When to BUY a Stock Exactly in 2021
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Well guys today I thought about making a video that will get as little views as possible, so I decided to do a follow up to a video i posted a few days ago on when to sell a stock exactly.
So today I will talk to you about when to buy a stock exactly. I will explain to you when to buy and why its so important to buy at the right time. The stock market is tricky and it’s hard to judge when to buy a stock.
So I hope you enjoy this video where I go in-depth on when to buy a stock exactly. I hope you enjoy this value packed video! Smash that like button! And also leave me a comment with your opinion on this video! Also let me know if there is a stock to buy now or a stock to watch now.
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Well guys, last week I put out a video on this channel called when to sell a stock exactly in 2021. And it was my worst performing video in terms of views and let’s go ahead and do a follow up to that video because that sounds like a brilliant idea why not get the least views possible we can on YouTube, okay, but no, in all seriousness, although that video did very bad, US wise, it helped a ton of you guys out okay, and you got a ton of value out of it.
I saw it in the comment section what and all sorts of things so every once in a while I have to do these type of videos that you know, they just give out a ton of value, they might not be the brightest thing and the best thing for views but these videos do end up helping you guys out immensely. Okay, and so we’re doing one of those type of videos here today.
It’s actually going to be a whiteboard video. I just kind of put a few slides to get started here. But we’re actually going to get onto the whiteboard today.
We’re gonna talk about when exactly to buy a stock. Okay, one of life’s great question, when is the right time to buy a stock because you know, you can buy stocks in many different time points, right. And there are certain times to buy stocks that are better than others out there. Okay.
And the difference between buying a stock at the right time in the wrong time couldn’t be a difference of like making a model three worth of money on a stock or making a Nissan Versa worth of money on a stock Hey, by the way, shout out Nissan Versa squat, I used to drive a Nissan Versa back in the day, it can be the difference between having a pool in your backyard because you made enough money off of stock to afford that or have a porta potti. And okay, maybe, maybe not a porta potti okay to help you the ideal thing.
But if I look at like, if I pull up the public count here, let’s pull up the public account. Let’s look at this for a minute. Okay, some of these stocks I got in it literally the perfect time like right before they started going up huge.
And there’s I should have gotten a little before and there’s I should have bought heavier, faster, and I didn’t add aggressively enough and things like that. So even you know somebody like myself that’s been in the stock market for 12 plus years now, I’m always looking at ways to improve in ways I can get even better when it comes to buying a stock building out a position and doing all those right things, you’ll never be perfect at it.
You’ll never get stocks exactly at the bottom or something like that. But the name of the game is always improving and something I try to do all the time. So hope you guys get an immense
amount of value out of today’s video. Hope you guys really enjoyed. If you don’t mind smash that thumbs up button that helps you to channel out in a mass way, especially in a video like this, that’s not going to get a ton of views.
Like we need you know as much smashing a thumbs up to help us in the algorithm with a video like this guys, because I’m giving you out a lot of free value here today, okay, but you want to join stock hub that is also completely free to use that that is our discord chat for talking stocks, with a ton of other investors all around the world. It is the best free stock chat out there. It’s actually the biggest as well. So the biggest and the best.
And then if you want to try to apply for my private stock group, and you want to attempt to get in there might have that as one of the pinned comments down there. By the way, we just had somebody reach eight figures today.
Massive Okay, they sent me screenshots and everything. I don’t even have an eight figure club yet. I think they’re the first person in the group to reach eight figures meaning they have like 10 million plus just in stocks. Absolutely. What a beast. Okay,so already guys, let’s go ahead and talk about this big subject here a day when to buy a stock.
Exactly. Okay, now, we’re actually want to start with this video. And then we’ll kind of get into some of the talking points that I hear talked about a lot on when to buy a stock and we’ll talk a little bit about that and my perspective on that, then we’ll get into the seven steps, okay. But before we get into that, okay, remember, when you buy a stock, you are essentially buying ownership in a company, okay? It’s not just numbers. It’s not just a ticker symbol.
