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Today we do a very in depth video that is directed at people who are new to the stock market. This video is kind of like a stock market for beginners type video but from a mentality perspective rather than a tactical perspective. I have been investing in stocks for over a decade now and learned so much. I want to share with you some deep stuff. Enjoy!
Well, if you’ve been investing in the stock market for less than 24 months, you have clicked on the right video here today. Usually I do most of my videos just for everybody out there. But today, I wanted to talk to a specific segment of folks that are out there, which might be you watching this video right now you are somebody that has been investing in the stock market for less than 24 months.
And if anybody’s watching this video that’s been investing for more than 24 months, I’m happy to have you here. I hope you learn a little bit from this video, as well, I’m definitely gonna try to bring out some different value on some different points in this video.
Like I said, it’s directed, really of folks that are newer to the stock market, which if you’re newer to the stock market, you’re you know, sometimes you have these thoughts like, am I even in the right place? Should I be actually investing in this? Is this the right time to be investing?
Should I wait till next year? Should I wait till the year after all these different thoughts go through your head? Is this even the best place for my money? Like why should I be going with this strategy versus steady, so many different thoughts?
Because usually, when you first get in the stock market, you’re not sold instantly, okay? It’s not like all of a sudden you’re like, Oh my gosh, the stock market is the best place ever. It takes time to build up to that, okay, it takes time.
I remember when I got in the stock market, it wasn’t even like I knew the stock market was a great place. It was just like, it was like going back to like 2008, like the Yeah, sometime around like 2008, when I first started, like really starting to look into the stock market a little bit, started getting into it more in 2009, especially in 2010.
And when I was looking into the stock market, it was basically out of necessity, it really wasn’t because of like a reason of like, Oh, I’m going to become like a multi billionaire or something like that and become the next Warren Buffett, it was more just out of necessity, because I was looking around and I wasn’t getting crap for my money.
If I had no money in a savings account, which I heard had Howard money, I think I had like $1,000 maybe at that time. And I was looking at real estate. And I was like, it’s so unrealistic for me to buy real estate property with the small amount of money I had and those sorts of things. And I’m looking into gold and silver, I’m looking at these different things.
And at the end of the day, it just came back to I could buy assets of companies. And that seems like the best route for me. So that’s what got me rolling into the stock market. And I got more and more sold on it as I started having some success realized, Oh, I’m actually pretty decent at this started learning more and more.
And then I built up to having a high level of confidence and the germ you see today, you know, 10 plus years later, okay, but it took a long time from that where it started to get to the place I’m at now, you know, I wasn’t sold instantly. It was like, maybe I’ll try this out a little bit.
Okay, you know, I made a mistake here. Oh, I started making some money here. Oh, sorry, make some more money. Hey, maybe I have something here. And then you just take it step by step further. Okay. So I want to talk to you guys about three big things in this video here today.
Okay, first one, we’re going to talk about the DS. Okay, then we’re going to talk about SP versus if then we’re going to talk about GBS, okay, at the end of this video. So we’re going to cover all those three in depth. And I think I’m going to change a lot of mindsets here today, or at least try to put you on the right path.
So if you’re new to the stock market, you kind of know what what you’re going after, why you’re doing this and those sorts of things, which I think is important. So I hope you guys enjoy this, as always hope you get a good amount of value out of this video.
If you don’t mind smash the thumbs up button that helps out the channel in general. And let me know in the comment section, if you’re somebody that’s newer to the stock market, I would love to hear from you down there as always, okay, so in regards to these three things here today, Okay, so first thing I want to talk about is the why Okay, I think this is just vague, like, like a mental thing to get like, like get through your head, like, why are you doing this?
Like, like, why was I listening to an upward conference call last night at like, one in the morning? Like, like, why? Like, why do you Why do you do this, okay, and it comes down to the DS at the end of the day, okay, it really comes down to dreams. This is more of like, a philosophy. Part of the video I want to really take this into like philosophy.
