What are some of your bad investing habits? Share with me in the comments! An important part of investing success is planning it all out. Get my free guide to map out your investing journey: bit.ly/2QJLV9S
I invested to heavily in baseball cards when I should have been buying basketball and football cards also. Maybe baseball will be more popular in 20 years when I sell them.
My bad habit is going into debt to buy stocks, margin specifically. Everyone knows it’s bad idea, I know it’s a bad idea. But when I see stocks at what i consider stupid cheap prices(hello Apple below 140 dollar) i just buy. Don’t have a mortgage, don’t have a car loan or consumer credits, no CC debt. But boy do I have some debt on stock. Dividends cover the interest 2x over since the debt is in low interest euro but every time the market is red an entire week I get kinda nervous...
Jason Fan Club Sektors can be cyclical too, there are lists which rank sectors from best to worse for each year and it’s pretty much a Merry go round. Honestly? If you understand the sector well, pick the best companies in it and buy at a bargain. I’m a bit envious, your stocks flying high is only good if you want to sell them, I want to buy more of my favourite stocks but they are at stupidly high valuations...
I really like your attitude man. Im 36 and when I was your age I had a couple grand as well but I didn't have half the sense you have. You're very young. Educate yourself as much as possible. Stay in school. Learn to invest wisely. Of course make your mistakes. Learn from them. Listen to the advice of people who know more. Good luck with all your plans. That's all I can say for now because I'm only starting my journey now. Like I said, if I had had more sense when I was your age, I would be rich by now. All the best.
@@OnEEmONErD Neither when to sell the companies. Shoud I sell them when price dropped 10%? Or 20? 30? When should I sell the stock? In fact, when you know a company is doomed, everyone knows that and the company costs about zero. Market saw the "buy leaders" strategy in 1990s with dot-coms bubble, in 1960s with the Nifty Fifty stocks, in 1920s. It does not work in the long term.
@@superdingo9741 If you understand the company or how to invest, you'd know to abandon ship even if the stock price of said company is increasing. That's at least the principles he's offering which really is a simplified explanation of Warren Buffett's investing principles.
I'm 23 yrs old, and I really wanna save and invest my money in a good way, I wanna save now and enjoy my money later......thank you so much for this wonderful tips, I believe it will make a change in my life.
My biggest problem has been to keep an asset long after the asset peaked and then lost money, with no indication of recovery. I disagree with your assessment on diversification; I recouped all 2008 losses within 1 1/2 yrs and made profit through diversification from 2010 and into 2018. Otherwise many good points. Somewhere around 2008 and 2009 I started to buy, buy, buy.
I am so happy I discovered Phil Town & his philosophy on investing & money management! I am learning so much & just registered for the upcoming online virtual seminar. I also just purchased "Rule #1" & can't put the book down! I didn't understand why I couldn't find someone to discuss (in a simple way) how to buy stocks like Warren Buffet & minimize loss & to not diversify in mutuals (like Dave Ramsey & others recommend). My gut told me all the diversifying into many companies seemed more risky than investing into known companies, but everywhere I turned just the opposite was being preached to me. Thank God I stumbled upon a Phil Town RUclips video. You have no idea how my world has changed & how excited I am!
Strongly agree on all of these. This video will be useful to watch when I'm tempted to sell when stock prices drop, and buy when prices seem to keep going higher.
At 29, with a decent salary and a few grand lying around, I’ve started investing (long term) into individual stocks using methods you mentioned, and I’ve seen a net 45% ROI so far. Not too shabby. Also just opened up a jewellery brand with the wife. The 30s are certainly the years for laying down a strong foundation for a more comfy lifestyle.
I have never found someone who lines up with my goals as much as you do! Im so happy I found your channel. Everything you say is music to my ears. So insightful.
Once I decide to invest money, I consider that money 'lost'. Erased from my life. And I haven't sold a single stock so far. It just makes investing a lot easier on the head, not having to worry it. Invest and forget. May not be the best strategy out there, but it works for me!
@@LT-us5qt Yes, theoretically, but you can apply that very same logic all the way down to daytrading... you can make money from a 10 cent change in price, but it requires you to know where the price will go. Which is really hard. When will it stop? When will it go back up? These are the questions I avoid by just keeping the stocks and trusting that they will go up in the long run.
Wow, just found this channel! I love the way you break things down in an easy to understand way. You take what could be a boring topic, and somehow make it easy and fun to learn. I'm going to implement everything you talk about and hopefully become a more competent investor. Thank you!
People reference Warren Buffett in almost every video as a brilliant financial guru and they skip completely the part about him being one of the biggest Insider Traders on the market. Buffett buys some stock, for ex. Boeing, and 2 days later we hear on the news that this company will be getting a huge loan from the government and its stock goes up tremendously, while Buffett had goten that piece of information 2 days earlier. I'm not saying that he isn't very good, but once you are moving a lot of money, it's relatively easy to get privileged information and make moves that most investors cannot possibly know.
