Did you know that half of the US millennial millionaires (44 percent) live in a single
state - California? The question that you probably have in mind is - do they move to
California after becoming millionaires or before?
But when you look at what's happening, the answer is clear. Silicon Valley is the center
of innovation and startups, so it's not surprising that young talented people move to California
to compete for the most lucrative jobs in tech. Software engineers easily make a few
hundred thousand dollars here. But that's not what makes them millionaires. Most companies
use stock options to pay employees. If you are a talented employee and you work
for Google, for example. They don't want to lose you! At the core of innovation and progress
is the human mind. So the best way to keep you working for them is to simply pay you
with stock option. You will receive a certain amount of stocks if you work for the company
for 3,5 or 10 years. A year passes or 2, and you want to change
your job and work for Zuck because he changed the name of the company to Meta. You can't!
Because if you leave, your options are going to expire, you have to stay till the end of
your contract to use that option. That's primarily what makes them millionaires.
In fact, when companies pay their employees with stocks, they are tax-deductible, so everyone
benefits. The company creates these stocks out of thin air. They are tax-deductible,
and they are worth a lot of money which makes these talented people millionaires.
It's a win-win situation. But it's not unusual for wealth to accumulate
in one city or state or in the hands a small group of people. 43.4% of the world's wealth is
controlled by the top 1%. The Pareto principle is visible everywhere.
But what we want to focus on in this video is, what are the investments you have to make
to be in the top 1 percent? What industries are going to dominate the future? And where
should you invest to never work again? We will answer all of these questions and
many more. But before we do that, give this video a thumbs up, and here is a little disclaimer.
This is not financial advice and everything that's said in this video is for educational
and entertainment purposes.
Climate tech In the late 19th century, oil, as we know
it, was discovered and it has literally shaped the world since then. It led to the invention
of automobiles, cars, planes, and rockets. It led to the biggest infrastructure project
in the history of the US (highways) that shaped the entire country. In fact, if you go back
100 years ago, oil was the commodity that created America's first billionaire and the
world richest person. Young John Rockefeller realized the importance
of this commodity and quickly started building his empire, where he literally created
a monopoly in
the country. His personal wealth grew in 1913 to $900 million, which was almost 3% of the
US GDP. 3 percent of US GDP today is 630 billion dollars, which means back then, he was wealthier
than Elon Musk, and Jeff Bezos combined. That's why his empire was broken into 34 different
companies. These companies still exist today and are leading the industry. This industry
has also shaped the geopolitics of the world, where it made middle eastern monarchies enormously
rich. Aramco, which is a state-owned Saudi company that controls the oil in the country,
is valued at over 2 trillion dollars, and a few years ago, it was the world's most valuable
company. However, the end of oil is coming. Wendover Production has a great video on this,
which you should definitely check out. ( https://redirect.is/ktq1c2t ) Despite the fact that there is still a lot
of oil left, in 2019, it has reached it's peak. The trend is now downward. Oil is going
to be more and more expensive to extract which means oil prices are going to keep either
rising or oil companies simple wouldn't be able to turn a profit. Which means the demand
for renewable energy is only going to rise. On top of that, climate change is a problem
that dangers the entire future of humanity. These 2 factors are fuelling the climate tech
industry. As oil has dominated the last 150 years, renewable tech is going to shape the
next hundred years. Just in 2021, Climate tech start-ups have
raised a record $32 billion globally so far. This number is only going to increase every
year. So, if you want to make an investment and be sure that it's only going to grow,
invest in this industry.
2. Health care
What happened in 2020 wasn't surprising. If you take a look at the history, pandemics
has been happening throughout history and the most recent one happened in 1918. It was
absolutely devastating. But in the last 100 years, as tech began to grow so rapidly, life
expectancy began to rise as well. We realized that if we take better care of ourselves,
we can easily live 80, 90, or even 100 years. If over 100 years ago, you would be lucky
to live past the 50, now life starts at 50, and 2020 was a warning that if we stop focusing
on our health, everything we have built could be destroyed in a glimpse of an eye. But that's
just one side of the story. The other is that, we can create technologies that can expand
our life span. For a long time, mRNA, for example, was considered as a hoax. But Moderna
came in and created the first mRNA vaccine where you don't need to inject the actual
virus but enough to use it to create similar cells. With this technology, we can create
drugs faster, better and cheaper. Anyone who has invested in Moderna has made
massive gains since then. However, biotech companies are just emerging. You have Vertex,
Roche, Pfizer. Of course, it's risky to make a single bet of any of these companies but
you can try vanguard health care ETF (VHT). It literally holds stocks of the most prominent
biotech companies such as Pfizer, Johnson & Johnson, and the rest.
3. VTI
When people recommend an ETF, they usually talk about the S&P500, but it's not the only
ETF out there. S&p500 companies are great, but they are not the only companies in the
country. As of 2019, there has been 32.5 million businesses in the US, and thousands of them
are listed in the stock market. So you want to benefit from not just the top 500 companies
but the entire economy. Even Tesla just recently joined the s&p500, and there are plenty of
great companies that are not on the s&p500. The VTI ETF aims to replicate the composition
of the US equity market, providing a broadly diversified and low-turnover portfolio for
a cheap fee. It captures the entire investable U.S. equity market. It has a very low fee
which makes it great for long-term investments. It's one of my favorite ETFs.
4. REITs I have been in real estate since I was a teenager.
It's one of the industries that I absolutely love, especially for the fact that it provides
stable cash flow. You have total control over it, and it keeps sending you paycheques. Of
course, it requires some level of management but it's manageable to a certain extend. However,
not everyone enjoys that. A property means constant problems. You have to find tenants.
Something breaks down, you have to fix it, you have to pay taxes, renovate it, and a
million other thing. It's really time-consuming. What makes real estate so social is that real
estate prices keep rising. Even if they crash, they will eventually bounce back. Take the
biggest real estate crash of 2008. Prices haven't just jumped back to where they have
been but have risen significantly since then. So how do you invest in real estate without
actually buying any property? The answer is REITs!
REITs are businesses that own and manage properties, and they are traded in the stock market. So
by investing in a REIT, you are investing in real estate indirectly. But what I like
the most is that there are REIT ETFs like VNQ that invest in multiple REITs.
5. Online Education
With the rise of the internet. Education has become widely accessible, especially with
places like Khan Academy, Skillshare and others. We should have moved to online education long
ago, but we didn't. So 2020 pushed the entire world to move to online education, and it
seems like this industry is going to explode in the next decade or so.
Today you can literally access any information on the internet, learn anything from YouTube
and master any skill from your favorite blogger. There are multiple ways to invest in this
sector. Of course, you have traditional means such as eduction companies that are listed
on the stock market or ETFs that are focused on this industry. You can even get into this
industry on your own if you are good enough at something.
But I prefer startups in this industry because it's growing too fast and it has a huge potential.
I am almost sure that 20 years from now, education is going to look entirely different with all
of these new tools we have, such as VR. But If you want to experience online education
now, then check out my course on Skillshare that will teach you everything you need to
know about the stock market to start investing. It's simple, straightforward and fully animated.
I have literally answered almost all of the questions you have in your mind. I strongly
recommend it if you are serious about investing. It will not just teach you how to invest in
index funds but teach you how to analyze stocks and read financial statements, and at the
end of the course, you will have to complete an assignment that I will personally check,
and the best part of it is that you can get 2 weeks of Skillshare premium if you use the
link in the description and get the course for free. So don't miss it.
You can also start your investing journey by getting 2 free stocks from we bull by using
the link in the description. You have everything you need to start.
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