How I Find my Next $1,000,000 Stock. High Growth Investing Tutorial

well holy smokes this ain't no joke is look at this guy's a rare video in which oh my gosh you're looking at me I'm looking at you it's not like a slideshow video but here today I got a real treat for you guys okay there's definitely a video you want to make sure you watch all the way through because I'm giving out ridiculous amounts of value in this video here today I'm gonna take you through on the whiteboard exactly how I find my next million dollar stock and I don't want to say like my next million dollar starting I'm not talking about the next stock I put a million dollars into I'm talking about the next stock I put a hundred thousand or two hundred thousand dollars into and grows into a million dollar stock over time okay so that's what we're talking about here today I am this is gonna be a long very in-depth video it probably won't do very many cuts in this one I haven't brought a ball of water which means this is about to be an end of video this is a serious real deal Holyfield okay so hope you guys enjoyed today's video like I said this is how to find the next one million dollar stock this is a type of content I usually only put out for like folks that are in my private group and things like that so you know the fact that I'm putting this out on YouTube for free I hope you guys really enjoy you can you know show me some appreciation and also help out the channel by smashing a thumbs up button and let me know in the comment if you enjoy you know content like this ultimately in the end we'll see what type of views a video like this gets that will get as many as some of the more interesting videos but this is honestly the type of stuff that's really gonna make you a lot of money and so anyways hope you guys enjoy this as always okay so when a theme about finding my next million dollar stock first off what we're talking about growth investing okay we're talking about really growth investing this is not value investing this is not dividend investing okay well you're not gonna put a hundred K into a value stock and it grows into a million dollars you're not putting a 200 K into a value stock or dividend stock and it grows into a million dollars unless you're in that stock for you know 20 years or 30 years or something like that in the end the company executes on a high level for 20 or 30 years is it's pretty unrealistic okay if we're talking about the type of stocks that are gonna 5x our money 10x our money or more okay we need a growth invest we need to find companies that can consistently grow revenues okay this is very important they have to grow revenues by ten percent or more for just as far as I can see okay four years in years and years and years to go in the future okay value stocks sometimes you can find a good value stock and you can make fifty percent on it 100 percent on it in a matter of a few years if you get in at a very undervalued price when the stocks beating down sometimes you can play turnaround plays like I played a lot of turnaround plays that have made me good money in the past II you know just on the YouTube channel right elf was one that I got in last year that was a turnaround play that has kind of started to develop into a growth stock in that one we've been able to capture well over a hundred percent gains on that one in less than a year right fizzy get dizzy that's another example of like a turnaround slash value play one of my newer value plays is Cheesecake Factory those are those aren't the type of stocks that are gonna 5x in 10x your money and they just art there's some potential there there's some potential to make a lot of money in a short amount of time but not like 5 X 10 X type money okay the best example of a stock that I've invested in the last couple years that's obviously gotten you know huge gains would obviously be tassel stock okay you know that's kind of the poster child of kind of this YouTube channel and kind of that type of stock where you know we 5 X 2 + or money in that particular one might even a 6 X + or money and no matter about 2 years so if we're looking for these type of stocks where the heck do you look for them in the end ok so one thing I will say here on YouTube I want to give some YouTube creators some respect ok some YouTube creators you know actually put out some some good content around some growth stocks that actually have some potential ok know that the thing is about YouTube you have to sift through a lot of content and a lot of creators and a lot of people you know it I don't want to say it's a bad thing but let's be honest a lot of people have jumped on to the YouTube bandwagon and then started YouTube channels that might not even know what they're doing in the market you know I've been in the market for over 10 years I have a successful track record I've been on YouTube for four years plus people can see every stock I've ever bought or schooled on this channel there's a lot of people have jumped on the platform because they've seen people like myself and others make really successful YouTube channels and make a lot of money from YouTube as well from all the ads that are played on these videos right and they've jumped on there like oh now I can talk about stocks because I want to be you know big like Jeremy or one of these other youtubers I'm gonna be the next gram stuff and you know cool right but at the end like some of those people might be leading you down some really bad stocks okay and this is where you have to know what you're doing just because you hear about somebody's buying a stock doesn't mean you should be going out there and buying it like make sure you know what you're looking for in these stocks that's the biggest thing and then if you don't know what you're looking for you're gambling money okay there's a reason I have this picture not just because it's my City Las Vegas the other reason I have this picture up here is to show you you know that's where you go and Gamble okay what we're doing here this isn't where you go gamble money in my opinion okay so you know YouTube you can actually find some creators out there you know I for example you know when I was really looking super in-depth on Tesla when I was looking at it you know I looked at Tesla for about you know since the company went public I think was in 2010-2011 right 2010 I think it was and I tracked the company since then but I started really looking super in depth in a Tesla in terms of I'm going to actually think about putting my money in this at about 2018 I came around creator channel hyper change right Galileo and galley man he has some super insightful videos on the stock named Tesla right and between all the research I was doing in the stock you know brushing up on all the financial reports the conference calls looking at where model 3 production was at that particular time because that was something that was ramping looking at you know everything I was looking at as far as research in the company along with watching his videos I began to just understand this company has like massive potential like this is a potential 5 X 10 X plus stock over the next 5-10 years I should probably start buying the stock and I start accumulating position so there definitely are some creators out there that make some very good content that are actually very bright and know what they're doing out there ok so you know YouTube is a good place you can look you can look at their places like you know obviously the financial networks you know you can you know go on CNBC and some of those type of places the issue is with those type of networks you really have to sift through a lot of stocks the good news is you know watching if you watch you know a 10 hour straight at CNBC you're gonna see and hear about a ton of different stocks right and they got the stock ticker thing that goes the bottom of the screen you can be like oh let me look into this stock oh there's a tickers there let me look in that stock oh they bring on this guy who's talking about this stock you can you know go ahead and research it you can research a lot of stocks now the other thing is you've got to have to do the research work in the end no matter which route you go ok I could tell you a place I'm getting like half my stock picks now in terms of companies to look into and then like oh man I may actually buy the stock is actually my own private discord now the discord I have in the private group these people actually bring in a lot of stocks on if you think I'm the only successful investor you're hardly messy you know you're making a big mistake I know