what do you look for in a stock when
you're investing like where
where's like a good stepping stone where
i could start off for like for teenagers
why did you want to become a millionaire
what do you suggest investing in what
would be your best advice to start
learning how to invest
hi guys it's mark so a little while ago
i posted a video
all about how i would go from zero back
to being a millionaire and you've been
loving it but
one of the big questions i keep getting
asked is how you can start investing in
a stock market
because that was one of the big parts of
the video and you know what i understand
this could be a really confusing subject
because you've got people telling where
you should invest and where you
shouldn't invest
and it's hard to know who's legit and
who's just trying to sell you an online
call
so my main aim for this video is to give
you the information
i wish i had when i was young and cut
through
all the fluff that's online so i've set
up a discord
and you're going to be able to call me
with your questions so i'm going to
condense this right down to a 13 point
plan so hopefully you can turn your
thousand dollars
into ten thousand dollars and we're
going to end with one of the most common
mistakes you must avoid
as always remember i'm a businessman not
a financial advisor so i do recommend
you do your own research as well so
let's dive
straight into your questions but i'm not
really too sure where to start do you
think you should help me have you got
yourself a backup fund sorted
i've tried to save a bit but no not
really oh well that's
obviously going to be your main one
really before you really look at
investing you've got to get yourself a
little bit of a backup fund behind you
because
if you haven't got that then you know i
would always say you've not got any
money
to to lose if you're earning a small
amount of money
just make sure you put a bit of that
away each week
and my advice normally is you know stick
away around about
four to five months worth of salary if
you can
once you've got that behind you then you
can start the investment route
in the stock market what do you what do
you suggest investing in
well to be honest there's about three
main investment strategies and really
it's all about
out of those three what suits you the
best there's technical analysis
which is more of a day trader sort of
way of doing stocks and shares you can
look at a screen like this
and you're watching all the peaks and
trough on a day-to-day basis
then you've got fundamental analysis and
that's when you look into the whole of
the business you know have a good look
at their balance sheets as well because
at the end of the day
you know that company's got to be making
money then you've got your passive
investments and your passive investments
i think are great
because you haven't got to spend too
much personal time on it like where
where's like a good stepping stone where
i could start off for like for teenagers
well i'll be looking to start a simple
three fund portfolio made up of index
funds an index fund
boiled down to the simplest way i can
put it
it's a massive basket and in that basket
you've got
loads and loads and loads and loads of
different companies and by investing in
that basket of companies or
index you have a share in each and every
one of those companies so if one goes
down the other
they've still got the others to rely
exactly that i mean the downside is that
obviously if one business goes sky high
you don't get that sky highness but
the upside of it is if one of them falls
out and goes bankrupt you don't get the
down of that
it all balances out across the board
just to give you some specifics
these are three of the most popular
index funds the vt sac
which is a vanguard total stock market
vt iac which is an international
index fund and vbtlx which is a total
bond market
index fund now generally speaking i
would say you're better off the younger
you are
to mostly go into the usa fund and
some international and less of the bonds
but as you become older and more mature
then you can drop out of the slightly
more risky funds and go more for the
bonds because they are seen as a much
safer
more stable and less volatile way of
investing
inspiration and if you like the youtube
videos what should you do
like in subs why did you want to become
a millionaire
a millionaire is a different thing to
different people some people like to see
you know flashy cars and flashy this and
that i'm not one for flexing that's not
me i just like to have enough money that
you know my family's secure
and i can do the things that i want to
do you know having money makes
opportunities for you and
that's what life's all about so you can
enjoy opportunities and it also buys you
time as well
because realistically that's the hardest
thing to get i want to know
what would be your best advice to start
learning
uh how to invest well i'd recommend you
buy two books there's two really good
books out there the intelligent investor
and the little book of common sense
investing they're both
great books you can read them once twice
three times
i'll leave a link below where you can
pick up a couple of audio books so even
if you haven't got time to read
you certainly got time to listen to them
do you think it would like
uh collapse in the future because like
you see all these stocks going up and up