It’s not just like some arbitrary thing out there in this world, okay? You were literally buying ownership into a corporation. Okay? So if you go buy a share of Nike stock, okay, you were literally part owner of Knight k might be a very, very, very small part owner of Nike, but you are nonetheless, part owner of Nike, if you go buy a Tesla stock, you are now part owner of Tesla Corporation, a very small owner, right? But you are part owner of the company.
This is what stocks are okay. And so everything when it comes to whether you should buy a stock, whether you should sell a stock should always come from this core perspective, be over everything else, that you’re buying an actual Corporation here, at the end of the day, you are making a business decision to put your money that you have worked for into this stock over here, or to sell out of this stock over here.
Okay? This is so key in the whole process, because if you don’t, if you can’t wrap your head around this, you can’t even worry about all of this, okay? And I’ve seen a lot of people. I’ve seen a lot of people who have tried the stock market and fail because they don’t understand this one core thing before all the errors in the valuations, the financials, everything else. Like if you don’t get this Good luck getting everything else. Okay, this is a most important thing, literally in the stock market to really start making money.
Okay? Now, let’s talk about some of these things. Okay? Because these are things I’ll hear, you know, people say, Oh, you just buy a stock When this happens, okay? People say when the stock is going up, buy the stock. Well, it’s up trending, so it keeps going up. So get on board, because a rocket ships just taken off.
So I’m just gonna keep going up, right? When stocks going down. Oh, man, it’s going down. So it’s due to come back. It’s going down right now it’s gone down 20% last month, so it’s due to come back. Okay. When the stock breaks trend, oh, the stock just broke trend. So now’s the time to buy. Okay. When the technicals say it’s a buy, okay.
And many different people have made different opinions on technicals and when that says to buy and things like that, okay, all for these, or looking at stocks from a perspective that I do not agree with at all.
These are all looking at it from a perspective of it’s a ticker symbol, it’s just numbers bouncing around, rather than looking at it from a business decision standpoint. Okay, this ain’t no, none of this is how real business people look at stuff, okay?
They don’t say, Oh, well, the valuation of the company is going down. So we got to buy it now. Or it’s going up. So we got to buy it now. Or it’s shifted this way it was up and then it’s down. And now it’s time to buy like, No, okay, this is not how bosses make decisions. Okay. This is not how Jeff Bezos and Elon Musk make their business decisions. They don’t walk around saying, hey, valuations now. No, okay. That’s not how Warren Buffett does it.
It’s not how anybody that has made any huge money in this world makes their decisions, okay? None of them, okay? Like, look at the billionaire list. None of them make their decisions based upon any of this, okay? That’s not how you make real money, okay? You want to play around money, cool, go play around money, you want to make real money, you don’t worry about this crap, because it’s all just a bunch of crap.
And it has nothing to do with the core thing of you actually buying ownership in a company and you making a business decision. Okay. All that’s just a little. Okay. When Jerry buys, well, of course, you can make a ton of money every time you just buy when I buy, you’re gonna make a ton of money. No, I’m just kidding. I’m just kidding.
Okay. But in all seriousness, okay. You know, when Jeremy buys when Warren Buffett buys, and Cathy wood buys whoever you look up to in the stock market, you know,that’s not the right perspective, either. Okay.
And although you can make money, like if somebody is a super successful investor, and they consistently pick winners and winners, and you’re like, dang, that stocks up, that’s not you know what I mean? Like, if you see that it can be very alluring and attractive to just copy whatever they’re doing, and be like, Oh, this person, they just continue to pick winners, the last 10 stocks have all gone up, blah, blah, blah.
It’s very alluring. But I’m just telling you, that’s once again, not the right perspective, you should come at the stock market, you should be making your own decisions. Okay. I have as much respect for Warren Buffett, as anybody in a matter of fact, I’ve ripped off like 92% of my investing philosophy is ripped off from literally Warren Buffett, okay, I study that guy, like, like nobody I’ve probably ever studied, okay.