there are people in the private group now that are getting even better gains and I've get and I think fidelity has is calculated a 70 something percent ROI in the past one year on the public count and we have people that are beating my returns and there are some very high-level thinkers I'm getting about you know literally half my stock picks now from my own discord chat now obviously some of you guys won't have access to that and you know it is what it is you know Seeking Alpha seeking alpha is is fairly decent in terms of getting some different stock ideas out there some summer but it's gonna be garbage some are gonna be good but no matter which route you go in terms of gross stocks and we'll talk about what to look for in some of these stocks no matter which route you go you can't just buy blindly you can't just like you've read an article that was somebody wrote and be like I'm buying this stock you can't just hear somebody go on CNBC and say oh yeah this stocks you know some analysts on Wall Street from JP Morgan say well this stock is $45 day and we think it's going to $60 over the next year and again just like oh let me get in my account bump up about let me buy this stock it doesn't work like that man you are gambling money if you don't know what you're doing you are gambling money you have to like come to grips with that right now it is super super important some people get lucky and they buy a stock off a recommendation whether it be off one of my videos or somebody else's videos or one of these you know and they get lucky that's pure luck you just gambled money out there and you got lucky you've got to really know what you're doing in this you can't just you know long term it's not a viable option it's not gonna work out for you long term if you're gambling money around it's just facts okay so these are some of the places you can look for stocks there's other places on that but just there you can get so many ideas you know II could even like Google S&P hundred companies and go through the entire S&P 500 and look at what companies have growth you can go to you know something like Yahoo Finance go to the analyst tab and you're actually going to get to see you know what the company's grown revenues by in the past and what analysts expect the company to grow revenues in the future and then you can start researching from there oh this company has 25% revenue growth and ALS expect them to grow thirty five percent next year hmm let me look into the company a little deeper go to the Investor Relations page of that company start doing some research work there okay so there definitely plenty plenty to you have ways out there that you can come across stocks there's no shortage of how to find stocks out there it's one of the silliest questions I guess sometimes people are be like Jeremy how do you you know continue to find stocks to look into and whatnot I'm like dude it's not hard like there's a million stocks being mentioned all over the place it's just up for you to actually you know pay attention and look at the stock and be like okay let me do a little bit of research do I see something I like there no okay then you know the research ends so let's continue on here essentially so let's say we find you know our growth stocks so we find something that seems really interesting to us and we start researching it okay so you you know might have heard of stock you mentioned on the YouTube channel on you know CNBC or wherever it is okay so you hear about this stock XYZ and you're looking at it and you're like hmm this looks pretty dang interesting so what I like to start with is the business first okay do not worry about this this is such a cardinal sin of stock market investing my opinion people worry about financials statistics metrics before they worry about the business I can always tell a lost investor when they bring me a stock and they start out with telling me the trailing 12-month PE and the price to sales ratio an intrinsic value and blah blah blah and they haven't even talked about the business yet that's a lost investor okay you always always if you really want to make a lot of money in the stock market over time you better always start with the business first okay guess what any great investor business person we'll ever tell you is the most important thing it's not some magical metric it's not some financial statement okay all that stuff's important but always the most important thing is the business first okay so you need to understand that business on the highest level possible you need to understand that business in a way an executive would for instance okay and the only way you're going to be able to get to that level where you understand the business on such a high level the only way okay and be very clear about that is by doing the research work you must read the 10k annual report you must read the latest 10-q you must listen to the latest conference call not once but twice okay always listen to conference calls twice I've been in this game for over 10 years now I always listen to a conference calls of companies I really care about twice okay or a company I'm gonna buy why because a conference call and there's 30 minutes to 60 minutes long usually okay usually minimum 30 minutes usually you know upwards of 60 minutes right there's a good probability that something happened in that 60 minutes that all of a sudden you stopped paying attention to what was going on their conference call rate all of a sudden you know your kid walks by and you like oh man you know ulsan you start playing with your kid and you got the conference call it but are you really paying that close attention to what's going on well so and your friend comes in the room or or your dad or or you know a family member a friend or somebody and they say something to you and you're like oh yeah oh yeah we'll eat dinner this and this time okay no you just lost concentration on what's going on there man like this is why you have to listen to it twice not only that is not only is it like distractions from other people or pets or whatever that can you know kind of take your mind off things but also you can hear something on that conference call this happens to me all the time this isn't you know the biggest thing that happens to me while I was in the conference calls at least twice is there'll be something mention in that conference call and all of a sudden I'm like my mind starts going boom boom boom boom boom over here and I start getting a you know like fixated on whatever I just heard in my mind's over here and I'm like oh my gosh yeah that's a business big business opportunity and also now I'm starting to think about that I'm starting to add up numbers oh my gosh they expand over here who the competitors over there oh they're trying to do this and also there's meanwhile the conference calls still going on in my mind you know ten miles over this way now and so whatever is going on in the ears it's not I'm not even listening to it anymore because my mind so far over there and also and I finally finished that thought after a minute or a few minutes go by and then I'm back on the conference call again but meanwhile three five minutes of the conference call I just missed that something very important could have happened in that three or five minutes on the conference call okay something very very important so you know you know this is vital stuff guys you have to listen to it twice okay something else on investor relations page of a lot of great companies is what's called an investor presentation we'll call it an IEP let me see if my camera is gonna stop oh we're only 14 minutes into this we're looking good okay investor presentation so not all companies have investor presentations on their you know investor relations page but some companies do and you tell you these investor presentations or incredibly helpful okay absolutely incredibly helpful these can you know between all of this between going all in all of this right you read a full 10k and went by the way with the 10k make sure you're not blind reading what I mean by blind reading is you're going through the pages but you're not retaining any knowledge because once again your mind goes somewhere else this is something that happens to me is something that happens to a lot of folks we're also in your mind starts going to somewhere else if if your start blind reading that annual report stop take a break you'll do something come back start reading again and if your mind wanders off again take a break like if it takes you a week to go through a 10k that's fine man that is perfectly fine okay you