hey there Tiffany Thomas with wealthy tiffany dot com and in today's video i'm
sharing with you how i purchased my first stock so i purchased my first
stock on August 3rd 2012 which was Netflix and it was right when Netflix
had taken a really big dip so I bought it for seven dollars and 70 cents I took
about half of my savings so just over twenty thousand dollars and bought
twenty six hundred shares of Netflix I recently sold all of those shares On
February 20th of this year for a stock price of three hundred and eighty six
dollars so if we do the math we can see that I am a millionaire now all because
of buying my first stock less than eight years ago okay maybe that's not how it
went down Netflix was actually not my first stock
although I do own Netflix and have made thousands off of it but hindsight is
2020 if only we knew what all the stocks were going to do over the years then we
could all be millionaires together unfortunately that's not how it works so
I want to share some things I did write when buying my first stock and some
things I did wrong and how I do it now so that you can be better at buying your
stocks all right if you're ready to dive in click that like button and we're
gonna get started shortly before I bought my first stock I had no idea
actually how to do that it wasn't nearly as popular as it is now but I knew I
wanted to buy some stocks I had a few friends that were really successful with
it and I had extra money to invest and I really wanted to grow my wealth in other
ways I did ask a few of my friends how they had bought their stocks but I
wasn't really sure what questions to be asking because I really didn't know
anything about it and I didn't want to seem really stupid so I went online and
looked at a few different blogs and gathered some information that way but I
did ask one of my friends which brokerage company she used I didn't
actually know it was called a brokerage company then so I basically just said um
how do you buy stocks like what are you using and she told me that she uses the
brokerage company Capital One because that's where she had her savings account
so it made it really easy to you transfer money over to her brokerage
account and she seemed to like the platform and the prices were pretty good
and I thought oh alright I have a Capital One say green
counts so that would be really easy for me to set up a brokerage account with
Capital One as well and one of the things that I did learn was to find a
brokerage company that charged really low Commission fees and honestly most
companies no longer charge this commission fees so it's not really that
important but back then most if not all companies were charging a Commission fee
and it was just a one-time fee that they would charge when you would buy or sell
a stock so he wanted to make sure that was kept really low so you didn't pay a
lot of extra money to purchase her stock especially if you were only buying one
share in capital one had a commission fee of $6.95 which was pretty low some
of the other companies were charging eight nine or ten dollars and one other
was charging four ninety five so I felt pretty good about the six ninety five
but going forward at Capital One has actually gotten rid of their brokerage
account so I moved my brokerage account over to Ally invest a LLY and they don't
charge a commission fee at all to buy or sell stocks so I would actually
recommend that company or even Vanguard that's where I have my Roth IRA and a
traditional IRA but they don't charge a commission fee to buy or sell stocks
either so honestly I would look for a company that is more established that
has been around for quite a while and that also offers other things that you
might be interested in for example Ally still has their checking and savings
accounts and Vanguard offers like I mentioned the Roth IRA or traditional
IRA or even custodial accounts so you could set up accounts for your children
or even your nieces or nephews and get them started with investing and the
reason I suggest going with a more established company is because of what
we have seen recently with Robin Hood when the stock market took a huge dip
people were not able to buy or sell during that time Robin Hood site had
gone down so when you're working with a newer company things like that could
happen so that's why I recommend going with a company that has been around for
a longer amount of time and with Vanguard you can also buy their index
funds or ETFs without a commission charge so if that is something you're
interested in investing in I would take that into consideration as well when
you're looking for a brokerage company and if you're interested in learning
more about index funds mutual funds and ETFs I do have a video that I created so
I I'll put a link below in the description
and you can check that out and if you already have a brokerage account that
you are using comment below and tell me which one you're using and why you like
it all right back to my experience of buying my first stock now that I decided
where I was actually going to purchase the stock from I needed to decide what
to stock to purchase and how much to invest I was a little scared to do this
so I thought I could just start out with just a few hundred dollars and then I
would become more comfortable with investing in stocks and I could go up
from there I was thinking would be really great to find a stock that was
low priced and would increase in price pretty quickly like everyone wants to do
right hence the Netflix example from the
beginning of the video so what did I do I went back to the blogs and websites
that I had looked at before and started diving into how they were choosing
stocks and which one could give me a stock recommendation and I found one and
unfortunately I can't remember which blog it was from but he went over the
process of why he chose this stock and why he thought it was going to rise in
price pretty quickly so I thought great I had actually never heard of the
company before but I thought this website seems legit he seems to know
what he's talking about and it was only about $22 to invest in the stock so I
thought why not I can buy one share of the stock and see how it goes
the stock that he recommended has a ticker symbol of EBS it's emergent bio
solutions and maybe you have heard of the stock because they are actually
working on a treatment for the pandemic that's going on in the world right now
but back then I had heard nothing about this stock so I went strictly off his
recommendation and bought the stock for $22.40 plus my $6 and 95 cent Commission