And I don’t buy stock just because Warren Buffett’s buying a stock actually, the majority of investments he has are not the majority investments I have, in the majority of stocks, I hold my portfolio, Warren Buffett does not hold, although I have more respect for him than everybody else in the stock market combined, combined.
And I still don’t just go out there and buy a stock because Warren Buffett’s buying the stock K, we hold very few of the same investments. I do hold Berkshire Hathaway stock, which does very well for me, and as Warren Buffett’s company, but outside of that, that might be one of the very few stocks that we both are actually owners of, like, like literally.
Okay, and so this whole perspective, it’s like, it’s just the rock like Warren Buffett, he’s 90, like, I don’t know, when how much longer he’s gonna work. I don’t know how much he’s gonna be on this earth. Okay? Someday, Warren Buffett’s not gonna be here. Okay.
And so if I’ve just been picking stocks for the last 12 years, based upon what Warren Buffett’s doing, rather than what I’m doing when I would have got lower returns, but to and most importantly, I wouldn’t have learned for myself if I’m just copying him year after year after year after year. Okay.
Same thing like a Cathy wood, you know, she’s got a lot of really good stocks, but at the same time, like if you just pick the all the same stocks has heard, some of them are gonna do really well. Some of them aren’t gonna do that well. But at the end of the day, it’s like, are you really learning if you’re after year after year, you’re just picking the same stocks is one thing to hear somebody talk about sock and then be like, Okay, let me let me look into this and see if this is the right stock for me and then making that decision.
So it’s another just to say, they’re buying the stock, I’m buying the stock, they saw that stock, I’m selling out of stock, okay? Like you want to, if you want to really make money, you got to learn this stuff for yourself. You can’t just always copy copy, copy, like, what if one day I just like I don’t want to do YouTube anymore, and I just bounce because like, I have more important stuff to do. Like, what happens if that happens? It’s probably gonna happen someday. So when it happens, like if you don’t know what you’re doing? Yeah, no, it’s not the right situation. Okay.
So this No, okay, no, okay. Before earnings after earnings, okay. This is another thing I hear people talk about. Like, oh, you You want to buy right before earnings? Because a lot of times these stocks will go up? Well, they could also go down, oh, buy it after earnings because you don’t want to get into a stock right before earnings because what if it goes down a bunch could have got cheaper.
Once again, this is not looking at a perspective, from a fundamental perspective, a valuation perspective, you’re looking at it as like a gambling decision, like well, it might go up so I need to get in now or might go down. So I need to get I need to wait to get until after like, no,that’s like,
that’s just a wrongful Lhasa fee, okay, though, before earnings after earnings before ex dividend date. Okay, there’s another one, you know, people think they’re gonna try to time out dividend dates or something like that.
Okay. Keep in mind, usually, after ex dividend date, the stock price goes down by the same amount that they pay out the dividend. Okay? So which means essentially, like you didn’t make good, like, if you think you could get that 1% dividend yield, the stock probably went down 1% that same day, if not more than 1% Okay, because it has to balance out.
So that’s not really you know, if that was a philosophy that work, believe me, that would be like, easiest way of making money. It doesn’t always work. And actually, a lot of times it doesn’t work. Okay. That’s nothing in the market during a downtrend in a market uptrend. Okay, so some people say, well, the markets crash and just buy in a market uptrend.Okay,you shouldn’t be taking the stock market in general, in terms of your decisions, I feel like bring down the stock market 99% stocks are at fair value overvalued. Okay, I feel like that right now.
Doesn’t say it doesn’t mean I’m gonna stop buying stocks because guess what that means 1% of stocks are undervalued in our deals. And so regardless, if we’re in a stock market that’s skyrocketing, or stock market that’s crashing, I’m always looking for where my opportunities with individual stocks out there and buying those individual stocks, all the BS about all the markets going down and markets going up. I don’t care.
I don’t care. It’s fun to talk about. We can have discussions about it. It’s entertaining. But at the end of the day, that makes that means literally zero to me buying Google stock or not buying Google stock, I don’t care. All I care about is where that stocks at where I believe that company is going over the next five years.
