- Hi guys, it's Mark.
A lot of you really enjoyed the last video I made
where I invested a hundred dollars
in lots of different ways.
And today, it's finally time to share the results
and breakdown how much money I made.
There's also a bit of a twist
because I've invited a guy called Tom Rad
who's never invested in his life.
He doesn't have a job right now
and he'd been finding things really a little bit tough.
While he thinks he'd coming around
for a simple how to invest for beginners tutorial,
I've got a surprise planned for him.
I'm actually gonna give him some money
to jumpstart his investing journey
as I would really have appreciated that at his age.
If you like this idea
and you want me to do it with more people,
then make sure to smash that Like button to let me know.
I'm really excited for this.
Well, I can't wait to see his face.
He'd be arriving any minute now.
(clock ticking)
So we're here with Tom.
How are ya?
- I'm not too bad.
A very difficult time at the minute.
I've been looking for a new career path and a new job.
- I know you've spoken a little bit
about being interested in investing.
- Yeah, I am very interested
but I don't know that much about it actually.
I've been watching a lot of your videos.
My friends have been watching a lot of your videos
and they've actually started investing.
So I'd like to give it a try.
- Well, that's good.
That's good to know
because that's what we're trying to push out.
To get young people invest in early.
So Tom, we've made a video recently
where I invested a hundred dollars
into lots of different investments.
And during this video,
we're gonna see how those investments went.
Do we dive straight in?
- Definitely. - Let's do it.
So this is the first investment.
This is a high interest savings account.
And we invested a hundred dollars.
And at the moment, that's had a return of 0.04%.
And the reason it's lower than when we started
because they lowered the interest rate.
So our profit is $0.4.
- $0.4? That doesn't seem like a lot.
Why would I invest in that?
- So this investment isn't about
the interest you're gonna gain
because nowadays it's really, really hard
to find a really high interest savings account.
The real reason one of these is so valuable
is because you can use it as a backup fund
and you should have in there
around about four to five months
of your living expenses.
- Why would I need that?
- Well, the reason is,
is because if you have an emergency in your life,
I mean, you might have a flat tire on the car
or the engine in the car might blow up.
Whatever the reason, you've got the cash to hand
about to solve that problem immediately
without having to go and borrow the money
which is gonna cost you a high amount of interest.
- So basically it's not about the money you make.
It's about the money you've saved.
- You've got it.
Something a lot of people don't know,
but 78% of Americans live paycheck to paycheck.
So by doing this, you're already ahead of a lot of people.
- Well, that's where I wanna be.
- The second investment we made was into gold.
- Ooh, I love a bag gold.
- Well, we all like a bit of gold
and we invested a hundred dollars into this.
The return on this was -0.98%
which means we lost $0.98.
- So why would I invest in something that loses money?
- Because it protects you against inflation.
- What's inflation?
- Well, think of it this way.
This dollar is actually lost 95% of its value since 1913.
And that's why, your grandma and your grandparents
always say they could buy so much more
with their money when they were younger.
- Well, that makes sense.
But how does that link to gold?
- Well that's actually an easy one
because as your dollar loses value,
gold generally goes up in value.
So by investing your dollar in gold
you're keeping it a lot safer.
- Well, how come you lost money?
- Well, because the gold market always fluctuates.
So gold basically moves in the opposite way to inflation.
As inflation goes up, the price of gold goes up.
- I never really thought about it like that.
Do you just buy blocks of gold?
- Well you can do that but I prefer
to invest into ETFs and ETCs
which means you can buy and sell gold much, much easier.
- So what's an ETF?
- An ETF is an exchange-traded fund
which means they hold the gold for you.
You don't have to physically hold it
and put in a safe or anything like that.
They store it all over the world
and there are billions stored up
and you can actually buy and trade it
on the stock market.
- Well, that's interesting.
I didn't know you could do that.
- So just to finish this section off,
gold is a very, very rare thing.
You can't make any more of it.
Well, you can but it's too expensive to make it
so you wouldn't.
So it won't lose value the same way that money will.
Unless of course, Elon Musk finds a great big meteor
that's full of gold, of course.
And he might do that.
Investment number three was an S&P 500 Index Fund.
And we invested again, a hundred dollars.
Our return was 1.84%
which gave us a profit of $1.84.
- Well, that's a good profit.
But what's an index fund?
- Owning a stock is like owning one cow.
Whereas owning an index fund is like having the whole herd.
So imagine if you own just that one cow
and it dies, you're out of milk.
But if you own a small piece of all the herd
then if one dies, it really doesn't affect you.
For example, what we chose is the S&P 500
which is the 500 top companies in the USA
such as Amazon, Apple, and now even Tesla.
- So I can invest in all these companies in one go?
- Yeah, you certainly can.
And the fees are really low because it's passively managed.
They don't have experts managing all the different stocks.