I just started investing this year, unfortunately right when a lot of stocks were peaking. I certainly have bad habits I am working on. I have more stock when it has gone down though. When do you know when it is time to get out?
Phip have the gift to be not only a good looking senior with confidence, but he also speak fluently and direct. His advices based on pure logic, as they should. For all aspects of this video, I just say excellent job! He gives a new perspective, for not just been an investor, but to think as a partner of the enterprice of your choice. Is true, Buffet hold many stocks for +20 years. Lynch also suggest to let time for a share to give the most. I still can't understand, how some lame stocks with objectively poor economic elements, multiply their price fast, beyond any expectation!
Yep, the financial advisor mistake. Had one for about 16 months before I got smart. Made a bunch of investments I wouldn’t have made had I been doing it myself (or paying closer attention to what the FA was recommending). Still holding a few things that I don’t really want, waiting for prices to go back up.
One of the most commonly held misconceptions in investing is the idea that you must work with a financial advisor in order to be successful. I wrote a great blog about this, check it out here! bit.ly/2ImZSXI
Phil Town's Rule #1 Investing: your missing a lot of points here, but ok. Do you have an article on what a good advisor can do for you? Anyhow I’m a big fan, from your first book.
I would like to play devil’s advocate concerning your take on the selling of stocks. Technically speaking, isn’t it true that your wealth has not increased unless you sell? If you are unable to utilize the created wealth, what good is it? Should we wait until we’re almost dead to sell? Thanks for all you do, Phil!
What that all means is that if we had a way to watch the big guys, we could protect ourselves from a crashing stock price by getting out quickly. And we can, in fact, do exactly that. Check out my blog on this post bit.ly/2K188zO
My approach is to almost never sell. Unless something drastically changes with a company you own(fraud or accounting irregularities or chronic mismanagement). Own great dividend growers for decades and reinvest dividends. When you are ready to stop working turn off the reinvestment and have your dividends flow to cash and live off the dividend income. Just my 2 cents. Good luck to you
@@rustyshackleford1419 I’m not catching on what you are talking about as I’m very new to investing in my mid 50s. I will look into it so I can understand what you are saying or if you can kindly further elaborate, please?
Ray dalio is not wrong. His diversification is different than most people think though. he does not go out there and buy everything just to diversify. he just chooses to invest in stocks that have lower corelation with each other. Also, he has tons of buying power so it makes sense.
The liquidity of stocks makes people less likely to think long and hard before they buy. And not thinking long and hard before they buy makes them more likely to buy and sell in and out stocks. By thinking i mean more specifically fundamental analysis of the investment merits of a security.💪
I had ridden the market up and down in my 401K for years. When the planes hit the World Trade Center I realized I had to go to cash and my money market fund never "broke the buck". The S&P Went from 1400 to 690. It started to recover after a year or so and I got back in at 740. Many of my co-workers lost half the value in their accounts. I was making money on the way back up while they were just recovering. I never just "Stayed the Course" again.
Most people are not going to (nor do they know how to) research each stock as if they were buying the entire company. Buying index funds and being a passive investor is a great way for just about everyone.
I just gave 20K to RULRX, counting on you to care as much as I do. Thanx for all you do and the time you spend on us late bloomers, TD just advanced my options trading to allow credit spreads. Loved your 3day seminar and the 6 month class. praying for a correction to take advantage. Marty from Alaska
Hi Phil! Absolutely love your rational ideologies and thank you for connecting me with the Dhando investor (great book!). I just want to touch on using trading options during our long positions. With doing excess research on stock that you know so much about, would you also consider writing covered calls on this underlying stock you already own and have a vested interest in once it is nearing its intrinsic sell price (in your book, sticker price +20%)? I was basically wondering if you ever go down the options road or you just KISS. If the call goes above the strike price, thats good news and you sell with the premium and if it doesn't, you keep the premium etc. Would love your guidance! Cheers
My english or at least my logic is not perfect, thats why I have to ask: So do you regard buying a S and P 500 as a GOOD decision because you understand overdiversifying as investing into many single stocks? Or is it a BAD decision?
I need to get better with keeping money on the side and i need to be more patient. I started investing in January and already can see a big difference in my understanding compared to back then. great vid.
Sir just for clarification, do you not believe in diversification at all? For instance I have some reits I have taken my time to research and invest in, as well as consumer staples. Would you say that's a bad idea? If anyone else wants to share that has experience please do.
So what percentage if any should one portfolio consist of with the s&p500? Very curious how other people are diversifying their portfolio regarding the s&p
Right now the market is too emotional with so much volatility to invest properly. So I'm analyzing stocks, stacking money and reading investing books then when opportunity comes just pull the trigger.