That’s what matters, what valuation it’s at. That’s what matters. The market in general, entertain me, man. That’s all that’s about. You know, I find like if I ever watched like CNBC, like the Fast Money show or something like that, and I want to zone out for an hour, I put that on and I’m like, entertain me, guys.
Let’s talk about the stock market for the day. It was just throwing random opinions out there. It’s entertainment. It’s fun.
But at the end of the day, I don’t make investment decisions based upon whether stock markets in an uptrend downtrend sideways trend, who cares? I’m in stocks, because regardless what happens in the market, they’re going to do well, that’s my name in the game. I’m buying into this corporation over here, because they’re going to do well, they’re going to do well don’t matter what happens. That’s the type of companies I want to be in.
I don’t want to be in a company that’s just going to do well because the stock market’s doing well. That’s not that’s not a good situation at all. Okay. Some people say when it’s a hot stock, when everybody’s like, talking about one’s a popular stock or something like that, okay.
Once again,these aren’t investment decisions.
These are gambling decisions, okay? And there’s a big difference between gambling This doesn’t mean you can’t make money. Okay? You guys know, I live in Vegas. I live in Las Vegas. It’s a city built on gambling.And you you can get lucky
on the strip sometimes and make a bunch of money, right? Doesn’t mean it works over the long term.
You want to make gambling decisions, make gambling decisions, just understand they’re gambling decisions. They’re not business decisions. And there’s a difference between a business decision and a gambling decision. Okay. When a company goes IPO IPOs have been hot the past year, you know, really past like six months, specifically, a lot.
IPO has been you know, boom, boom, boom, Hey, man, I can tell you that can go south really fast. Okay. IPO markets hot one minute, it’s like every single IPO is Boom, boom, boom, next minutes, really bad. And keep in mind when it comes to IPOs,which is Company A doesn’t really know what I’m talking about. It’s a company that’s just going public. Okay? They’re just hitting the public market.
So you and I, and everybody else can buy shares in that company. Okay. Keep in mind, when these companies go IPO, a lot of times they’re overvalued. And a lot of times when you hear about stock is up so much, oh, that stock went up 50%, its IPO day, a lot of times, you weren’t even able to get in on that deal that was only like the inside inside of Wall Street was able to get in that deal. And that stock might have actually been up 60 or 70% when it actually got out there so you and I could buy.
And they don’t even talk about the fact that a lot of the normal investors, the regular people out there, they’re investing through fidelity or Robin Hood or whatever other apps out there. TD Ameritrade, those folks, a lot of times might have ended up actually losing money and so you hear all that it was up 50% and it’s like a lot of them normal investors probably actually lost money in that day. While you know, the inside people made a bunch of money. Okay, so you know, this whole thing. Ah, okay, no, no, no.Okay.
Let’s talk about these seven steps here. Okay. So you when, when you’re talking about when to buy a stock,when’s the right time to buy a stock? Exactly. Okay, before you can get into revenue, and valuations, and like philosophies and mindsets and anything like that, but the most important thing, first off is are you in a position of power,are you in a position of power means if you’re going to buy that stock, do you have some extra money around for emergency expenses, and you have some extra money around to buy more of that stock, okay.
And if you, if you don’t, then you’re not in a position of power, you’re in a position of weakness when you buy that stock. Because imagine you only have $500, okay? And you say, I’m going to put this $500 in the stock over here. And then also you get a flat tire knows and you got to sell that stock, you put yourself in a huge position of weakness, because you’ve had no money around.
Don’t ever put yourself in a position of weakness, guys, that’s like the worst like situation for you. Okay, you got to always keep yourself in a position of power. You don’t want to have to sell the stock at a really bad price. Okay, always be in a position of power. Step number two, okay.If you’re looking at that company, you’ve done your full research on that meaning you’ve read the 10 k 10. q, listen on conference calls, you put in the actual research work, okay.