fee and this stock has risen in price to 61 dollars and 17 cents as the filming
of this video I bought one share of the stock on December 3rd 2013 for a total
price of 29/35 and I still have this stock today so it has doubled in price
over the period of about 8 years which is pretty good and I'm not going to sell
it because it's a good reminder of what I'm not going to do when I buy stocks
after I bought my first stock it felt really good knowing that I actually did
it but I also didn't feel like it was the
best way to buy a stock so I started talking to my friends again and asked
how they chose their stocks one of my friends said that she invests in
companies that she actually uses their products so I started thinking okay
which products do I use and are they on the stock market one of the things that
I really loved was shoes I had a lot of shoes and I still have a lot of shoes
and not quite as many as I used to and I don't buy nearly as many pairs of shoes
as I used to but one brand of shoe that I really liked was Steve Madden I
invested in Steve Madden for thirty six dollars and three cents plus my six
dollar ninety five cent Commission fees for a total of 42 dollars and 98 cents
on December 18th 2013 and today that stock would be worth about $50 but if
you were to actually Google the price of Steve Madden it would not show $50 but
the difference is because of the stock being split which I'm not going to talk
about in this video and then I thought I need to ask my other friend he seems to
be really successful with investing in the stock market and investing in real
estate so he must be a good investor overall and I asked him how he chooses
his stocks and he said he also by his company is that he's familiar with but
he likes to have a little more risk so he'll buy even newer companies that
may have that quick jump in price and I thought okay he has his own strategy and
I decided to ask him what his favorite stock was and he said Marriott he loves
to travel all of the time and mainly stays at Marriott's so I thought okay
that sounds like a good stock I'll buy that so I also purchased this stock in
December of 2013 for 47 dollars and 89 cents and now it is priced at about $79
but earlier this year it was priced at 140 so I'm sure it will continue to rise
over time you know no one is actually staying at a hotel right now and after
going through this process after purchasing at my first few stocks I
thought I really need to decide on my own strategy was going to work for me
and what I feel comfortable with so the way I buy stocks now is choosing
companies that I am familiar with not necessarily ones that I actually use but
most of my friends may use or it is very popular and the company is more stable
it's not a brand new company and they seem to have the potential to continue
to grow over time they're comfortable adjusting with what's going on in the
market so they can continue to be a successful company over time and
I take a more long-term perspective I'm not so much looking for the hot tip of
the day to make money really fast and then cash out my stock I am more about
okay what's a good stable company that is definitely going to grow over time
that I can hold for the long term so another stock that I bought was Facebook
that was a company that I was using and a ton of my friends were using and a lot
of people were getting on board with Facebook and I thought you know what
they have a pretty good potential to grow their company and I had no idea how
much they would actually grow but it seemed like a good investment to me and
I am glad that I invested in Facebook and I bought other stocks using the same
method over time and I have seen such a high return over a hundred percent
return on my individual stocks I really like investing in individual stocks yes
there is more of a risk but the return you can get is greater so I don't mind
having that greater risk because of the greater return that's possible but I
don't have all of my investments in individual stocks I actually invest in a
total stock market fund it's actually the Vanguard total stock market fund so
this helps to decrease my risk of investing in individual stocks because I
know that the total stock market fund will continue to rise over time with the
stock market and companies that aren't doing good will be taken off the stock
market and new companies will be added on and I don't have to worry about that
I can just keep investing in the fund and it's a great long-term investment
that I don't really have to keep my eye on whereas with my stocks I have to keep
my eye on those stocks and make sure that the companies are still doing well
that the original reasons I purchased those companies are still true today so
if I think a company is no longer going to grow over time or be a good stock
over the long term then I cut my losses and I sell that stock and I invest in
something else that I think is going to give me a great return over the long
term so it's important when you are investing
in individual stocks to keep an eye on them and make sure the original reasons
you have purchased them are still valid today otherwise cut your losses and
invest in something that is going to give you a greater return as you can see
I did not become a millionaire by purchasing my first stock but I have
learned a few things over the years a lot more comfortable with my
investment strategy now than I was when I purchase my first stock but it was
important for me to get started and actually purchase that first stock even
if I didn't do it correctly because I knew I could learn and do it better over
time and like I mentioned one important thing that I learned was keeping that
long-term mindset as we've seen recently the stock market took a huge dip but I
did not sell off all of my investments or any of my investments I actually
invested more in the stock market because stocks were on sell and I knew
those companies would continue to rise over time because they're good companies
and the reasons that I originally invested in them had not changed it was
just things in the economy that had made their stock price fall so keep that in
mind when you are investing in individual stocks that things in the
economy may make that stock price fall but it doesn't mean it's a bad company
and that you need to get rid of it continue to keep that long term
perspective and if you have already purchased your first stock put it in the
comments below tell me what your first stock was and why you actually bought it
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