know I can go through a 10k in about 3 to 5 hours roughly but that's if my mind's fully there and I'm ready to rock and roll ok 10-k 10-q conference call twice an investor presentation you should be out of place where you understand this company on a very high level and if it's a growth company that could be your next million dollar stock right you should be able to act you've gone through all this have a very high level of understanding if you don't it's probably not in what's called your circle of confidence ok this is something warranted it's something I learned from Warren Buffett your circle of confidence okay we'll just call it the circle meaning essentially not all businesses you're gonna understand okay there's going to be definitely a good amount of businesses in here that you're gonna understand a very high level you're just gonna get it you're gonna understand why this company's gonna grow so much in the future but unfortunately there's gonna be some that are kind of in that gray area where you like almost almost get it but you aren't quite there and there gonna be some companies on some sectors in some industries that you just don't know you're just completely lost on and they're way out there and you're like man there might be something there but honestly I just don't know what these growth rates are I don't I can't really like I don't understand what this company has a competitive advantage against this company over here and that's fine okay there's no shame in that game there's no shame in that game there are companies I look into in industries I look into that aren't in my circle of competence and I've been in this for over a decade now I run a successful business like I know business I know these companies and I'm not ashamed to say there are a lot of companies out there that I don't fully get K in Warren Buffett will tell you the same thing guys worth you know if you haven't given away so much money you'd be worth well over a hundred billion dollars right this is very very important there's no businessman I know about there that understands all businesses on a super high level it just doesn't exist so if you've gone through all that and you just don't get it I don't care how much you know somebody says they love that stock and how much upside don't buy that stock it is not worth it you know the pharmaceutical industry is a good example of just an industry I don't have you know enough knowledge on I just don't quite I can't quite wrap my head around those type of stocks to understand why this this pharmaceutical companies gonna be the next giant or something like that right same thing with stocks like Nvidia AMD right Nvidia and AMD these type of stocks have gone up tremendously over the past four or five years and I've looked into these companies and NVIDIA was in it for a little bit but honestly Nvidia really shouldn't even have been in even though I didn't make money and I was fortunate I was kind of like over there with Nvidia it really wasn't in the circle but it wasn't outside I was like I'm almost there but it just couldn't quite wrap my head around the opportunity there AMD this is stock I look into when I was like two bucks yeah AMD's in the 50s now but my head just couldn't quite wrap around I was like that I think there's something there but gosh I just I just don't really know I just don't really know I can't quite wrap my head around and I looked into again and I was like dang I just don't know I just don't know you know how this company is gonna grow you know X amount over the coming years and there's no shame in that the great thing with the stock market is there are thousands thousands of stocks to and pick from out there thousands of stocks to invest in okay which means essentially if you don't understand this stock in this stock you still got thousands and thousands and thousands of stocks to go through which means for you this is a massive advantage because I can guarantee you when you're looking at his company you're gonna find some sector some industries that you understand on a very high level and you're gonna be in that circle of confidence and you can find that okay now so now we know kind of you know kind of research frameworks here and those sorts of things very very important to understand this and by the way if you're somebody that's watching this video right now and you're looking to scale your portfolio okay you're looking to you know grow your portfolio from let's say you got 10,000 or 20,000 or 30,000 you're looking to grow it to a hundred thousand plus or you're somebody with you know 100k in the market or something like that and you're looking to grow it to seven figures check out the first link in the description down there and go ahead and get on a call if you're approved you'll be able to actually get on a call with somebody high up for my team and we can actually talk to you about how to scale your account we actually have some products out there that can actually help you do that okay now next thing we're looking at when we're thinking about a growth stock is we have to be going after a fairly big market opportunity okay let's call it market off okay mark it off very very important if you're thinking about a growth stock okay and this type of stock is gonna 5 X 10 X if you're getting in that type of stock that you think is gonna grow massively you usually don't want a company that's going after a niche ok a niche industry or something like that doesn't mean you can't work it's just not as likely to work you really need a company that's going after big things a big growing industry okay an industry that's grow okay we don't want to get into a sector that is in decline we want to get into a sector that is growing okay this is very important and we would love to get the number one player in that growing sector okay if we can get the number one player in this space we're talking about okay now no now we're talking about a this is so these are some of the things I'm looking at if I'm going to find that next million-dollar stock market opportunities because think about it this way okay let's go through something like you know Tesla right since Tesla's a stock that's obviously you know we've been able to 5 X 6 X or money and you know just a matter of two years and that stock right and let's kind of run through some of this and by the way you know I didn't expect the stock to have gone up as much as it did but sometimes that happens with grow stocks they go up even faster than you thought okay but you know when you think about something like test so it's going after a massive market opportunity right in terms of their main product right automobiles like massive category just massive category right they're in a growing sector in terms of electric vehicles right electric vehicles some of us obviously feel like this is going to be the future all cars in the future will be electric vehicles right so they're going after a massive growing sector right the number one player in electric vehicles so as long as they continue to innovate and as long as they continue to you know keep their lead they're gonna stay out in front of everybody and guess what they're gonna just capture massive market and that's why a company like this you know Elon Musk has gone on record saying you know he expects that company grow revenues 50 percent plus you know outside of a recessionary year really bad year or something like obviously that's going on this year the rona he's talking about 50 percent plus revenues for as far as I can see how do you get to that place like how could you how would you already have a big business like Tesla has tens of billions of dollars of revenue and expect your business to grow you know 40 50 percent plus a year for as far out as I can see as long as it's not in a recessionary year how because you're going after a massive market opportunity in a huge growing sector and you're the number one player and as long as you can just keep it going and you keep the compounding growing oh my gosh listen you have this massive massive company on your hands okay if we look at a stock that I've identified recently okay and I'm trying to talk about the stock too much now because it keeps pushing up the prints every time I mention this one but it's what I think will be my next million dollar stock it's a stock called you know playing at 13 some of you guys might know about it if you track the channel this is a stock I started buying when I think it was like a dollar 20 or dollar 40 or something like that very small company OTC smaller company then I usually buy what when I looked at