And you’ve studied the industry and things like that. You want to look at that company for the next five years? And imagine out where that company going to be in five years from now? And are you 99% sure that the top line, meaning revenue, is going to go up and go up probably substantially over the next five years? Okay.
If you’re not 99% sure of that being the only 1% is because you haven’t seen it yet. But you’re like, wouldn’t, you know, you’re just like, so they’re like, you can’t even imagine that company not growing for the next five years. You’re not in there.
It’s not the time to buy stock if you don’t feel like that. Okay, if you’re 5050, like, yeah, then revenue might increase the next few years. But I don’t really know if you’re 5050.No, is not the stock for you. Okay, you got to be 99%. Sure, before you buy that stock.
Okay, this is so dang key, you no one wants to be in a stock that has revenue shrinking and is expected to continue to have revenues shrinking, okay, that scares away like everybody out of a stock, okay? Because that means that companies getting closer and closer to bankruptcy each day, as their revenue continues to go down and down and down. No one is going to want to buy those ships if you if you ever want to sell them down the road.
Remember the name of the game is to buy assets, stocks, have those assets increase in value over time, because people are willing to pay more for them. And no one wants to buy some stock that the revenues continue to go down and down each year and are expected to continue to go down. You got to be 99% sure that those revenues are going to continue to climb.
Like I said, you only get there. You only get there from having a high level of understanding around that company. You can’t just say well, you know, Amazon, yeah, the revenue. Have you done a study into Amazon? Why do you feel that way? and things like that. And some companies are easier than others.
By the way, Amazon’s really a piece of cake company as far as like their revenues are going to obviously increase massively the next five years, right? Some companies are really, really simple. And other companies, you really need to do some digging, man, you really got to do a lot of research work or work there. Okay.
Step number three is a little more around valuations. Okay, let’s talk about valuations for a minute. Super, super important. Okay. So I’m looking for forward Pease under 25, under 25, if the company’s a single digit top line grower,okay, so,top line, a single digit top line grower means a company that might be growing 3% 5% 7% per year, expect them to grow in future years. Okay.
And so I’m looking for under 25. If that’s a scenario, remember, if it’s a scenario where I think the company is not going to grow revenues, it’s not even worth me being in that company. It’s not worth there’s too many companies that will grow revenues each and every year for the next five years for me to be messing around some company that will have revenues shrink next year, the next year after that, like No, okay, so it’s got to be at least a grower but if it’s single digit I’m looking for for Pm 225, which means essentially, you’re looking at the earnings for the next year. Okay.
And if it’s a growing company, you know, that’s growing decent decent, I want it under 25. If it’s if it’s only a single digit top line grower and it’s over 25, I don’t want to part of it. Other people can buy that stock respect to them, okay.
I don’t want part of it. If it’s trading at a 45, four P, and they’re only growing revenues, I expect them to grow revenues 4% per year for the next number of years.I don’t want part of it. Like other people can buy it.
It’s not the stock for me at the end the day I don’t feel like that’s a good deal at all, if that’s the scenario, okay? If it’s at a 19 and I expect them to grow 5% per year each year for you know, a number of years ago in the future. Now we’re talking now we’re talking now this is really interesting.
Aside of that, no, okay, no, all right. And usually if you’re buying a great corporations that have great management teams, bottom line will take care of itself. Okay. Something keep in mind that okay, Ford p under 40 is if the company’s a double digit top line grower. So let’s say I’m buying into a company that I believe is going to grow revenues on average.
You know, 15% per year for the next five years, okay, meaning they grow 15% 15% or something around there roughly, okay, I’ll pay a 35 a 30, a 33, four p for that, that’s perfectly fine as long as it’s under 40. And then if I can get companies that are, you know, even significantly under this, I’m looking really good.
So for instance, I’ll give you a specific example of a stock that would fit this category, Dropbox, okay, ticker symbol, db x, okay, db x. So this is a stock, I was buying mostly around $20, a share, let’s say roughly, okay. And it’s forward, p was around 1920, something like that, let’s say like 19.5, for a lot of the shares I was buying. And this is a company that I expect to grow double digits for likely several years ago in the future.