Vazha Cooper well, you can’t time the market that’s true. However, my current investment strategy is really passive and defensive. And yes you can follow the advice from professionals who say that you must invest now since everybody is becoming sooo rich (sarcasm). But just think about why Berkshire Heathaway is sitting on the biggest pile of cash in history. Besides that, Phil said recently that people become rich in a crash since everything is on sale. I believe patience is key but everybody must act on their own believes
Vazha Cooper ah that kind of expert. I thought you meant Phil. I don’t have any experience with a portfolio manager. May I ask what kind of ROI you achieve annually (in %)
You are great for giving us this useful information. Thank you Sir. On the 10 th Feb 2021 I was over 35% in 4 months, and I did not sell, but then in march 2021 my portfolio fell to -3.6% and I kept holding. Now I`m 10.77%.(April) Would it be better to sell when i was over 35% and buy again in April same or different stocks? Will appreciate your comments/reply. Thank you
I saw a study that showed people who just invest consistently no matter how the stock market is performing generally perform better than people who wait for the "right" time to get into the stock market. Does he ever touch on this?
100% agree with you. Usually people lose money because of emotions! Once we manage our emotions in investing well, our return on investments will definitely improve. Thanks for sharing your thoughts! 😃😃
The core tenet of being a Rule #1 Investor involves buying wonderful businesses at fair prices. In this week’s episode, we discuss the importance of analyzing a business to ensure you’re getting a great deal, the similarities between buying real estate and buying stocks, and the role emotions play in all buying decisions. bit.ly/2wOMAO8
I broke most of the bad habits when I read your book, the one habit that gets me at times is my itchy trigger finger. It gets very emotional very quickly when you see you're making or losing a small percentage
We do a discounted cash flow analysis in business school to figure out what that pile of cash that’s going to happen in the future is worth today. We call that same analysis a margin of safety analysis in Rule #1 Investing. Check out the entire post on my blog bit.ly/2HYcPbs
I’m still new and my question is how do I know when a company goes on sale? And also, so you’re saying not to invest money every two weeks from my paycheck?
First off, we make a list of wonderful companies that have Meaning to us-that is, we find companies that we understand and that have proven, durable competitive advantages (Moats). You can start off small and build from there. bit.ly/2MEIOBO
Its hard to be patient Im holding myself back, Im salivating for a company actualy 2 companies right now. One question Phil what effect will the central banks have on the stock market if they keep interest rates low or even if they cut them further?
Based on Payback Time and Yield, JOSB looks buyable to me IF you truly understand the business - how it competes. So I think it comes down to Moat. Dig in here to see who is out there who can blow these guys up and how they might do it.: bit.ly/2WFq0H5
You needing help investing, Try investing in the stocks markets with an expert. I earn $35k every month from my investment in stocks. Investing in stocks under Mr Shawn Nicholas is the best thing that has ever happened to me.
How do you know when to put more money into a company? Obviously if it feels way above intrinsic value you wouldn't buy much but is it better to hold cash and only buy the dips or should I continuously put money in with some reserve cash ready for dips?
I went with the late great Jack Bogle approach. Passive investing not buying single stocks. I Purchased the total stock market index that way i get the whole us market. The i purchased a International fund. So i have those too.
Hey Sylvester! In this beginner’s guide to investing, we’ll cover the 10 steps you need to know to get started investing and growing your wealth in the stock market: bit.ly/33RmXL3
Let's say you have your watch list set, but have no candidates to invest in due to margin of safety...... Where to put the cash in the meantime, just accept money market rate from brokerage or put into Short-Term Bond ETF, maybe a Preferred Share Closed End Fund for Dividends? Where do you typically put your idle cash while you are being patient?
Your communications skills are amongst the best and although it is a natural skill, you still have to know what you are talking about and clearly you do. Thank you for the videos! I’m going to go play now.
About the rule on giving someone else your money to invest. My brother, does not care nor does he want to learn about investing, he doesn't even have a basic bank account. So I am trying my best to invest on his behalf with the money he's made working. However, I would like for him to eventually control his own finances as he needs to learn how to be financially independent. What would be an effective way to teach him this?
You basically suggest to people to do what Warren Buffet does, but... after hours. Amateur investors will do well by getting a cheap stock index fund, like Vanguard S&P 500. This is 100% passive and doesn't require any skill or time. Most people aren't professional investors and will never be. For every Warren Buffet there is a million Joes who have a job and some savings to grow. These Joes are never going to get good at investing, because it's a serious profession which requires time, skill and talent to master.