this company I said okay this is a stock that going after a massive market opportunity that's growing huge right there's a huge growing sector right MJ space but you know if you know what plan 13 does they sell MJ they have super stores they have different products out there that are MJ related right this is something that's just started to get legalized on a state-by-state level very recently right in Canada as well things have been legalized over time in the United States I think federal legalization is coming to the MJ market over time so we're talking about you know the MJ market on the illegal market has been massive for longest time it is probably gonna be even bigger actually a lot bigger when things are legalized right growing sector number one player when it comes to their super store experience as well as potentially number one player with their consumer brands over time and so I'm looking at this stock and I'm like hmm this might have a little opportunity to end up being the type of stock that ends up you know 5x in there 10x and our money over the next 5 or 10 years this this is so this is so big when you're thinking about growth stocks guys you have to really have these three and you know if you're looking into growth stocks in the future run a checklist with these three things okay you need to have all the other things I look for in stocks I teach to my private group and things like that but these three things specifically or massive okay these three things are really big okay now let's get into a fourth thing that's really big here which is the CEO okay yeah you know if we were just you know buy past this one and say this isn't important it is extremely important great CEOs can 5 X 10 X 20 X their stock prices over time I've seen it time and time again from great CEOs that end up accomplishing things like this CEOs that are so like like steadfast in the bid yes that they just they just understand the business on a high level and they just keep push and push and push and they're going after these type of things okay you know I I mean obviously some some names that will come to mind will be Steve Jobs right Steve Jobs with Apple somebody's just understood like how to continue to grow the business focus on big market opportunities in a growing sector right this is something apples always done phenomenally always make sure we're like the number one player they're you know very important in when we think about number one player we're talking about Apple always like Skippy at the high end so it doesn't mean you have to be number one player overall but in your specific you don't when you think about let's say the smartphone market right massive market ton of competitors in Apple's and number one player on the high end and the high end because smartphones such a big massive market like almost everybody in the world has a smartphone right this isn't a niche mark this is still a massive market opportunity even though you're up here competing as something to keep in mind you're not really niching down if you're if everybody in the world needs something like that keeping that in mind okay guys so you think about Steve Jobs you think about a Mark Zuckerberg obviously you know that stock went public at you know $38 back in I think it was 2012 or so that's a stock that here today is you know roughly 250 or so let's say somewhere around there and at its lows after when public actually went all the way down to under $20 a share you think about somebody like Elon Musk right Elon Musk has done a phenomenal job throwing tests over time testicles public I think that stock was I want to say it was under like $20 a share right Tesla you know here today is like $1500 or whatever like it's you know massively value compared to when it went public at like $20 a share you know those are some of the big names obviously you could think about somebody like Bill Gates you know the growth Microsoft had you oh my gosh back in the day especially I mean Microsoft's got back to good growth right it they had a phenomenal growth in the Bill Gates days they hand the business over Steve Ballmer and Steve Ballmer never really was able to get that massive growth going really for the company again unfortunately until it was healthy with the company was kind of passed on to Sasha and Adella and Sasha Nadella was actually able to grow that business to be a much much bigger business over time so you know you know the CEOs really really important right you think about Jeff Bezos right somebody that's being able to grow Amazon from just a teeny tiny company when they went public to now I think they have the second biggest valuation in the world something like 1.6 trillion dollars right great CEOs can make all the difference in the world and what do all these great CEOs have in mind they all go after huge market opportunities they all go after a massive growing sectors they all go after you know being the number one player in that market trying to be that number one player and they all have phenomenal CEOs ok let me tell you about a stock I was involved with back in the day I don't own the stock anymore made me a lot of money and you know if I would have started investing even younger it would have made me a lot more money this is one of the best performing stocks from about 2002 to about 2020 one of the top performing stocks out there in the stock market this talked in just 5x or 10x this stock went up tens of thousands a percent from 2002 until 2020 tens of thousands of percent ok this company is known as monster beverage corporation today ok but back in the day they used to be called Hanson's natural ok I don't even know where to write anymore at this point in time ok this company used to be known as Hanson's natural beverage it was like a small apple juice related company they may like apple juice and some different juices out there and things like that super small market cap just kind of a joke of a business ok and the gentleman that actually took over the business a CEO and co CEO that have taken over the business they understood there was this massive growing category where because there was this company that was growing like crazy and it was Red Bull the company was called Red Bull and they were under this new wave which was called energy drinks ok energy drinks believe it or not or something that's really gotten popular over the past 20 years you know prior to that there was a really like an energy drink category okay so these gentlemen saw this and they saw this company red bull growing like crazy and they were going is this huge market opportunity in a massive growing sector right I mean you think about market opportunity its drinks right yeah massive market opportunity everybody needs to drink something this is you're going after a huge category your huge growing sector which was energy drinks right and this company was a number-one player in this company named monster they said what if we go after this massive market opportunity as well what if we grow go after a growing sector number one player okay and what this company ended up launching was ended up being what's called monster okay they end up on state launching a product called Monster Energy okay Monster Energy and this ended up growing into a company that went from being you know maybe a 60 million dollar market cap to 30-plus billion dollars just incredible they launched this product in 2002 and they focus on kind of you know putting the products and events and things like that they watched what coca-cola did with their product obviously you don't coca-cola obviously being you know a soda maker out there and they looked at this and so if you were looking at this stock you know let's say in 2003 2004 you're gonna saw oh my gosh this company that's a that's a you know a juice maker historically is coming out with this product is getting more and more popular it's getting into more and more stores is in there's a massive growing sector that's probably gonna grow for years and years and years to come and oh my gosh this company might end up becoming the number one player over time they're already kind of emerging as the number two player right and you see a CEO and co-ceo making a move like this you know the bells can start going off in your head kind of starting to realize oh my gosh this might be a massive opportunity stock and look at how small it is today and think about where this company's going to be ten years or 20 years from now as this category continues to grow and if this is a number one or number two biggest player in this market that you know because you can just start