And so I’m looking at this stock, and I’m like, even if it was a single digit grower, this stocks a deal, in my opinion, but the fact that this is a double digit growing company top line, it makes a stock really, really attractive. And so that’s why I loaded the boat on Dropbox, the last few months, when it was anything even remotely close to $20. And even at 25, I couldn’t be loading the boat on that stock just because I’m looking at him like, it’s up here.
But yet the company is at double digit bottom line, or excuse me, double digit top line grower that is extremely attractive. Okay. Very, very important from a valuation standpoint. Because remember, it’s not just about, you know, buying into the right company that you think is going to grow in the future, it’s about getting a valuation that you think makes sense for a stock. If you’re not buying into a valuation, that makes sense.
You’re only playing half the game essentially, at the end of the day. Okay. So, fundamentals over everything after fundamentals, we can talk valuations, okay, now, step four, when to buy a stock exactly, is before big dog sees it. Okay, big dog, I’m talking about Wall Street, I’m talking about fund managers. Now, you might think you have a disadvantage against fund managers, I can tell you, you are 100%, incorrect, you have a massive advantage over fund managers, okay.
fund managers, let me talk to you about fund managers for a minute, okay, in Wall Street. All right. Wall Street, it’s a lot more lucrative for big fund manager, or these these guys on Wall Street to go out and play around a golf for three or four hours with a big high net worth individual, rather than looking into some stock for the next three or four hours. Because at the end of the day, if the if the fund manager gets, you know, a 10% return or 12% return or 8% return, a lot of times, that doesn’t really matter.
They just want to keep their relationships with people that have a lot of money. That’s, that’s the name of the game. And so a lot of times somebody that has $700 million, super high net worth, maybe they sold the business and just have a ton of money. And now they’re 65, whatever, right? The fund is looking at that as we get to keep that relationship so they don’t jump to the other fund over there and invest their money with those guys over there.
Because those guys over there it a lot of times the returns don’t matter. It’s about the relationship. Okay. And also, when it comes to these funds, a lot of times they don’t even see what’s coming.
They’re they’re in their own little bubble world in Manhattan. And they’re like in this little bubble world of Manhattan, and they only see what’s in front of their face, and they don’t even know what’s going on in other parts of the country. Okay, like I remember, a perfect example of a stock that I got in back in the day that they didn’t even see common was Cabela’s.
Okay, like, you know, Wall Street in Manhattan they don’t even know about Cabela’s okay that’s like a hunting and fishing store like like but these stores I saw them do it huge volumes and Wall Street never saw this and the stock was like $20 under $20 I’m like this stocks I deal in half and buying buying buying next thing you know, you know things go really well for the company. It’s a 60 plus dollar stock Wall Street was all piling in it because I like oh my gosh, look at this company is growing like crazy. Now.
What is this? Cabela’s they were so late to the game? Okay, tassels, another perfect example, you know, Tesla’s a stock that wall street was way late to the game to you know, they didn’t finally start coming around to Tesla really Intel the stock had already gone up a ton you know, we’re versus I was in the stock couple years ago.
So I was looking at Tesla and I’m like, Oh my gosh, I’m seeing this more and more everywhere I drive out here you know, if I drive to California see him when I’m in Vegas, I see Tesla’s everywhere especially in like the neighborhoods I live in like Tesla’s are dime a dozen. I’m seeing a more and more in Arizona and so like, I’m seeing all this and I’m like, and I’m looking into the company I’m looking into the like, you know, what the company is doing and technology they have how big of an advantage they have. And I’m like, this is massive and Wall Street just wasn’t seeing it.
They were just they’re completely blind. They’re completely blind because they live in their own little bubble world myth hen. And so you you you think like you have a disadvantage I’m just telling you it’s 100% incorrect. Maybe for like if you’re trying to day trade and get in and out of stocks or something like that like in the next 10 seconds.