Hi Phil, I found this channel late, can relate to most of the advise you provide, It’s simple plain and straightforward I like it, As an amateur investor I find your advise invaluable, Thank you 😁 Good to have an Uncle Phil giving financial advise to budding investors 👍
Never chase the signals. What you want to do is be patient and wait until you get all three positive signals in the same narrow time frame -- say a week to two weeks. bit.ly/2Kc7bF4
u are so so intelligent i am a newbie and i am an old man who is from korea By the way u did have a content that was talking about the websites that show what stocks all those top billionaires are buying i did jog down in the past but i lost it so can u tell me which video does show that information i do really enjoy ur channel altho i am working so i cannot watch and learn as much as i wish Have a great day Warm Aloha from Hawaii
Mr. Phil I 100% agree with you that smart long term investment is the only way to success. But how come I see a lot of Swing and Day trader out there making 5-6 figure/ year by forecasting the market...So that kinda make me demotivated for long term investment. Can you change my mind please
Did I understand correctly that S&P 500 is a bad idea according Buffet? Berkshire Hathaway's Warren Buffett said passive investing in index funds like the S&P 500 Index "makes the most sense" most of the time.
His opinion has been that unless you take the time to understand investing in specific businesses, indexes are the best way to go. So for most people, indexes are probably the best, but if you really know your stuff, you should be able to do better than an index over the long term.
Jason Andrews One decade ago, Warren Buffett took a $1 million wager that stashing money in an index fund would make you richer than if you entrusted it with hedge fund managers. So it means that you have to do better than fund managers (I assume they are specialized in this?).
I can't agree on the SP500/overdiversification part. Sure, if you've spent months or years researching a company you might get better returns than the market but the market can be and is often irrational so any system you may have may just be as much a shot in the dark as any. For the average investor, average being the keyword, they don't need to beat the average - they just need to match the average and beat inflation or the 90% that lose money in the market. So for a new investor, rather than throwing money carelessly trying to develop a system or method, or be paralyzed by fear and confusion and just tell yourself "I'll do it when I am sure", it's better to simply buy a reliable index to get your feet wet. Regularly DCA in and when you are finally comfortable enough, you may try to go for riskier investments with a smaller % while maybe continuing your index DCA to hedge against the risk.
I've done probably all of these (and learned my errors the hard way--- experience is truly the schoolhouse of fools) over the last 45 years. One are I still have problems with is when to get out after a good run. I would appreciate your thoughts on this.
What are some of your bad investing habits? Share with me in the comments! An important part of investing success is planning it all out. Get my free guide to map out your investing journey: bit.ly/2QJLV9S
I invested to heavily in baseball cards when I should have been buying basketball and football cards also. Maybe baseball will be more popular in 20 years when I sell them.
My bad habit is going into debt to buy stocks, margin specifically. Everyone knows it’s bad idea, I know it’s a bad idea. But when I see stocks at what i consider stupid cheap prices(hello Apple below 140 dollar) i just buy.
Don’t have a mortgage, don’t have a car loan or consumer credits, no CC debt. But boy do I have some debt on stock. Dividends cover the interest 2x over since the debt is in low interest euro but every time the market is red an entire week I get kinda nervous...
what to to when the industry you know best is bad (= a disaster) in the market?
Jason Fan Club Sektors can be cyclical too, there are lists which rank sectors from best to worse for each year and it’s pretty much a Merry go round.
Honestly? If you understand the sector well, pick the best companies in it and buy at a bargain. I’m a bit envious, your stocks flying high is only good if you want to sell them, I want to buy more of my favourite stocks but they are at stupidly high valuations...
@@sebastianbauer4768 same problem, many favorite stocks are overvalued. It feels like there is so much hype nowadays (not only stocks)
Im 17 with a couple thousand in savings I plan on investing when im 18 in 5 months, my plan is to avoid my parents’ check-to-check lifestyle
Nice name
I really like your attitude man. Im 36 and when I was your age I had a couple grand as well but I didn't have half the sense you have. You're very young. Educate yourself as much as possible. Stay in school. Learn to invest wisely. Of course make your mistakes. Learn from them. Listen to the advice of people who know more. Good luck with all your plans. That's all I can say for now because I'm only starting my journey now. Like I said, if I had had more sense when I was your age, I would be rich by now. All the best.
Wait for recession
You can do it now
Smart. How are you doing now?
Warren Buffet also advises to invest in low cost index funds such as s&p 500. What are your thoughts on this?
Picking winners over time is not as straightforward as Phil makes it sound. Indexing and patience will work for most everyday investors!
Indeed. Phil "forgot" to mention that most of companies existed in the past have gone by now.
Patience is the hardest thing in investing
@@superdingo9741 he's not suggesting you hold on to companies no matter what now is he?
@@OnEEmONErD Neither when to sell the companies. Shoud I sell them when price dropped 10%? Or 20? 30? When should I sell the stock? In fact, when you know a company is doomed, everyone knows that and the company costs about zero. Market saw the "buy leaders" strategy in 1990s with dot-coms bubble, in 1960s with the Nifty Fifty stocks, in 1920s. It does not work in the long term.