And pretty low risk because it's diversified
over all these different companies.
- So I'm not gonna lie Mark,
but you're only making a profit of $1.
Why should I care?
- Well, the thing here is
that $1.84 is only over a month and a half.
And if you actually invested a hundred dollars
at 8% growth per year over 45 years,
you would have over half a million dollars in your account.
- That sounds amazing.
- And you know what,
that hundred dollars a month can just be
by having a few less coffees from Starbucks
or doing a side hustle.
It's easily found and invested
into an index fund every month.
Investment number four in a REIT.
And that stands for Real Estate Investment Trust.
And we've invested again, a hundred dollars.
Our value has actually dropped by 0.4%
which is a bit of a pain,
but we did get a dividend,
which is really cool, of $0.57
which means we are actually in profit by $0.11.
- So what's a REIT?
- So imagine you've got rent.
You borrowed lots of money from all your friends
and you've got enough now to go buy a property
and you rent it out.
And of course, because you're a nice guy,
you split all that rent with your friends.
- So that dividend, is that share of the rent?
- Yeah. That's spot on.
And it's from things like offices, hotels,
things like that,
that are owned by commercial companies.
And because they have to signed such long leases
it's a really secure income.
- So this is how I can get
into real estate without buying a property?
- Yes. Think of it a bit like, you know,
I own the front door, you might own a window,
your other mates may own half a dozen brick.
So you all own a little bit of it
and then get paid the rent in return.
- I've always wanted to go into property.
So this could be my way in.
- Investment number five is sort of my bread and butter,
is Business Buying and Selling.
And I actually did some research
and found a model engine that was under priced
which I then sold on eBay.
And also, the guy gave me a model airplane
as well which I sold.
So we made a profit of $67.87.
- Why is the risk level four out of 10?
- Well, this relies on your knowledge
of the things that you're buying and selling.
'Cause if you can find the right things,
you can make money from it.
- I'm really into Star Wars.
- Well, Star Wars toys are worth of quite a lot of money.
And if they're in their packets
you could earn a fortune from them.
- All right, you piqued my interest.
Where would I look for these things?
- Facebook Marketplace is great and also eBay.
And I often look for mistype titles.
In that way you can get yourself a bargain
and sometimes people don't photograph the things very well.
So they're gonna go for a lower price.
- Better I get myself a bargain then.
- And the great thing with this is
you can repeat the process over and over again.
One guy went from a paper clip to an entire house.
Investment number six is Samsung Individual Stock.
And we chose this stock by having a dart board on the wall
and we had 20 randomly selected companies around it.
And we landed on Samsung.
- So this was a completely random investment.
- Yeah. And as you can see from a hundred dollars,
we've actually made a return in 19.4%
which is actually $19.43.
- Wow! So that's where the risk level of 6.5?
- Yep. So the higher the risk, the higher the reward.
- Would you say luck was involved in your dart throw?
- It was lucky I hit the board.
Not only blindfolded, I didn't have my glasses on either.
So it's a absolute wonder.
Of course, luck and timing is always
a critical part of stock investing.
Of course you can do it without throwing a dart at the board
because you can do fundamental analysis.
- What's fundamental analysis?
- That's when you look
at the financial statements and balance sheets
and also the leader of the company.
And this can all be found on Yahoo Finance,
if you're interested.
- So what's the best way to get started?
- Well if you deposit a hundred dollars on Webull,
they'll give you four free stocks at the moment.
I'll leave the link below.
And for you Tom, I'm gonna leave a link for Trading 212.
If you wanna pick up a free stock,
that's fine if you're in the UK or Europe.
- Free stock for nothing? Count me in.
- Investment seven is crypto
and we decided to invest in Bitcoin.
We invested a hundred dollars as before,
and we got a return of plus 98%!
So in a month we've made nearly
a hundred percent of our money back.
- That's amazing.
So are these actual coins?
- No, they're not actual coins,
but they're digital coins.
The great thing with Bitcoin is it's decentralized.
So it's not actually controlled by any government.
And this puts some people at ease
because the banks can't control their money.
- So can I spend this Bitcoin?
- Yes and more and more businesses
are actually accepting Bitcoin now.
And the more that do, the more the value goes up.
And remember this dollar it's just losing its value
because they're just printing more and more.
And that won't happen with Bitcoin
because there's unlimited supply.
- But I heard about Bitcoin.
They're making them all the time.
- Well, actually they're just mining them.
And they're finding all the little bits around that.
And once they were all found
and they're all mined, that's it.
There's no more.
And that'll probably happened in the 22nd century.
- So that's quite a long time to wait.
It should be fine.
- But one of the problems with Bitcoin
of course it's very volatile.
So it's value is going up and down all the time.
On the 17th of December 2017,
one Bitcoin was worth over $20,000.