Completely agree you probably do they probably have some machine that does it way better and can get on that Penny better than you can get on that penny. Okay, perfectly fair for making doing what I do business making investment decisions. huge advantage. To me over those guys, okay, I think differently than them. I’m a different age group than them.
I can I can see trends that are coming so much faster and they can see trends. And by the time they jump on it, man, it’s already it’s already, you know, boom, it’s already, you know, way up there I just put it that way. Okay. So yeah, I love to spot these companies way before Wall Street.
A newest one I’ve gotten in recently is TTC F. Okay, TTC, f tattooed chef Corporation. You know, that’s a company I’ve been looking into and buying the stock very aggressively lately, because I’m looking at that stock. And I’m like, you know, I think it’s been, you know, the stocks been anywheres from 15 $20.
I think it’s above $20. Now, but I’m looking at that stock. And I’m like, this is a perfect company. They’re capitalizing on this huge growing movement in the food industry, in the changes that are happening there. And I don’t even know if Wall Street sees this yet.
They will see it in a couple years. I can promise you that. But they don’t see it today. And so yeah, you as a little guy. Believe me, guys, you have a massive advantage. Don’t ever believe the BS that you think those guys have an advantage over you because they don’t.
Okay. And remember, when it comes to most analysts on Wall Street, most these analysts on Wall Street? They don’t even pick stocks for themselves. Okay. And if they do, a lot of them aren’t good at it. Okay. So keep that in mind as well. Okay, a lot of different things.
The analysts aren’t even really looking at things from a perspective of picking the right stock or not the right stock, they’re looking at things from a perspective of, can they get the revenue growth rate, right, because they heard this from management team and running these sophisticated models and things like that.
A lot of that doesn’t really have to do with you being a successful stock picker. I’ll be honest, okay. So that’s step four, no four, Step five, on when to buy a stock Exactly. Okay. Here’s a big thing. This is a little bit of mentality type stuff, when you can explain your bullish thesis to somebody that’s not even invest in the stock market.
And they don’t have to believe the bullish thesis. But just when you feel comfortable enough, you understand the company well enough, it’s likely a sign that it’s time for you to buy that stock. Okay?This is huge. Okay. People wonder why still make YouTube videos, okay? Because I’m trying to explain stocks to normal people. No, I’m just kidding. Okay.
No, in all seriousness, though, like, like, I love doing this, because I don’t know who’s coming across this video, somebody, you might be watching this, you might have two decades of experience in the stock market, okay, and I gotta still have some stuff for you.
Right? Some other person might be watching the stock market has been the stock market for two weeks, and they’re just barely looking into it. And so I always have to try to explain my bullish thesis is around companies in break the most complicated thing down to as simple of a subject as possible.
And this is a great thing for you out there. To do this in your own life with family and friends, you probably the majority of your family and friends, if not all of them don’t invest, okay? They don’t invest. They don’t they don’t invest in the stock market. They don’t pick stocks, like this is a like we’re talking about probably less than 1% of the world population pick stocks, okay.
And even way less than that, if not point 01 percent of the world’s population actually does this on a high level where they take the super serious have the majority of their money invested, do what I do, essentially, okay. So when you can explain your bullish thesis and you feel comfortable explaining it to somebody that doesn’t even invest, that’s a really good sign.
And you’re super excited about that, once again, they don’t have to believe it, cuz I don’t really know. You know, like, if that is a good sock or not, but when you can do that, that’s a really good sign. If you have a lot of trouble doing that. It’s usually a sign that you don’t really understand the company well enough, and you need to get back in there and do more research. Okay. Very important.
Keep in mind what I just told you right there. Okay, step five. Remember that? All right. All right, guys, Step six. Okay, as far as when to buy stock Exactly. What I like to do is if I buy into a stock and it starts going down, which sometimes happens, like it’s going to happen sometimes, and I hope it happens, like most the time when I buy a stock, I’m like, please go down, please go down, please go down.