@@superdingo9741 If you understand the company or how to invest, you'd know to abandon ship even if the stock price of said company is increasing. That's at least the principles he's offering which really is a simplified explanation of Warren Buffett's investing principles.
I'm 23 yrs old, and I really wanna save and invest my money in a good way, I wanna save now and enjoy my money later......thank you so much for this wonderful tips, I believe it will make a change in my life.
Just bought your book! Read the first few chapters and look forward to learning more 😀👍
Awesome, Chris! Make sure to check out my blog too! bit.ly/2wGy7nm
great information.....
buy on market fear.....sell on market greed.....and never lose long term vision.
I needed to hear this, even though I already knew this, I needed to be REMINDED !
My biggest problem has been to keep an asset long after the asset peaked and then lost money, with no indication of recovery. I disagree with your assessment on diversification; I recouped all 2008 losses within 1 1/2 yrs and made profit through diversification from 2010 and into 2018. Otherwise many good points. Somewhere around 2008 and 2009 I started to buy, buy, buy.
I am so happy I discovered Phil Town & his philosophy on investing & money management! I am learning so much & just registered for the upcoming online virtual seminar. I also just purchased "Rule #1" & can't put the book down! I didn't understand why I couldn't find someone to discuss (in a simple way) how to buy stocks like Warren Buffet & minimize loss & to not diversify in mutuals (like Dave Ramsey & others recommend). My gut told me all the diversifying into many companies seemed more risky than investing into known companies, but everywhere I turned just the opposite was being preached to me. Thank God I stumbled upon a Phil Town RUclips video. You have no idea how my world has changed & how excited I am!
I'm 16 and trying to get into investing, Your videos are helping me so much!!
Thank You.
Strongly agree on all of these. This video will be useful to watch when I'm tempted to sell when stock prices drop, and buy when prices seem to keep going higher.
At 29, with a decent salary and a few grand lying around, I’ve started investing (long term) into individual stocks using methods you mentioned, and I’ve seen a net 45% ROI so far. Not too shabby. Also just opened up a jewellery brand with the wife. The 30s are certainly the years for laying down a strong foundation for a more comfy lifestyle.
I have never found someone who lines up with my goals as much as you do! Im so happy I found your channel. Everything you say is music to my ears. So insightful.
Once I decide to invest money, I consider that money 'lost'. Erased from my life. And I haven't sold a single stock so far. It just makes investing a lot easier on the head, not having to worry it. Invest and forget. May not be the best strategy out there, but it works for me!
Kristian Eliseussen it does I also hav the same mentality jus hold emergency funds nd invest the rest
its not lost its spent
lets say you got appl at 150. four months later its worth 210 and on the way back down to 175. so shouldnt you sell it at 210 and buy it back at 175?
@@LT-us5qt Yes, theoretically, but you can apply that very same logic all the way down to daytrading... you can make money from a 10 cent change in price, but it requires you to know where the price will go. Which is really hard. When will it stop? When will it go back up? These are the questions I avoid by just keeping the stocks and trusting that they will go up in the long run.
@@LT-us5qt you sell me the time machine, I'll start trading like that lol
Who’s in the longterm game? 👍
U r everywhere how many videos u have seen till today😂😂
Wow, just found this channel! I love the way you break things down in an easy to understand way. You take what could be a boring topic, and somehow make it easy and fun to learn. I'm going to implement everything you talk about and hopefully become a more competent investor. Thank you!
People reference Warren Buffett in almost every video as a brilliant financial guru and they skip completely the part about him being one of the biggest Insider Traders on the market. Buffett buys some stock, for ex. Boeing, and 2 days later we hear on the news that this company will be getting a huge loan from the government and its stock goes up tremendously, while Buffett had goten that piece of information 2 days earlier. I'm not saying that he isn't very good, but once you are moving a lot of money, it's relatively easy to get privileged information and make moves that most investors cannot possibly know.
I just started investing this year, unfortunately right when a lot of stocks were peaking. I certainly have bad habits I am working on. I have more stock when it has gone down though. When do you know when it is time to get out?
kept them or sold in panic?
Index funds…….. you never get out. Look at chart on sp500.
Kept them. And yes I know, it seems to keep going up over time. If you just hold long term
Phip have the gift to be not only a good looking senior with confidence, but he also speak fluently and direct. His advices based on pure logic, as they should.
For all aspects of this video, I just say excellent job!
He gives a new perspective, for not just been an investor, but to think as a partner of the enterprice of your choice.
Is true, Buffet hold many stocks for +20 years.
Lynch also suggest to let time for a share to give the most.
I still can't understand, how some lame stocks with objectively poor economic elements, multiply their price fast, beyond any expectation!