But days later on the 24th,
it was worth under $14,000.
- So it's a win or lose situation.
- Yeah, I'd say so.
For anyone that wants to get started,
I'll leave a link down below
where you can get $10 of free Bitcoin.
So investment number eight was actually
to be fair, a gamble.
It was lotto scratch cards.
We invested a hundred dollars
and our return was minus 50%,
which meant we lost $50.
- So why would I want to invest in lotto scratch cards?
- You wouldn't. That's the point.
So of course it is the highest risk.
We've given it a 10, but you could win big.
And that's what makes it exciting
and that's why people do it.
- Yeah. I don't think I'll take a risk like that.
- Well you say that.
But 50% of Americans do this every year.
And that's the sad thing.
So the grand total is
(drum roll)
a $108 profit, which is 11% growth
over a month and a half.
What do you think about that?
- I think that's pretty amazing
considering one of them was a lucky dart shot.
- Yeah. It's not bad at all really.
And 10% is considered average for a year's growth.
So I think we did pretty well.
- Me too.
- So I have a challenge for you.
I invested a hundred dollars
in eight different areas, which is $800.
I'm gonna give you $800 right now
to invest in your three top choices
of what we've invested in.
So see if you can beat what we've done.
- Seriously? - You got a $800.
What are you gonna do with it?
- I'm gonna start investing.
- You can split the money however you want
but at the end of the month,
you get to keep the entire amount.
100% of the investments.
- Wow. That's amazing.
I've always wanted to invest.
So this is a great opportunity for me.
Thank you. - That's what we want
everyone to do. We want everyone to be out there
investing and getting ahead in life.
So what are you gonna invest in?
- I'd like to take a quick look
at all the investments we just talked about.
If you were all right
with that? - That's absolutely perfect.
I'd say that's the best thing to do.
So here they all are here.
So while he's picking his investments,
why don't you put your top three down
in the comments below.
I read all of them and I'd love
to see what your choices are.
- Ah, that's a no for me because it's low profit.
- Okay. - Gold. That's a loss.
So that's a no for me. - Okay.
- S&P 500 Index Fund.
Well, it seems like it gets a good percentage
and it's probably the safest option.
I think I would go with that. - Think you'd go with that?
- Definitely. - Okay.
How much you wanna invest in that?
- I think I'll put $200.
- So we're gonna go straight onto Trading 212.
We're gonna go to one of the links in my video
and we can get you a free share as well.
How good is that?
So now we're gonna go on to the S&P 500.
Do you wanna type that in?
- S&P. Ah, it's the first one, yeah.
- So it's a Vanguard S&P 500 ETF.
So we're gonna put into that?
- $200. So now we're gonna buy.
There we go.
- So now you own a share
in the 500 of the Top US Companies, just like that.
- That's amazing.
- So you go off to your mates and tell them
you own Amazon, Facebook, you name it.
You own it. - Wow!
Then we've got investment four, which is the REIT.
Now looking at this is definitely a no for me
because it's low profit. - Okay.
- Business, Buying and Selling.
It's got the biggest profit.
And if it was a different time,
I probably would be doing this one,
or it would be my fourth option.
If I go- - Well to be fair,
I was quite lucky with that.
And I do know the subject very well.
So I did get a particularly high return.
- The individual stock on this-
- You don't have to buy Samsung stock.
You could buy any stock on the entire stock market.
- Oh, well that's good.
So I might even find something
that gives me a higher percentage.
- You may well do.
- Definitely gonna go for that one.
I think I might put, actually $400 in there.
- You might be on track to beat me with that one.
So we've got all these stocks available to you, Tom.
So which ones have you got a feeling towards?
- I definitely liked the look of Tesla and Google.
- We're gonna go on to Tesla.
So we click on Buy.
So how much do you wanna invest in Tesla?
- I'm gonna split it in half.
So I'm gonna put $200 in there.
- Do you wanna do the honors?
- Boom! - You now own part of Tesla.
How about that? - That's amazing.
- And you think Google. - Google? Yes.
- So do you wanna hit the button?
- Yeah. That's another $200 into Google.
- Look at that. You own part of Google.
- Woooh! - It's easy as that.
- Next one is Bitcoin. Crypto.
I like the look of this one.
This one probably has the highest profit
but it also has the highest risk level.
- Yeah but it's exciting. - Indeed very exciting.
So I think I will take my chance in it.
- Okay, Tommy. So whip out your phone
and we can go onto Coinbase
and we can take advantage of that
$10 worth of free Bitcoin.
How's it feels spending all this money on Bitcoin?
- It's great.
And I'm hoping I'm gonna make a bigger profit.
Buy now. - Let's go for it.
- It's bought. - You've done it?
- It's submitted. Done it.
Wooohhhhh!
- High five. - High five.
- I'm gonna leave the next video down there.
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