Okay, I hope it happens. Why? Because I like to buy more shares for cheaper, I don’t just buy a stock one time, and then I never buy it again, I’m likely going to buy and buy and buy and buy, buy, buy, buy buy, like several different times like the Tesla stock, we talked about that one, I bought Tesla stock like 810 12 different times, I have so many different batches of telcel shares I bought in different accounts over time, it was ridiculous. And that’s what I love to do with the stock. I love to buy, buy buy.
And so imagine you’re in a scenario where the stock down trends so I like to buy more, if it goes down around 3% I like to buy more if it goes down around 5% and we’re talking about from the initial time you started the position.
So let’s say I buy XYZ stock for I don’t know $10 a share and it goes down 3% I’ll likely buy more of it. It goes down 5% from where I started that position at the $10 now buy more shares Okay, and usually if it goes down 8% 10% 15% 20% very rare. It goes down that much like 20% from where I started buying, but if it does, like usually I buy a little heavier, but along the way, as long as I still believe in the company just as much as I did before I will buy heavier okay.
So this is actually my deal scenario, what happens unfortunately, a lot of times is I will buy into a stock at $10. And then it goes up to 11. And then 12. And next thing you know, it’s $15. And now I’ve already up 50% on the position. Now I’m in a scenario where I’m like, shoot, I didn’t get my full position built out, and it’s already up 50% and then it keeps going up. So, you know, that’s the situation I don’t like to be in.
You know, when I initially build a position over time, that’s great. But unfortunately, sometimes that happens right off the bat. And it’s never an ideal situation. I’m actually much prefer this and yeah, you just use a disciplined approach, like it goes down, buy some more, buy some more, as long as you believe in the company, as long as this is a company that’s going to continue and you’re very sure about, you know, the company and their their prospects to grow in the future. Like you’re looking pretty good.
And as long as you bought in the evaluation somewhat makes sense. Okay. And last one, step number seven, really good sign to know if you’re, it’s time to buy a stock Exactly. Now, okay? Is mommy okay? It’s mommy. If, hypothetically, you had to put your mommy’s entire life savings into the stock. Would you feel comfortable doing it? It doesn’t mean you have to do it.
Just like could you even mentally go there? in like, this is a good like, kind of like mental test for you. If you were to take your mom’s life savings and put it in a stock and you feel comfortable. That’s a really good sign.
That means you’re ultra bullish if you have to think like 12 times about that. You’re like, heck, no, I wouldn’t stick my mom’s savings anywhere near this stock. That’s probably a bad sign. That means you’re taking way too much risk likely Okay, in this scenario, unless it’s like a spec stock or some scenario like that, which should only be maybe like 3% of your portfolio.
Unless it’s a spec stock like all these other stocks, you should feel comfortable like if you had to put your mom’s savings into it, you would feel comfortable in doing that and if you don’t, it’s probably not the time to buy that stock right now.
Okay guys, so hope you enjoy this video as always, this is a super in depth one on my perspective on when exactly to buy a stock I’m looking at kind of those type of valuations I’m looking at companies this way and kind of with this type of mindset and things like that.
And remember you can destroy Wall Street you can beat the market don’t ever believe any of that bs but you got to stick to discipline approach and you got to like actually put in the time effort not many people actually want to do it they want to gamble money, or they don’t want to do the research work in like it’s like anything in life you put it you like you’re going to get out of it what you put in you put in a lot you’re gonna get a lot out
you put in a little bit you’re gonna get a little bit out you don’t put in anything you’re probably gonna lose money okay, so it’s really up to you and what you want to do so if you don’t mind smash the thumbs up button guys this won’t be the video gets the most views in the world.
But I do appreciate the thumbs up. It helps the YouTube channel out massively in the algorithm, those sorts of things. So thank you guys for that you want to check out stock hub, it’s absolutely free to do so that’ll be the pin comment down there. If you want to try to apply for my private stock group and learn everything I look for in stocks, how
I run portfolios and things like that you can do so also I might have that as like the second pin comment down there. Thank you for watching and have a great day.