Yep, the financial advisor mistake. Had one for about 16 months before I got smart. Made a bunch of investments I wouldn’t have made had I been doing it myself (or paying closer attention to what the FA was recommending). Still holding a few things that I don’t really want, waiting for prices to go back up.
One of the most commonly held misconceptions in investing is the idea that you must work with a financial advisor in order to be successful. I wrote a great blog about this, check it out here! bit.ly/2ImZSXI
Phil Town's Rule #1 Investing: your missing a lot of points here, but ok. Do you have an article on what a good advisor can do for you? Anyhow I’m a big fan, from your first book.
Thanks Phil.
Amazing information! Phil, you really go out of your way to instruct us. I am really grateful, thank you.
3:16 - 5:20 Well said! I couldn't agree more. And I like your other advice too.
Thanks Uncle Phil!
I would like to play devil’s advocate concerning your take on the selling of stocks. Technically speaking, isn’t it true that your wealth has not increased unless you sell? If you are unable to utilize the created wealth, what good is it? Should we wait until we’re almost dead to sell? Thanks for all you do, Phil!
What that all means is that if we had a way to watch the big guys, we could protect ourselves from a crashing stock price by getting out quickly. And we can, in fact, do exactly that. Check out my blog on this post bit.ly/2K188zO
My approach is to almost never sell. Unless something drastically changes with a company you own(fraud or accounting irregularities or chronic mismanagement). Own great dividend growers for decades and reinvest dividends. When you are ready to stop working turn off the reinvestment and have your dividends flow to cash and live off the dividend income. Just my 2 cents. Good luck to you
@@rustyshackleford1419 I’m not catching on what you are talking about as I’m very new to investing in my mid 50s. I will look into it so I can understand what you are saying or if you can kindly further elaborate, please?
*hears rule on diversification*
Ray Dalio has left the chat...
Legitimately a good tip
I thought that too!😂
Ray dalio is not wrong. His diversification is different than most people think though. he does not go out there and buy everything just to diversify. he just chooses to invest in stocks that have lower corelation with each other. Also, he has tons of buying power so it makes sense.
The liquidity of stocks makes people less likely to think long and hard before they buy. And not thinking long and hard before they buy makes them more likely to buy and sell in and out stocks.
By thinking i mean more specifically fundamental analysis of the investment merits of a security.💪
Over 120 million Americans fall into the middle-class. Take a look at my Money Traps blog bit.ly/2QRO6Z8
I had ridden the market up and down in my 401K for years. When the planes hit the World Trade Center I realized I had to go to cash and my money market fund never "broke the buck". The S&P Went from 1400 to 690. It started to recover after a year or so and I got back in at 740. Many of my co-workers lost half the value in their accounts. I was making money on the way back up while they were just recovering. I never just "Stayed the Course" again.
Most people are not going to (nor do they know how to) research each stock as if they were buying the entire company. Buying index funds and being a passive investor is a great way for just about everyone.
Great video Coach. You are so right. Thanks again.
I just gave 20K to RULRX, counting on you to care as much as I do. Thanx for all you do and the time you spend on us late bloomers, TD just advanced my options trading to allow credit spreads. Loved your 3day seminar and the 6 month class. praying for a correction to take advantage. Marty from Alaska
Hi Phil!
Absolutely love your rational ideologies and thank you for connecting me with the Dhando investor (great book!). I just want to touch on using trading options during our long positions. With doing excess research on stock that you know so much about, would you also consider writing covered calls on this underlying stock you already own and have a vested interest in once it is nearing its intrinsic sell price (in your book, sticker price +20%)? I was basically wondering if you ever go down the options road or you just KISS. If the call goes above the strike price, thats good news and you sell with the premium and if it doesn't, you keep the premium etc.
Would love your guidance!
Cheers
My english or at least my logic is not perfect, thats why I have to ask: So do you regard buying a S and P 500 as a GOOD decision because you understand overdiversifying as investing into many single stocks? Or is it a BAD decision?
GREAT ADVICE !!!!! Watching your videos is like we are sitting around at the table having coffee.
Thanks for sharing the experiences and the pieces of advice !
Thank you for watching!
I need to get better with keeping money on the side and i need to be more patient. I started investing in January and already can see a big difference in my understanding compared to back then. great vid.
Phil,
great content as always -THX 👊🏻🤛🏻
Sir just for clarification, do you not believe in diversification at all? For instance I have some reits I have taken my time to research and invest in, as well as consumer staples. Would you say that's a bad idea? If anyone else wants to share that has experience please do.
So what percentage if any should one portfolio consist of with the s&p500? Very curious how other people are diversifying their portfolio regarding the s&p
Right now the market is too emotional with so much volatility to invest properly. So I'm analyzing stocks, stacking money and reading investing books then when opportunity comes just pull the trigger.
jose de la cruz same!