Because dreams, right? Everybody? Almost everybody has some sort of dreams. Okay. Like, like they imagine like in the future, like their life being a certain way. Okay. Maybe it’s, they want a big house, okay. It’s definitely a lot of people, a lot of people like to admit it, they would love to live in a mansion or something like that, right?
A lot of people would love to travel the world, right? I mean, the amount of people that you know, would love to just be able to get on a plane and go to this place, or that place. And we’d love to travel, right? retire early. I mean, a lot of people, let’s be honest, they hate their jobs. I mean, if they had a choice, they would retire tomorrow, if they wanted to, right? I mean, they’re just, they’re just, they’re literally just for the money.
And they’re like, Okay, I got to make this money today. Okay, you know, they would gladly leave their job tomorrow if they if they could, okay. Maybe in regards to retire early. Sometimes it’s just like, so they could spend more time traveling, spend more time with like, family, friends, like kids, you know, whatever the situation is, right?
And, you know, these are kind of some of the big ones now, there’s other things you know, that could be you know, somebody has dreams to have certain kinds of cars.
I remember when I used to have dreams of like, you know, I always imagined like as a kid like, oh man, be awesome and have a Lamborghini Some day and I was like, you know, imagine myself driving a Lamborghini. And just like, what the feeling would be behind that, and those sorts of things.
And so when you get into the dreams, all these different things, at the end of the day, almost all your dreams that you could ever want to fulfill, for most people out there, it all you know, money is in the way, you know it between you and achieving your dreams, whatever it is, you know, traveling the world, having that house, you always want to have that car, you always want to retire early, anything like that.
Usually, at the end of the day, there’s money, it’s coming in between this is becoming in between you and your dreams, money is the pain point, money is a place to live the reality that you want to live, right? If you want to, you don’t have you know, 10 houses and they’re all 10,000 square feet each.
And that’s your dream, respect to you, you can do that you want to have, you know, a different Rolex every day of the week or something like that. Like, if that’s your dream, and that’s what you’ve always imagined. And that’s what you’ve always been excited about. Respect, okay, money is in the way to get there.
If you wanted to retire early, if you wanted to give money to charity, right? Let’s say, you know, that’s one of your goals or something like that, which that’s my big end goal is, you know, giving massive amounts of money to charity, either iPhone, or you know, somebody that just is doing a lot out there, that their their money is being put in the right place, right?
Whatever the situation is, whatever your true dreams are, at the end of the day, you know, money isn’t the way to get there. Okay? And so if you’re looking at this, and you’re like, Okay, what is the purpose of making a lot of money, or a good amount of money? It’s so you can live your dreams. This is a truth at the end of the day.
And you know, sometimes they even think like, why do I like love, like, you know, I’m still looking to stocks I’ve been I’ve been doing this for over a decade now, right? Over a decade. And I still love to listen to conference calls, I still love to read annual reports. I still love to find the next doc. You know, I really think about that.
And I’m like, do I just naturally love this stuff? Or is the fact that I just realized, like, especially for my big end goal when it comes to charity. Like, I love doing it, because I know it’s going to help me fulfill my dreams. So this is why you do this.
This is why you invest in the stock market. This is why you care about building wealth. Because it’s gonna allow you to you know, live your dreams, you know, whatever schools you put your kids in, if that’s the situation or whatever neighborhood like you know, health care, everything is dictated by money.
And so if money’s that middleman to get there, like like, how do you get the money? Well, stock market investing is a phenomenal place to do that stock market investing, investing, okay, investing, okay, let me say one more time. And so when I really look at myself now, I’ve achieved everything I could ever want. materialistically.
I got two houses being built. I got you know, Tesla’s I don’t I don’t own a Lamborghini. I could go buy one right now. Like, after this video, if I really wanted to, I’d have no interest in owning a Lamborghini. But I was literally like thinking about this other day, we took like a week off.
And this was like a week or two ago, right? And we went to Scottsdale fashion square, super nice mall, you know, they got all the fancy stores, and they’re from like, Rolex, and Louis Vuitton and all those stores. And I was walking through the mall. And I really wanted to spend money because, you know, I got plenty of money.
