the last 20 years.
Literally nothing in your comment provides any value at all.
Hope you like your new place. :)
Congrats on the move HH the place looks great. The fundamental advice re: investing is A grade !!!
dude, nice backdrop, cool place!
Thanks!
It's a table and a lamp
I was waiting for this video! Meet Kevin made a god awful video on investing he needs to stick to real estate
He’s pretty spot on now
are you and Brandon making a statement with the hats? ahhahaha
"borrow money" yeah no. And you agree with the first part? Investing your life savings is bad enough, investing money you don't even own and then paying interest, stupid.
beta?
I saw a video of this guy (1:10min) yesterday, its an awful financial channel.
Don't listen to this guy.
This guy.....