Yes, I've been doing the same for the last 5 years.
Vazha Cooper well, you can’t time the market that’s true. However, my current investment strategy is really passive and defensive. And yes you can follow the advice from professionals who say that you must invest now since everybody is becoming sooo rich (sarcasm). But just think about why Berkshire Heathaway is sitting on the biggest pile of cash in history. Besides that, Phil said recently that people become rich in a crash since everything is on sale. I believe patience is key but everybody must act on their own believes
Vazha Cooper ah that kind of expert. I thought you meant Phil. I don’t have any experience with a portfolio manager. May I ask what kind of ROI you achieve annually (in %)
Time in the market trumps timing the market. Get in there.
I believe every need a keen understand of these.
excellent woekshop in san Diego jan/2020... thanks phil!
You are great for giving us this useful information. Thank you Sir.
On the 10 th Feb 2021 I was over 35% in 4 months, and I did not sell, but then in march 2021 my portfolio fell to -3.6% and I kept holding. Now I`m 10.77%.(April)
Would it be better to sell when i was over 35% and buy again in April same or different stocks?
Will appreciate your comments/reply. Thank you
Amazing video! I appreciate your job! Congrats.
Panic buying/selling is very trendy now. What would you do? Should we buy low stock like Tesla Apple etc?
I'm a simple man. I see invest, i subscribe
I saw a study that showed people who just invest consistently no matter how the stock market is performing generally perform better than people who wait for the "right" time to get into the stock market. Does he ever touch on this?
100% agree with you. Usually people lose money because of emotions! Once we manage our emotions in investing well, our return on investments will definitely improve. Thanks for sharing your thoughts! 😃😃
The core tenet of being a Rule #1 Investor involves buying wonderful businesses at fair prices. In this week’s episode, we discuss the importance of analyzing a business to ensure you’re getting a great deal, the similarities between buying real estate and buying stocks, and the role emotions play in all buying decisions. bit.ly/2wOMAO8
Thanks Phil, i always like hearing you speak about stocks - you make it easy to understand!
I broke most of the bad habits when I read your book, the one habit that gets me at times is my itchy trigger finger. It gets very emotional very quickly when you see you're making or losing a small percentage
We do a discounted cash flow analysis in business school to figure out what that pile of cash that’s going to happen in the future is worth today. We call that same analysis a margin of safety analysis in Rule #1 Investing. Check out the entire post on my blog bit.ly/2HYcPbs
I’m still new and my question is how do I know when a company goes on sale? And also, so you’re saying not to invest money every two weeks from my paycheck?
First off, we make a list of wonderful companies that have Meaning to us-that is, we find companies that we understand and that have proven, durable competitive advantages (Moats). You can start off small and build from there. bit.ly/2MEIOBO
Its hard to be patient Im holding myself back, Im salivating for a company actualy 2 companies right now. One question Phil what effect will the central banks have on the stock market if they keep interest rates low or even if they cut them further?
Based on Payback Time and Yield, JOSB looks buyable to me IF you truly understand the business - how it competes. So I think it comes down to Moat. Dig in here to see who is out there who can blow these guys up and how they might do it.: bit.ly/2WFq0H5
Churning and commission erodes earnings. Diversification is a retail investors best friend.
Excellent informative video Phil, enjoyed it!
You needing help investing, Try investing in the stocks markets with an expert. I earn $35k every month from my investment in stocks. Investing in stocks under Mr Shawn Nicholas is the best thing that has ever happened to me.
How do you know when to put more money into a company? Obviously if it feels way above intrinsic value you wouldn't buy much but is it better to hold cash and only buy the dips or should I continuously put money in with some reserve cash ready for dips?
Just GREAT thanks for sharing Phil
I went with the late great Jack Bogle approach. Passive investing not buying single stocks. I Purchased the total stock market index that way i get the whole us market. The i purchased a International fund. So i have those too.
Thanks for the advise. This is definitely something I'm looking into doing so I'm on my research-stage. This was also helpful to learn what Not to do
How / Where do u start ??? Taking everything into account, debts,living expenses etc.....?
Hey Sylvester! In this beginner’s guide to investing, we’ll cover the 10 steps you need to know to get started investing and growing your wealth in the stock market: bit.ly/33RmXL3
How would you know if the management is good ?
Let's say you have your watch list set, but have no candidates to invest in due to margin of safety...... Where to put the cash in the meantime, just accept money market rate from brokerage or put into Short-Term Bond ETF, maybe a Preferred Share Closed End Fund for Dividends? Where do you typically put your idle cash while you are being patient?
Very Helpful! I'm thankful to have watched this video! Thank you very much!
I have read your daughter's book invested....she is just like you.
Your communications skills are amongst the best and although it is a natural skill, you still have to know what you are talking about and clearly you do. Thank you for the videos! I’m going to go play now.