you know warren buffett always says the
recession's where he makes most of his
money
because when everyone's selling and
getting rid of their shares he's getting
greedy and buying them all
because you'll never get them at a
better price so all those new investors
out there is really important it's all
about time
in the market not timing in the market
there are two types of market going on
out there
a bull market means the market as a
general is
on the rise a bear market is where the
market
is on the decline but the good thing
about a bear market
in the us it's always been followed by a
bull market
i like to invest for a long period of
time and the good thing about that
is you can take advantage of dollar cost
averaging so some months you might be
getting
a great deal another month you might be
getting a bad deal and another month you
might be getting
in between deal but what happens is all
of those
average out so that basically is dollar
cost averaging what do you look for
in a in a stock when you're investing
well the main tactics here are
qualitative and quantitative analysis
qualitative analysis is all about
looking at the leadership and direction
of the company
if it's going really really well and
it's got a good leader let's take for
example tesla with elon musk i mean you
just invest in him anyway wouldn't you
he looks so charismatic
but you can't just do that so 20 of my
research will be on that
and then you go to your quantitative
analysis which is all about looking at
the figures of the company
and hopefully those figures are telling
you a story that
that stock is undervalued now if you
look at it all and think
my life look at that those stocks are
only ten dollars each and i think that
company's worth twenty dollars
then hopefully by doing that analysis it
will give you an
upward trajectory on your shares as soon
as you bought them so that's what i look
for in a stock
what does the passive income means well
passive income when you're buying stocks
basically means you're getting paid
dividends
lots of companies will pay you for
investing in them basically they're
giving you money
every year some companies will pay this
quarterly they may pay every six months
or annually
but you'll get a dividend and that
dividend is absolutely fantastic because
your share can still be going up in
value
but you're also getting a bonus along
the way don't be swayed by
uh massive dividends massive dividends
or dividends as a whole are a bonus
they're a little passive income
and really you should be looking
long-term at how the stock goes up in
value as
uh to be the thing that you're looking
for first i love your videos thanks
thank you very much and if you like the
videos what do you need to do
like hey smash that thumbs up button
yeah anyway how can i help you what's
your question far away
yes i have now one thousand euros saved
up what would i
do with it like in stocks well what age
are you first of all
uh i'm uh i'm a system you can do it by
your parents and obviously as soon as
you become 18 it will go into your name
what you need is a custodial account so
once you've got your custodial account
set up
then you can look at all sorts of
options we always think that
you know index funds are your best way
to go particularly when you're young
i mean there's all sorts of ways you can
do it though you can go through vanguard
robin hood in the usa is very good
trading two one two in the uk is
also very good the nice thing was
starting i mean at fifth i wish
i wish that i had started investing at
15. the one thing you've got which i
haven't got is you've got
time on your side over time eventually
you'll reach what i like to call a
tipping point
and that tipping point is where the
amount you invest per year is equaled by
the amount of
interest you're gaining on your
investment even if you stop
investing at that point that interest is
still going to increase
year on year on year and it's a bit like
a snowball
as that snowball rolls down the hill it
starts very small
but it just adds more and more and the
bigger it gets the bigger it gets so
it's all about working very hard from
where you are now
up to around about 30 years old it
always sounds a long time away
but before you know it that time will be
gone and if you've started investing
early
you know you you're nearer to that
compounding of interest
and you know the world becomes your
oyster after that you know you can give
up a little bit now
to have a lot later so now i want to
share with you the main mistake
new investors make when they get into
the stock market
lots of new people coming into the stock
market are led by emotion which leads to
them selling their shares the minute
they start going down they're so afraid
to lose money
they sell and then of course they see
the stock going back up and they think
gotta buy in there so they're just
losing out on all of those returns they
could have made
you really gotta buy with logic you
gotta be like a robot to be perfectly
honest with you and that's why
passive investing works so well for me
because i don't even have to look at it
it does it all
on its own right i'm going to leave this
next video up here for you but don't
click on it just yet if you want to grow
your wealth remember to
smash that subscribe button ring that
bell and you can click on it now i'll
see you on the other side