thinking about and you think well Coke and Pepsi and you thought about the competitive landscape and this were we come to the competitive side okay this is why I wanted to bring up this one you think about competition because competition is important if you want to achieve big things and if you were looking to this company back then you could have saw their coca-cola was non-existent in this market in Pepsi we're not exist in this market and these are the two biggest threat companies if you're thinking about if you're looking into this company in 2004 right you 2002 they launch a product you let's start looking in 2004 you're like oh my gosh this company's growing like crazy you're doing your research on it right and you're like oh what are the what about the competition you're looking there's this company red bull less competition but the two biggest threats to you at that time are coca-cola and Pepsi by far and they just weren't even threats they were just kind of like I don't really sleep with the wheel essentially you know Coke and Pepsi could have had Coke and Pepsi could have been Red Bull in Monster and they just miss that opportunity because Coke and Pepsi we're looking at it as this is just a small business over here we got this massive soda business and we keep buying out other companies and that's just some energy business over there whatever okay and they kind of brushed off to the side you could have saw oh my gosh man well we got like a free run at this right and this goes back to Tesla right remember we're talking about tests earlier something I looked at when I looked at that stock from a growth perspective is oh my gosh competition nonexistent GM and Ford and Volkswagen all these other companies Toyota Honda they could have taken out this company a long time ago but they were like oh that's just some nice thing over there and it wasn't until they past year or two they started taking this serious dude that's way too late like you needed to be on this stuff ten years ago if you really wanted to succeed and then when Coke and Pepsi try to come in this space many many many many many years later started taking a serious which they even started taking a serious Salt Lake past like 2015 they couldn't have success in this market because everybody was already used to drinking if they want an energy drink product they were used to drinking Red Bull they were used to drinking monster and their Coke and Pepsi were like we just missed the massive up and market opportunity because we brushed off the side and what ended up happening Coca Cola ends up buying a massive stake in monster beverage because that was the only way they could succeed in this market let's just get a big ownership part they bought like 20 percent or so of Monster energy isn't that funny how it worked in the end right and that's something identified with Tesla the competition not exist in here with this company there's not realistic competition everybody should have been focused on this stuff 10 years ago you don't focus on it when it's already on your face it's too flippin late at that point they've already you know this company's already been branded electric vehicles I'm Thomas driving things like that if you're just gonna start focusing R&D efforts on it now it doesn't matter if you invest ten billion dollars in the space or 20 billion doesn't mean anything to you and then because you've already lost its two year to four behind the 8-ball now right you think about obviously imagine you look into Apple right around the time they launched iPhone okay let's say 2007 2008 now Apple stock had already came back a lot at this point okay Apple stock had already come back tremendously at this point when you think about this Apple stock was a stock that was almost bankrupt I mean this stock was literally almost bankrupt back around 2000 let me see no it would have been right around 97 98 this was a company that some folks thought Apple was going out of business right and I believe was 1998 Apple got an investment from Microsoft right then I ended up helping Apple save the business and actually that investment made Microsoft billions and billions of dollars as well right but let's imagine you don't you look into it back then because the company was almost bankrupt in you know to get in at that time you would have had to be super brave and super confident and risk taking a lot of risk right Apple in 2007-2008 was not nearly as risk as risky if I recall the company was well profitable from there I pet and from there iPod business right as well as their iTunes business as well as they had rejuvenated their computer business you know Apple was on the up-and-up they were a growing company and was looking bright okay then they come out with this iPhone product right in 2007 2008 and this is a product that you know if you really were absorbent at that time this was a game changer this was a game changer in the market okay so imagine you look at what was out there in the competitive landscape right yeah and you think about it if you were looking at Apple as an investment at that time thinking about this is a growth stock right Wow this company's going after a massive market opportunity right everyone's probably gonna have smartphones in the future right once people experience this product they're probably not going back to flip phones right and if you would have made that observation obviously you would be successful but it's like once you experience something so much better you don't go back to the old thing right it's like once you drove a car you don't go back to like let me have horses again or something like that right once you experience an electric vehicle you don't go back to ice vehicles once you experience an iPhone a smartphone in general high-end smartphone you don't go back to flip phones it just doesn't work that way right so you look and you say this company is going after a massive market opportunity this company is going after a growing sector which is huge smartphones right phones in general right this company is you know as soon as like 2009 hit it was clear they were the number one player in smartphone category right they have a CEO who's clearly grown the business he grew the business in the past right left the business it fell apart came back to the business down on the right track and the competition was non-existent if you looked at all the other players what they were doing in 2007 2008 2009 2010 2011 there was no real competition Apple didn't get in any real competition really until I think it was 2012 to 2013 when Samsung started to compete with them they actually made some bigger smartphones and some customers jump ship or or you know experience Samsung for the first time or something like that right and so you think about that time period Apple was just running by themselves men they were just running by themselves for years and years I saw Apple got to leapfrog everybody they got to get that iPhone experience in everybody's hands and everybody ended up you know loving the product loving the software the software is what really made the iPhone in the end and what continues to make the products to this day that's not the hardware experience everybody's got a good camera on their phone right everybody's got a six inch screen or whatever right everybody's got a nice screen everybody's got speakers it's the software experience and they got everybody used to that software loving that software and they were in the clear and they were set for the next 20 plus years right and they're still set to this day and they became the biggest company the world the most profitable company in the world right all on the back of the fact that other companies just were not taking the competition serious enough right BlackBerry was trying to you know compete in a different way and it was like blackberry you're behind the ball right Nokia was just not even a threat Nokia was still so focused on selling flip phones because that was what made Nokia successful right and you'd have look at that and I was like you guys just missed a massive opportunity right you look what Bill Gates did with Microsoft right a company that you could have made tens of thousands of percent of gains over time if you invest in that back when it anytime you know it would public or whatnot right you know there were plenty of big tech companies at that time there were just different type of tech companies that could have easily emulated or did something Microsoft did Microsoft just the competition just was asleep at the wheel and this is what happens the big companies fall asleep the little