And I was just like, there’s nothing, there’s literally nothing, not one material possession on this planet right now that I want nothing. There’s not a house, there’s not a car, there’s not a, you know, a necklace or a watch or anything. There’s not a piece of clothing, there’s nothing that I want on this Earth right now. materialistically, because I already own it all.
And so when I really got to thinking about that, I’m just like, like, like, now, now that I got the materialistic stuff out of the way. Now I can just focus fully on acquiring more money so I can do what I really want to do, which has always been like, how I got to the idea of like, giving massive amounts of money to charity was actually watched Warren Buffett, many, many years ago, when I was actually trying to learn about his investing philosophies.
And he spoke about, like, you know, how he was going to give like, 99% of his wealth away. And it was like this incredible amount of money, you know, you know, whatever it was, at that time, 60 billion or 7 billion, and how 99% of his money was going to be given away to charity. And I just thought like, that was the biggest flecks of them.
All right. I just thought that was the biggest flex I’ve ever heard in my life. It’s way bigger. I think Bill Gates is doing a very similar thing. And you know, that’s just the biggest flex like, you know, you pull up in a Lambo or Ferrari okay. You know, a lot of people have lambos and Ferraris. Okay, you have a nice house. A lot of people have nice houses.
You got a nice watch on your nice necklace or whatever jewelry, some nice earrings, a lot of people can have that ready, give away 50 billion to charity of your choice. That’s, that’s the ultimate flex I’ve just always felt like that was the ultimate flex and just kind of like a really fulfilling life to live. If you’re really taking it from that angle, because you can never spend that much money. never spend that much money. And so, you know, that’s kind of where where my brain went for.
I wasn’t like I didn’t grow up in like a you know, my You know, my family I grew up in, you know, we were always either, you know, poor or the best we ever were. We’re kind of like middle class, which was fine, right? But the so there was never like a bunch of money to give to charity or something like that. So I really got my, my mindset changed when I heard about the, you know, the Giving Pledge that Buffett was doing.
And Bill Gates, were doing some of those folks, I just thought that is, that’s a flippin cool thing, man. I just like, for me, that was cool. And so for me, this is really what my ultimate dream is, you know, especially because I’ve already got everything I could ever want materialistically at age 30. Now, so I’m fortunate for that. But this, this is why you do it.
This is why you should care about stock market investing, because it’s going to enable you to live your dreams, just flat out, just flat out, it’s going to it’s going to allow you to hopefully get to this place you put in the work, you got the right strategy, you’re going to acquire the money, so you can live your dreams. And that’s what it’s all about them.
And Dave has one life to live and you want to you know, do as much as you can possibly do and enjoy all the things that you always dreamt that you could achieve in this life. Okay, so that’s kind of really, you know, a deep, deep place, you know, took this video right off the bat, oh, because you’re still with me, you know, on the deep part like that, let me know in that comment section, if you know, you feel something like that.
Because I just, you know, been across so many people in life, and almost everybody has dreams of some kind. But unfortunately, most people go through this life without ever achieving their dreams, let’s just be honest, they never get to really have that reality they they want it to have, they never got to you know, travel the world or have that house they always dreamt about having or retire early on in order to achieve any of that, because at the end of the day, money prevented them from achieving them.
And that’s just, it’s just disappointing man. Because it’s one life to live like Why not? You know, uh, you know, reach your dreams and do what make all those things a reality. So that’s my, you know, opinion on that. I hope you know, that one kind of sticks with you guys forever. Okay. Number two. Okay, let’s talk about number two.
So what we’re what we’re talking about here, when I say SP versus if we’re talking about stock picking, okay, stock picking, which is what I do and what I teach. Okay, if you ever noticed all my content and my teaching content, it goes back to what individual stock picking like putting your money in Apple stock over here or, or Google stock or actually picking stocks individually.
