Investment Analyst Reacts to MORE Investing TikToks

ladies and gentlemen we are back once again this time with a new setup a new background i hope you like it i put out a poll on my youtube channel asking if people would like a third investment analyst reviews investing tick tocks video and i got a resounding sure if you're new to the channel my name is richard coffin i'm an investment analyst and a registered portfolio manager i'm going to take some time today to review some different investing tech talks and i will try to make this educational you know try to provide some points of clarification and you know explain some things further in detail than what you get with these quick videos just to give some clarity around the more gray area stuff so without further ado let's hop into it this is huge news google just announced a 20 for one split for their stock that's bigger than tesla bigger than apple this means that for every one google stock in existence there's now going to be 20 that means that the price is going to go from three thousand dollars all the way down to about 150 a share now in historically in the past whenever a big company has done this what happens is that the price of that stock it goes down because of the split but then it quickly rises back up so i can expect google to double here in the next three to six months now it's one of the biggest opportunities in stock is probably gonna happen this year now for those who missed the the tesla split for those who missed the apple split this is your chance to get it on this stock before it rapidly rapidly rises so i've seen a few videos circulate now talking about stock splits and how you know they lead to this sort of rally in the stock's price and you know initially a stock split is kind of an arbitrary thing right it doesn't really matter how many shares you divide a company's value over at the end of the day the company's value doesn't change it doesn't have any intrinsic impact on the company's value but people do believe that stock splits lead to this you know rally afterwards because it increases accessibility to the stock you have all of a sudden these people who couldn't afford the share beforehand you know google's a three thousand dollar share roughly um now they can afford these shares because you know they don't need to spend three thousand dollars but i think people are blowing out of proportion how material of a change this will be you know it's not like the floodgates are going to open and all these new investors that weren't previously buying google are going to start buying the stock you have to remember that we already have things like fractional shares which basically let people invest as much money as they want to into companies like google so people who wanted to own google already had methods of owning google and probably already did own google and it's not to say that google's not going to see a positive impact there but you know google is a 1.5 trillion dollar company so if we see that company double all thanks to a share split you're effectively seeing that it's going to become larger than the country of canada all thanks to you know an arbitrary accounting change and i know people like to look at apple and tesla which are two examples of companies that did stock splits and then saw their stock price rally afterwards but that's two companies right that's not nearly enough to prove a relationship here and you know if you can't count on your fingers other companies that have seen kind of a stock price rally as a result of a stock split i don't think you should you know believe that that's a statistically significant relationship you know two companies isn't going to cut it for an investment thesis i just found a glitch in the stock market so you want to go to training view pick any stock like amc and choose to hike in ashy candles whenever the candles make a flat bottom like right here you want to get calls and when it makes a flat top get put don't believe me try it out yourself can appreciate his enthusiasm you know he's more excited about this than uh than i am so so this is more technical analysis which was really popular on tick tock where you decide what stocks to buy and sell based on what the price is done and the patterns they're in you know here he's talking about candlesticks and you know when it's flat it's it's a buy or whatever the problem with technicals and especially this kind of oversimplified use of it because i do think that you can use technicals as part of kind of a bigger basket of things technicals in this kind of fashion really are the astrology of finance and and i know that will likely offend some people but there's really no research or or any reason to believe that these things hold any water it really just operates on the idea that things move in patterns but the problem there is that you know people like to superimpose patterns onto data sets where the pattern doesn't actually exist it's just part of the human brain to kind of look for those cognitive shortcuts and identify patterns to make you know processing information easy there's actually a great part in the book a random walk down wall street where the author talks about this experiment where a coin is flipped a bunch of times and a fictional stock price is moved up or down based on the heads or tails result leading to a sort of fake historical price chart that's totally random if you will and the funny thing is is that this chart was handed around to different technical analysts and a lot of people gave very positive kind of reviews and conclusions about this totally randomized price chart that wasn't real and apparently became very upset when they found out that they had been got but just goes to show you know people like to look for patterns and things it doesn't mean they necessarily exist [Music] start with roku [Music] my god [Music] all right we got tesla [Music] okay [Music] all right so obviously not the best performing portfolio but i do think that you should judge someone's merit off of not only kind of the long-term price performance of their position so you know here we're only focusing on the short term but also on the merit or the work they put into the analysis in the supporting research and that's something you really don't see on tik-tok you see all these you know focusing on the picks that people did very little focus on the research they did to you know come to that conclusion it's just oh i knew what i was doing so i picked this stock i think that's a really easy way to sift through the bad research or the bad stock picks out there is to just ask you know what is the supporting research there and is it enough to get a passing grade for a high school assignment and if the answer is no you know if someone's only giving you very high level industry information or basic stuff about the company that you know then it's obviously not worth investing into in this case it does kind of seem like this guy just bought a bunch of hyped positions put them into a portfolio and hope that it would turn out well and make him look like a genius and suffer the consequences of doing just that max out your 401k could be the dumbest advice that i've ever heard for anyone that wants to take financial control of their future why chris it's free money you do max contribution and the company matches you it's awesome like are