guy comes up steals market share grows grows grows bigger and bigger they're going after if they're going after this man its massive okay you know the same thing you know happen with obviously you know the FB over time you look what you know Jeff Bezos has done with Amazon whereas Walmart been what Mertz just started taking ecommerce serious in the past like I feel like the past two years I've got attract Walmart forever used to be an investor the stock back in the day made you know a little bit of money on the stock but at the end of day Walmart these dude they should have owned Amazon they should have owned Amazon but Walmart was so caught up in paying attention to expanding retail stores rather than watching what Amazon was doing it being like let's emulate this man let's start taking online super serious and this is why Amazon has beat Walmart and will continue to beat Walmart in the future because Walmart lagged there's a Walmart went from being the premier biggest retailer in the world to now there will always be number two behind Amazon because it's just it's too late at this point to try to even think you're gonna be number one ten years ago fifteen years ago if there was hanging this serious dude they would have had this market Amazon wouldn't even have been a big thing at all Amazon would have been fighting for number two and Walmart just missed that opportunity so this is something that consistently happens with growth stocks okay so now we understand kind of the markets that you're going after and things like that okay now we've got to talk about the next big important thing which is valuations because as you know financials are important obviously you know the most important thing is you know what type of opportunities that the company going after one of the business fundamentals but also when it comes to these growing companies people ask about valuations because sometimes some of these stocks a lot of these stocks right if it has phenomenal growth it might be trading at a rich valuation right I mean we see some of these stocks out there especially right now right in this market that we're in right now all these stocks are training at very rich valuations and when you think about this the valuations sometimes don't seem right it seems preposterous it seems ridiculous sometimes right so we it's just a discussion we have to have on a I love valuations by the way if you're new at a stock market I actually don't suggest you invest in growth stocks I think they're to jetan too dangerous for most newer investors once again you you're free gamble your money if you want and just stick money and something you don't really know what you're doing let me tell you from my standpoint I was in the market for about five years before I even thought about like investing in growth stocks why because of this right here valuations see a value stock you can look at things like a forward p/e right and you can say well it's under it's at a 1440p that looks pretty fair because the market in general is trading out a 24p and as a company is likely going to grow revenues 3% next year and they grew revenues 4% next last year and so this is a solid you can it's so much easier to value profitable companies especially immensely value no profitable companies companies with long track records of profitability and companies with low growth it's so much easier to value them what happens when all saying you have to value a company that's trading at a six thousand forward p/e okay what happens when this when you get this put in your face at six thousand forward p14 price to sales ratio okay we do now because if you're just looking at those numbers you will never ever touch that stock I can promise you and the problem we get into when it comes to growth stocks as many of these growth stocks trade at a hundred plus four p's which by the way the ford p is a most important metric to me in the stock market at least when it comes to value stocks dividend stocks a little bit of growth stocks but not that important and so we're the reason I couldn't get engrossed stocks the longest time was because I was trained as an investor right let me look at time here how we're doing 16 minute we're doing good okay so when I was when I you don't came up in the game essentially I learned from Warren Buffett I learned about valuations and I learned kind of what a fair you know PE was and things like that and then all sudden you're hit with this in your face you know like uh no I'm not touching any growth stock ever because they all look disgustingly overvalued okay overvalued it's the famous term that is calling to all great growth stocks out there it's overvalued man you hear it consistently you know obviously stocks like zoom stocks like Shopify right now I feel like are the the quintessential type stocks where people are talking about overvalued bubble stocks right obviously Tesla gets in that same category a lot of folks say that saw it's a bubble you know whoever's right in the end will see whoever's right in the end they're I'm not there to debate that but the fact is those hit a lot of people because they look at it and they say Shopify is trading out of 10,000 40 that sounds ridiculous because the market trades at a twenty four p or an eighteen or twenty three depending on the time and things like that right and the market in general trades that price to sales ratios of one point four or something like that right and this one trades at a fourteen or I think I saw zoom recently was trading at a price to sales ratio which is you know price of stock versus revenues of I want to say it was in the 70s or 80s or something like that it was it was you know insanely high that's not the way you value growth stocks okay let me be very clear about this you kind of can't even look at this stuff and this is why it is frustrating for even somebody like myself that's a value and you know that was trained to be a value investor because that stuff is not how you value a growth stock okay it is not okay how do you really value a growth stock because you really need to think in terms of what is what is it the potential market cap size for this company over time okay what is the potential market cap size for this company over time you need to think about five year out revenues okay anything about five year out revenues you need a thing about five year out net income okay and this is where it's so different from dividend investing value investing it's why it's so much more it's so much harder for me to teach growth investing and I've had to really think about this in the past like how do I teach somebody to value grow stocks and those sorts of things because value investing I don't have a it's actually pretty easy for me to teach somebody you know about look for this and dividend stocks look for this in value stocks but how do you teach somebody that a sick thousand for P is actually a deal huh stock because it sounds stupid right it sounds completely stupid but the trick is you have to really this is where we go back to remember at the start of this video we talked about the research work reading the ten case the 10 cues investor presentations conference calls looking into that industry on a very high level all those things are paramount regardless of any stock you buy but specifically growth investing okay because you dude you never gonna be able to figure out a potential market capitalization for this company five you got revenue five-year our net income if you can't like quantify how big the business can be in the future right so the way I do it was some stocks I'll give you two examples we talked about Tesla and talked about obviously my newer one plan 13 so when I've been in for a couple years one that's a newer one for me right at twenty twenty-five right so let me think about how I figure something like that okay so with something like Tesla what I did an exercise I did for that particular stock is I started to run numbers as far as like well what did I think Eevee's would grow to each year okay what I think evie growth would be each year how big do I think you know winter what I think Eevee's would hit like 5% when did I think Eevee as a percent of total cars would be ten percent right I looked at the total amount of auto sold okay so total auto sold and I said okay there's seventeen million cars a year sold in United States and there's 15 million roughly sold in Europe and there's 21 million sold in China I started running all these numbers and start going down the list and I said well this how many Tesla produced this year right and that was back in 2018 so I