Okay. Oh, and even like my videos, I come out with, you know, each month three stocks and buying stuff. It’s all stock picking related, right? And we’re talking about this versus index fund investing, okay, buying into an index fund, something attracts s&p 500 or something like that. Okay. So in the public count, which is available for everybody, my private group, see every single move I make,
I’ll show you guys right here. Okay, that’s like an 83% one year rate of return. You compare that against the s&p 500, the NASDAQ, the Dow anything across the board, and it’s not even remotely close. I’m you know, just crushing. I mean, absolutely destroying the market.
And everything’s, you know, publicly available for everybody see, that number is calculated by Fidelity Investments not calculated by me. So I’m not just making up some number calculated by Fidelity Investments, okay.
And so this is why I do it because index fund, although an index funds fine if you’re lazy, if you’re lazy to put your money in index, but I’m all for that, because you’ll get your, you know, let’s say 8% a year or whatever, on average, put in an index fund that, you know, basically mirrors s&p 500. And over 10 2030 4050 year span, you’re going to do very well for yourself, okay?
But there’s a big difference between, let’s say, getting an 8% return the s&p 500 on average, and getting a 20% return, or a 30% return or something like that, okay, there’s a massive, massive difference. This is why I am all for stock picking, okay.
And that’s why I’m all for last night listening at 1am to a conference call I need to listen to from up work, okay. That’s why I do this. And because I’m looking for the next great deal in this market. Oh, this stock just dipped huge Oh, this is big potential opportunity over here, let me buy into this.
This is why would donate. Okay, because stock picking gives you the ability to create such bigger gains. I mean, literally, if you just played around on a compounding calculator for a few moments, okay. And you just ran yourself at an 8% return, you know, per year, okay, let’s say an 8% ROI, per year over a 10 years span or 20 year span, versus let’s just say a 15% ROI, which 15%, in my opinion, is very doable in the stock market.
You don’t even have to be a great investor to get a 15% ROI, on average, in my personal opinion in the stock market. You have to be, you know, I would call you a good investor, you get 15% You’re good, you get 20% or more, okay? 20% plus, this is put that way, ROI, year in and year out, you know, then you’re talking about you’re really into the great category.
Now run numbers if you’re a good investor versus an index, fund investor and run numbers if you’re a Great Investor versus a you know, an index fund investor, and you’re going to find out the money’s you know, it’s just a total different thing.
And when you’re talking about achieving dreams and things like that, they remember My mind dreams are really huge, okay, my dreams are ridiculous, huge, I want to be able to give crazy amounts of money to charity, right. And so if I’m going to achieve my ultimate dream, okay,
I’m going to need to do some amazing things while I have the time to do it, right. Which means I need to be focused on being a great investor. And that’s why I still to this day, I’m willing to put in the work. And I’m willing to do these sorts of things.
Because it’s when you when you add up the numbers over 20, or 30 year span, especially if you add it up over a 40 year span, and you get in this game young, when you’re like, you know, let’s say in your 20s, or something like that.
The numbers are different man than the other completely different. The dreams, the things you’re able to achieve. It’s just you can’t even compare them, guys. That’s why I believe in doing this, that’s why I believe in stock picking and picking individual stocks, always with a long term mindset in mind, okay, always thinking from long term perspectives, never thinking about just, you know, short, you know, short, you know, quick term money or something like that, because that’s the type of stuff that’s going to take you more than likely the wrong way.
I’ve just seen it with myself, anytime I focused on short term money, I’m trying to make money in a stock real quick, because something’s going on. That’s just, you know, benefiting them today. And tomorrow, it usually ends back but when I’m focused on the long term with the company, it’s, it’s a whole different situation.
So for you guys out there just focus on the long term with these companies and understanding them on a very high level, okay? Because the ROI is different, okay, they’re really, really different. Okay, number three thing I want to I want to talk about here. Okay, so, let’s say, most you guys watching this video right now, you should be investing for less than 24 months, okay?