you kidding me first of all i give you my money and i'm never gonna see it for decades like why would i give that to you even if you're matching it it's not real it's fake funny money i can't use it i can't invest it i can't do anything with it and it's on the roller coaster of the stock market which means that i'm gonna be averaging three four percent on my money and by the way just so you know when inflation is three percent which is what your the the value of your dollar is losing every year and you're gaining four percent four minus three means that you're netting one percent let that compound over you know the next 30 years and you're going to be happy with it turning into a pile of nothing poof [Music] have something it's uh it's not often you have someone so aggressively wrong about something so first of all he seems to be anti-stock market he only talks about earning three to four percent which is kind of weird because you know historically the s p 500 has achieved an average of roughly 10 over the long term so that's kind of a low ballpark to to assume that you'll get from stock investing now there are some valid criticisms of the 401k on the one hand you can't really access your money until you retire unless you meet certain circumstances and secondly from my understanding given that you know i'm canadian it sounds like your employer decides what your investment options within that account is and most of the time you just end up having a short list of certain mutual funds to invest in so you might not necessarily be able to invest that money that's in that account in the investments you want to but there are benefits to the 401k you know on the one hand not only do you get a tax refund for money that you contribute to the account but it gets to grow in the account tax deferred right so that means more compounding it means that overall your money will grow faster than if it was outside the account and if your employer is matching your contributions really that's a free immediate 100 return on the money you put into your account so i i really don't get i don't i don't get i don't i don't get it i know i guess i guess it's just about saying stuff confidently enough right that's that's my problem i'm too tired i gotta find a balance between belittling my audience and that fortnight streamer voice from earlier i just found a glitch in the stock market hey guys what's up i can't do it [Music] obviously they left out the most promising nft collection of all the bagel book collection which is live now on the planebagel.com if you want to go buy a bagel butt just kidding it's a gig i don't have a lot to add to nfts okay so you want to invest when you're 15 but you don't know how yeah actually okay well you're going to want to open up a custodial account what does that do this allows you to invest under your parents okay where should i go to do this td ameritrade thanks taylor so no inherently bad information and this person's actually put out a few tick tocks i've seen and i think you know she focuses on pretty basic stuff nothing offensive in that regard but what i will say is that if you're a kid if you're 15 years old there's really more important things to focus on than investing uh you know when you're that young you obviously don't have that much money to invest in the stock market you're more likely to get a much better return for your effort on things like focusing on your education on getting a good job and you know getting a good salary or you know sure if you want to start a business or whatever it is focusing on the actual income generation than just getting investment returns when you don't have any money now if you want to focus on money management early that's that's great and i think you know no one would argue that it's a bad time to focus on spending habits and invest in your money that's all fine and dandy but especially if you start to look into stock research and stuff it's really too early for that kind of thing and you know there's passive investing sure but when it comes to stock picking you do have to be educated you know you have to have a solid accounting background you have to understand markets in the economy and all these factors which at that age you just probably don't have that good of a grasp on and if you can't tell me about you know depreciation working capital how taxes work and just you know fundamental stuff like that then you're far from at a point where you should be doing your own research it's not to gatekeep it's just to set expectations right you shouldn't be researching and buying your own stocks if you don't know the fundamentals it's just that simple bro wake up oh my god that laugh bro wake up okay i'm sorry let's uh let's continue there's one way that people got rich for decades and you know damn well that it wasn't from a college degree man the same way that i got this billion dollar view and you haven't even started yet come on let me guess bro you don't know what to invest a lot of emojis you know maybe you should have gone to college you know what a diploma looks like so we're ending on a strong one but i will say obviously everyone should strive to invest i think that's pretty sound advice that you should try to get to a point where you're able to invest but you know not for these reasons that's really not the point of investing you know so the fact that the richest people in the world got there through you know creating businesses and starting ventures not you know through robin hood day trading but you know outside of that the people who have actually made it who actually have this type of wealth they aren't like this no one acts like this you know having worked their way to the sort of positions the people who act like this are salesmen you know this is a sales tactic it's trying to make you feel bad feel uncomfortable and they're giving you a solution in this case this guy has a course where he'll show you how to get this billion dollar view [Music] so yes you should learn about investing you should learn about managing your money but not from this guy everyone has their own pace everyone has their own risk tolerance and you shouldn't be made to feel bad about the type of investing you do i you know just make sure that you're doing the best you can and trying to be diligent with your money it's your life savings if you need help you can reach out to a professional not someone on tick tock who's you know selling a course and i don't think i really even have to say this stuff because i think it's pretty obvious it's pretty brutal so this has been investing analysts reviews investing tick tocks part 3. i hope you enjoyed it i hope you maybe learned something and if you did please do make sure to like subscribe and all that good stuff it really does help the channel tremendously i don't know if i'll do many other videos like this they're actually cracking down on on finance tick tock videos which thank god but i'd be interested to hear your thoughts in the comments down below what what you thought of this and what your thoughts were on the different tick tocks we reviewed today and what your takeaways were thank you for joining me today and as always be safe out there

Channel: The Plain Bagel

Views: 453,713

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Id: YotlEEBZKlk

Length: 14min 6sec (846 seconds)

Published: Fri Apr 29 2022