was really I think I was looking at 2017 numbers at that particular time and I said well they're probably gonna start moving this many model threes in the future and if you look at some of my old like Tesla breakdown videos when I would like say you know tell starts going to three thousand dollars in the future and then whatnot right if you look at some of those old videos essentially what I'm doing as far as exercises ago is I'm breaking down the percentages and how many autos is Tessa gonna likely sell from model three and what about an affordable SUV they would come out with in the future which obviously now we know is model why right and what if they come out with a pickup truck in the future how many because they likely move in that market and what type of market share did I think this company could have over time that's a really big thing in the market share and so I started running these numbers I say well if they have 25% mark this year and I feel like I'll have at least 25 percent market share because I understand the business on the high level I understand how bad the competitive landscape is I understand the type of market share somebody like Apple commands in the United States in around developed world and I kind of look at them as kind of a benchmark to where test is going in their sector as far as electric vehicles in the future right and I start running all this and I'm like okay if they get a 25% market share it's this number right and if they get a 50 percent market share in the future then it's this number okay and I start running numbers and I understand the auto industry in a very high level because I've done a lot of study on ok and so I look at something like this and I'm like ok 17 million autos a year sold now numbers probably gonna go down in the future because of ride-sharing autonomous vehicles things like that so maybe the number in the future maybe 10 years from now is not gonna be 17 million cars sold a year maybe it's 12 million cars a year sold in the United States ok and that's in 10 years from now ok now if that's the case right and Tesla has a 25 percent market share they're moving three million cars a year right if they have a 50 percent market share which I think there's very much possibility as long as they keep their lead up and they keep you know moving up the pace - Tesla moves out which is for faster than anybody else they can pee with right sometimes I continue to have that innovation they should be doing six million just in the United States of America okay just in the good old USA now what about Europe now what about China now what about the rest of the world right and so you start running some of these numbers and I'm like this is just one facet of Tesla's business and then there was a autonomous vehicle opportunity then there's in app purchases that you can make on tassles right and I started running all the numbers on this and it's just the numbers get so crazy that it's like I had a thirty billion or forty billion dollar mark cap whatever I was buying the stock at it was it was the deal of century if you looked at any metrics on it if you looked at price to sales ratio if you looked at things like this is where people get really confused with this one they were looking at what is Tesla's market cap versus General Motors because General Motors sold this many cars last year and Tesla sold this many so General Motors do Erbs it's a very very scary word to use in the stock market when you're saying this stock deserve something nothing deserves anything in the economy especially in the stock market when people would be like GM deserves a bigger market cap than Tesla Tesla doesn't deserve this market cap and it's like dude look at the future numbers look at what they're going to possibly be putting up in the future this is where we're valuing the stock awesome you were valued off of what they're doing the day if you want obviously it doesn't make sense right because this company is the future and they had this massive competitive leave they're gonna probably continue to expand because these other guys just don't move as fast as this company nobody's moving so much faster anybody else right and so this is where you start tall some value of stalking you start to figure out this is a company that will likely have market capitalization of hundreds of billions dollars five ten years out if not a trillion dollar someday right and so that's when I start running these numbers and I started realizing this talks to steal I'm stealing money I'm stealing money from this stock Wall Street's so caught up in what numbers are they hit in this quarter and I'm worried about what numbers are hit in five years from now we're playing two different games that Wall Street's playing checkers over here and I'm playing chess it's a different game so something to keep in mind mostly is Wall Street analysts maybe they don't have any track record of successful stock picking or anything like that they don't know how to really value a growth stock they mostly analyst didn't have a clue on how to value Tesla the company that was likely gonna grow revenues fifty percent a year for you know as long as I can see there used to value in Ford which is a company that's pretty much stagnated right and by the way this roni situation has messed up the autos worse than ever and that's something I predicted as well let in pass what I've done videos in the past many many years ago I was shoot the back when we were living in the three-bedroom apartment back in the day I do videos talking about the next time we had a major recession the auto industry was gonna get absolutely wrecked in that whole situation guess what we're in a major recession right now and the auto industry is getting absolutely wrecked you looked at that if you look at the numbers a lot of these automakers are doing down like 20% down like 30% 40% numbers for these automakers right this is really important let me look at time kiss after it is by the way when I look at the time it's because the camera shuts off at 30 minutes and if you ever wondered why does it DSLR shut off at 30 minutes why are they all forced to do that it's so the tax rate can be lower because if it can record from longer than 30 minutes and that's to be called I think a camcorder and they get taxed at a higher rate just a little FYI let me restart this already there we go so that's that one so that this is this is how you value it okay you store really this is how you actually start doing it this is one specific example and then you start figuring out the market capitalization of this company in the future is gonna be ridiculously high right now let's run through a newer investment of mine 2020 by right let's talk about the planet for a minute a plane at 13 right so this particular company you know I'm looking at in the space and how I value something like this you know people look at it today and they're like you know especially after the stocks gone up a lot I think the market capitalization now is right around 300 million or so for this company right so let's say 300 mil now people are making the what I call the Cardinal send the same exact mistake with this one and by the way this one's a little more speculative in my opinion the Tesla was so this one has bigger risks but also bigger reward potential in my opinion on this stock Tesla was you know a thirty billion forty billion dollar market cap when I bought it this one is you know yeah when I was buying it it was under two hundred million dollar market cap right but the cardinal sin people are making with this stock in my opinion is they're looking at what they're doing today and they're saying it doesn't in this company shouldn't be valued the way it is today because of what they're doing today right the same exact problem that happened with Tesla the same exact reason I never bought Amazon stock back in the day because I looked at aims arms like that for PU seems so ridiculously high and look what Walmart trades up not realize that oh my gosh Amazon's gonna take out Walmart in the future as Wells you know tons of other retailers and all they got this Amazon Web Services business said no one's even looking at this end up being a Goliath right and that's the profit machine for Amazon so you know the Cardinals send people are making with this one there's looking at this one they're like oh my gosh it has one superstore okay one big superstore big deal and they're like this company doesn't deserve to be up jamil and if you're valuing growth stocks that late you're just making a big big mistake okay because what I look at with this