You’re less than 24 months in your journey, which means, you know, you’re new, okay, I call anybody that’s basically been doing this for less than two years, you know, new, and that’s awesome, you know, you’re getting rolling with this, you’re figuring out everything to look for in stocks, figuring out the socks to stay away from the industry to stay away from the industries to go after, where the opportunities are in the market, you’re figuring out the balance sheets and income statements, and the P e ratios and all these different metrics and things like that, that’s phenomenal.
Okay, then you have your group, which I call, you know, kind of a three year to 10 year investors, okay? This is this is usually the stage that I call, you know, kind of a massive improvement stage, okay. And where, you know, you really start to invest at a better and better level, you know, as long as you stay on the right track, but you could go up the wrong track, especially if you have some success, you let it go to your head, you start thinking all sudden, you can do swing trading day trading.
And just because you had success, taking some great long term investments that’s happened to me before, around like, 2014 2015, right, I had so much success in the market, that also when I started thinking, I could predict earnings and just I started taking it too far.
I ended up going backwards, and how to climb my way back up. Okay, starting in 2016. You know, make sure you avoid things like that, but you should have massive improvements, that, you know, right here. Some of the terminology, you still don’t even know you’re still learning the terminology, right. But your 345 you know, the terminology, you know, what stocks to start going after?
Okay. And then from year 10, to year 30. I call these your prime years, okay. In my opinion in stock market investing, now past 30, okay, past 30, I think you start to kind of not say you’re a bad investor, but I think you age out a little bit, okay, you start aging out a little bit.
Sometimes the techniques can change over that, that course amount of time, sometimes new industries can come upon that you just really don’t understand, because you’ve been doing it so long into certain industries, and all sudden, you’re in year, you know, 43 of your stock market investing journey.
And you’re just like, man, I don’t understand any of these new companies and what they’re doing and why this valuation makes sense. And we’ve we’ve seen it from some of the older investors, not every older investor this happens to but we’ve seen it from some right even even mine, you know, legendary investor that I love, you know, more than any Warren Buffett, right?
Even Warren Buffett has kind of aged out on a lot of different things out there really understanding technology stocks on a high level, and understanding, you know, that sometimes the market is pricing in three or five years of growth with these companies.
But it can make sense because of growing so rapidly. And so sometimes just naturally you age out, but you have this this 20 year span, basically, which I call your prime years.
And this just allows you you know, you’re just you’re just like, you know, if you’ve really been focused on this, you should be like just like a Michael Jordan. Okay, you just be ready to rock and roll for 20 years of just some phenomenal, phenomenal gains, maybe not every years, a phenomenal year, but you should have some amazing, amazing years in there and be able to do very, very well for yourself most years, okay, is your prime years, because at this stage, you know, I’m in year about like 12 of stock market investing, right?
And, I mean, I look at the stocks I’m investing in now when I think about the ROI as I get on those stocks and where I’m going to like to get you know, with some of these stocks in the future.
And I look back at the stocks I was in, you know, five years ago or especially 10 years ago, and like man, those stocks I was in 10 years ago or seven years ago, I wouldn’t even consider those nowadays because they’re just not even close to the level of Types of stocks.
I mean, nowadays, all types of ROI I’m getting nowadays in these type of stocks, it’s just it’s whole different levels. Okay. And although that was a great time to invest 10 years ago, market had been really, really beaten down from the Great Recession, I look at a lot of those stocks, I’m just like, dude, I wouldn’t even consider that, you get better, and you get better as time goes on. gdb stands for getting better, okay.
And this is what should happen over time, you should get better and better and better. And everything you learn is cumulative, okay. And by being in the market experienced these things, you’re going to go through some either bad situations or some great situations in the stock market.
And through those situations, you’re going to learn, oh, man, I need to go after this, I need to go after that, I need to stay away from this, I need to stay away from that. And that allows you to just kind of level up, level up, level up, level up and hold different different ways than you ever thought possible. Okay. And so, you know, you’re gonna get better, you’re gonna get better.
And so if you’re in your first, let’s say, year of investing or something like that, and you make a mistake, and you buy a bad stock or something like that, don’t think that’s the end of the world. Okay? You know, think about it anyway.