Outstanding info!!! Thank you
Great advice and mentorship Phil. You're a great inspiration
Thoughts on dollar cost averaging weekly?
Great presentation sir!
Great buffet summary
Phil, what are your thoughts on Boeing & Tesla? I feel like Boeing can be bought at 300$ and lower in the near future.
About the rule on giving someone else your money to invest. My brother, does not care nor does he want to learn about investing, he doesn't even have a basic bank account. So I am trying my best to invest on his behalf with the money he's made working. However, I would like for him to eventually control his own finances as he needs to learn how to be financially independent. What would be an effective way to teach him this?
He will get there, Ryaken! Tell him to get to reading my blog already! bit.ly/2WIknYY
should you buy stocks when the market drops, is that a good strategy?
Yes!
You basically suggest to people to do what Warren Buffet does, but... after hours. Amateur investors will do well by getting a cheap stock index fund, like Vanguard S&P 500. This is 100% passive and doesn't require any skill or time. Most people aren't professional investors and will never be. For every Warren Buffet there is a million Joes who have a job and some savings to grow. These Joes are never going to get good at investing, because it's a serious profession which requires time, skill and talent to master.
Thanks Phil! Good watch.
Wow great video for the beginner investor
Hi Phil, I found this channel late, can relate to most of the advise you provide, It’s simple plain and straightforward I like it, As an amateur investor I find your advise invaluable, Thank you 😁 Good to have an Uncle Phil giving financial advise to budding investors 👍
Amazing advice!!!
Wise Man.
How many companies should I invest in to avoid extreme risk (maximum no. Of companies to invest in) ??
20
@@billyjohnson9166 Thank you sir..Stay blessed
This is so motivating!
Great advice! I am a new investor in the market. I'm still learning from your advice.
Fabulous advices sir. Keep up this great job and let us learn more and more into 2020 and beyond.
My worst habit was chasing. So much so, “no chasing” is my first and second rule. Be patient and wait for all your criteria to be met!
Never chase the signals. What you want to do is be patient and wait until you get all three positive signals in the same narrow time frame -- say a week to two weeks. bit.ly/2Kc7bF4
u are so so intelligent i am a newbie and i am an old man who is from korea By the way u did have a content that was talking about the websites that show what stocks all those top billionaires are buying i did jog down in the past but i lost it so can u tell me which video does show that information i do really enjoy ur channel altho i am working so i cannot watch and learn as much as i wish Have a great day Warm Aloha from Hawaii
Mr. Phil I 100% agree with you that smart long term investment is the only way to success.
But how come I see a lot of Swing and Day trader out there making 5-6 figure/ year by forecasting the market...So that kinda make me demotivated for long term investment. Can you change my mind please
Great tips. We started our youtube portfolio so we can manage our own money too and beat the s&p500
Did I understand correctly that S&P 500 is a bad idea according Buffet?
Berkshire Hathaway's Warren Buffett said passive investing in index funds like the S&P 500 Index "makes the most sense" most of the time.
His opinion has been that unless you take the time to understand investing in specific businesses, indexes are the best way to go.
So for most people, indexes are probably the best, but if you really know your stuff, you should be able to do better than an index over the long term.
Jason Andrews One decade ago, Warren Buffett took a $1 million wager that stashing money in an index fund would make you richer than if you entrusted it with hedge fund managers.
So it means that you have to do better than fund managers (I assume they are specialized in this?).
biggest profit ive got now is $500+
SBUX
I can't agree on the SP500/overdiversification part. Sure, if you've spent months or years researching a company you might get better returns than the market but the market can be and is often irrational so any system you may have may just be as much a shot in the dark as any.
For the average investor, average being the keyword, they don't need to beat the average - they just need to match the average and beat inflation or the 90% that lose money in the market.
So for a new investor, rather than throwing money carelessly trying to develop a system or method, or be paralyzed by fear and confusion and just tell yourself "I'll do it when I am sure", it's better to simply buy a reliable index to get your feet wet. Regularly DCA in and when you are finally comfortable enough, you may try to go for riskier investments with a smaller % while maybe continuing your index DCA to hedge against the risk.
Is there anyone else than Warren Buffet that you think is worth quoting?
It's really great advice..
Thank you for spreading your knowledge! Love your videos
Then why does buffet say he wants his fortune 90% s&p index and 10% bonds when he dies????
I've done probably all of these (and learned my errors the hard way--- experience is truly the schoolhouse of fools) over the last 45 years. One are I still have problems with is when to get out after a good run. I would appreciate your thoughts on this.
What about ETFs regarding #2
day trading especially if you made a profit the first time is hard to break.
Thank you so much to make me remember my philosophies.
How much cash to shares should I have now ?
Thank you sir... Excellent advice