stocks as I say yeah they got one superstore today they're likely gonna have five to ten super stores within the next five years okay and what type of revenue can they likely do from those stores in the future and what type of comp store sales are they going to likely be able to get from their current locations over time because it's not just about you open the location but then you have to build up business so hopefully that that superstore is doing much more business three years from now five years from now than it was the day you opened it right because you word as to spread customers has to start coming to him getting used to coming to that business and things like that right this is super obviously you know very very important so I looked at them I said that and I look at the Amazon Web Services of this business that everybody's missing or actually they're owned brand's okay they're owned brands and I look at this massive category that going after this massive space and they could potentially have the number one brand in Gummy's they could potentially have the number one brand in chocolates as well as you know flower related products in the MJ space and so I'm looking at all this and I'm like this is a potential multi-billion dollar company in the future yeah it has you know when I was buying it I think it had 150 million dollar mark capper 180 million dollar mark pepper something like that and I was looking at it I was like yeah that seems really rich if your value just off of the one superstore today that does you know at least a 60 million or whatever in revenues okay you're just valuing off of that but when you start running the numbers on where this company can likely be five years from now in ten years from now it's a whole lot bigger than it's at where where it is that today and so this is what I like to do is an exercise with these type of companies now there will be and it's so boring so that's why you can't just buy any growth stock okay how you know a growth stock is not buy is if you're looking into one and you run those five year out net income numbers revenue numbers once again you can only figure out this type of stuff if you understand the business on a very high level the market capitalization things like that and if five year outlet came if five years out the numbers still look silly okay and they don't make anything sense it's not a buy okay it's not a buy if the numbers look silly five years out based upon the net income revenue you rose yeah you you you know you kind of drew up there it's not worth buying okay I can tell you when I looked into Tesla and that was a once again I think a thirty or forty billion dollar mark cap right and I looked into this company I said the valuation today looks silly for this company but in five years from now it looks silly in a good way in terms of it would be a steal and a half if this company was still valued at thirty or forty billion dollars five years from now it wouldn't even make sense because of the type of revenues this company will likely have in five years the type of net income this company will likely have in five years the type of market share this company will likely have in five years like it just wouldn't make sense so I knew it was a steal the valuation the short-term did not look right the valuation of long term was like I'm getting a steal and start savings acting would play and I looked at his company I was like I'm paying a hundred and sixty or a hundred eighty billion dollar mark capsules company or whatever right and looking at I'm like today yes that valuation makes no big sense but oh my gosh in five years from now this valuation should be tremendously above where it's at today because this was a bit like to be a company that will be doing three hundred million or five hundred million in revenues and have brands that just buy the brands themselves could be you know commanding evaluation of a hundred million dollars or more just from several of these brands you start putting all these pieces together and that's how you start figuring out on a valuation basis if something's really a good deal on the grow stock space and then you can go after it now something growth stocks provide you okay and this is kind of a really good thing in my opinion is volatility and this is the last piece I want to cover in this video volatility these growth stocks will usually be very volatile okay because their growth stocks and growth rates change and everybody gets super positive on I'm it super negative on them and when that volatility happens and you've done your full research on the company when you get those dips you buy those dang tips okay exactly what I would do with Tesla my cost based on the public count for Tesla 2:27 I can tell you Tesla was well above 227 when I first started by Nesta but as a dipped dipped dipped dipped I realized this those massive opportunities to love the stock I bought I bought heavier and heavier and I capitalize on that volatility that's something you get in in growth stocks yeah I mean you can get in the stock market in general but specifically with grow stocks you have to take advantage of that volatility and you don't fear the shot going down the short term a lot of people fear it do not fear it beg for it okay beg for it are you retiring tomorrow more likely if you're watching this video you are not retiring tomorrow so whether your account says you know 50 K or 45 K or 55 K does it make that much of a difference you're not retiring tomorrow right and as long as you always have money to funnel in hopefully every month right if as long as you got your income and expenses right then you're always in a position of power and if you always have some sideline cash you're always putting yourself in a position of power so you can take advantage of this volatility right and if you cannot consistently put money in your account each month ask yourself be real with yourself do you have an income problem or an expense problem because if you can't put some kind of money in your account each month you have one of those okay and then you just have to be real with yourself okay I have an income problem I need to get a better job and you store business need to do something that route right or no I have an expense problem I know a lot of people that make a lot of money you never have any money to invest because they spend it all may get lifestyle inflation they can never funnel money in their accounts because I just spend all their money right maybe it's an expense problem you have but that's something so big as long as you always got money to funnel in each month and as long as you always got sideline money you can take cat you and you can take full advantages volatility and buy on dips it's not only me that does this I've seen so many people in my private group and as well as friends you know invest with this philosophy where they buy great companies when they dip dip dip and they are able to make insane gains off those as those stocks come back in you know over time the valuations end up getting reflect in those businesses where they're going a long term and the gains are absolutely substantial that is how I find my next million-dollar stock I hope you guys really enjoy this hope you got immense amount of value please smash the thumbs up button for me doing this really really in-depth video and let me know in the comments if you enjoyed it and also if you're looking to scale your stock market account here you know you got at least 10,000 plus and stock markings trying to scale next level check out the first link in the description down there it's exclusive link for you you can go ahead and apply you actually get on the phone with somebody high up from my team we could talk about where you're trying to go on the stock market where your goals are and potentially products that actually we have out there that could help you tremendously and achieving whatever you're trying to get to in the future because we've been able to do it with so many people now through you know the full systems I go through in my different products so hope you guys really enjoyed this thank you for watching and have a great day [Music]

Channel: Financial Education

Views: 316,982

Rating: 4.9246159 out of 5

Keywords: stock, stock market, stocks, stocks for beginners, stock market for beginners, investing, investing tutorial, tutorial, how to invest, stocks to buy, stocks to watch, best stocks, best stock strategy, financial education, financial education 2, stock market tutorial

Id: TSG-jzZmN0Y

Length: 60min 33sec (3633 seconds)

Published: Tue Jul 21 2020