Right? If you’ve never played basketball in your life, right? I hope that you guys all know basketball watching this, you know, you shoot a basketball into a basketball hoop, right? Imagine you’ve never played basketball before, and you go to shoot your first shot, dude, you’re probably not going in, I’m gonna be honest, you’re probably gonna shoot an arrow ball, or it’s gonna be some horrible shot. If you never shot a basketball before, more than likely it’s not going in. Now, does that mean you can’t be a good shooter?
Absolutely not, you just got to practice Oh, I need to put a little more power into a little less power, I need to aim it a little better. Okay, bah, bah, bah. And all sudden, you get better and better. It’s the same exact thing with the stock market guys. It’s the same exact thing. Don’t expect all your first shots to go right in. Because, you know, sometimes it doesn’t happen.
At the same time. Get in good habits very early. Okay, there was a great saying I heard from Warren Buffett A long time ago. And I love this saying I still like I remember it to this day. Essentially, what Warren Buffett was saying was great habits. If you’re getting into good habits, essentially, those are very hard to break once you get into great habits.
However, if you get into bad habits, that’s also very hard to break. So if you start off, you’re really a lazy investor, you’re not you know, doing the research work. You’re not reading the 10 ks 10 Q’s, listen to conference calls, looking at investor presentations, doing all the work necessary to pick that next great stock.
Those good noodle those bad habits are really hard to break. However, if you get into great habits early on, which I was fortunate if I got into them, bring the annual reports, listen, conference calls and keeping up with the quarterly reports, all those sorts of things.
I got into those, I still remember like reading those reports on the bus while we’d go to like track meats and stuff. And people, you know, some of my teammates and stuff, they’d be like, what are you doing? Like, you’re reading the annual report on Vulcan materials?
Like, what’s the matter for you, man? Like, like, what are you doing? I’m like, I got time as a two hour bus ride. Why not read the annual report right now? Like what? Like, what are you doing, man? And, you know, at the end of the day, I was getting into some great habits at a very young age in my first year to investing.
And, you know, obviously, other people chose to make other decisions in our life, and that’s fine. But if you don’t get into those great habits early on, and you get into bad habits, those are going to carry around, and those are going to carry around, and it’s going to be hard to break out those great habits. And you’ll end up doing a thing where essentially, you’re gambling money in the stock market, rather than investing money, okay?
If you don’t do the real research work, you’re gambling your money around, you’re not you’re not investing your money, your investment, business investment if you’re a businessman or a businesswoman, right?
business investment means you fully research whatever this is you’re going to put your money into, you understand on a high level, you understand why you’re more than likely going to make money in this, you’re going to understand even the risk factors, what are the chances you lose money in this, you’re going to understand everything and you’re going to say I’m going to buy into this business.
And it’s the same exact thing, when you invest money in the stock market, you have got to be on the ball, you’ve got to understand the company, you if you don’t understand the company don’t invest in.
Okay, you don’t understand why that company is more likely gonna make you money over the next 510 years. don’t invest it, okay? If you don’t understand, you know, what the risk is going in, don’t invest in it, you don’t know what to look for it, like don’t invest in those sorts of things, okay?
Otherwise you’re making gambling decisions and in a true investment is you understand all those sorts of things. Okay. So, you know, I’m going to leave the video here. I hope this helps you out immensely for any newbies in the market.
If you’re somebody that has $10,000 or more in the stock market right now, or you’re at a place where essentially you want to invest $10,000 more in the next 12 months, check out the first link in the description that will actually allow you to apply and hopefully get on a call with somebody high up from my team.
And we could talk to you about a potential product that can help you scale your portfolio out. And other than that, you know, check out you know the other resources that are linked in the description as well as my other videos on the YouTube channel.
I hope you guys got a lot of value out of this video here today. If you don’t mind, smash the thumbs up button that helps out the channel in general. And 12 newbies Welcome to the stock market and I hope you have a next several. A great several next decades This was put that way.
Thank you for watching and have a great day.