Investment Lessons

hi i'm matthew schimelow welcome to the wealth master class where we teach you to make manage and multiply money every waking day the rules of our cities are jammed with people who are driving to work it is almost safe to assume that close to eighty percent of every nation have nine to five people people who just walk in the wake of the morning rush to walk come back home have some food wait what television go to bed wake up in the morning rush to walk come back home have some food what television go to bed the ritual continues but then suddenly one turns 65 and he's retired and in fact into this world you are downsized right-sized uh outsource and so you lose your job even before you are 65. today i would like to share with you on investment lessons that you should learn investment lessons you see if you don't invest it means an effect that the money that came through your hand just went into expenses and maybe little was saved and saving is not investing investing is what compounds your money investing is your launch pad to greatness investing is your way of making good the money that came into your hand so what do you do today we're looking at certain steps in your beginning when you start to invest and you need to you don't have to have millions before you can invest number one recognize this the risk and returns go hand in hand the lower the risk the lower the return the higher the risk the higher the return if you want your money to be safe you can keep it in a savings account but you get almost nothing in most economies now the interest on the money is nothing to write home but you've got to realize also that the higher the risk the higher the return and nobody wants to lose money however without risk you can't gain if you buy stocks and shares the shares could go down you could buy bitcoin and it goes down just that we have seen in this 2001 within a short time it went so high as high as 63 uh thousand dollars to a bitcoin and then boom came back down to just over thirty thousand dollars that is a high loss of over fifty percent however the person who bought the same uh bitcoin for five thousand dollars is still smiling that he has a 30 000 bitcoin because if he had kept us in five thousand dollars in his savings account there wouldn't have been any much additional value investment is a necessity for you for your children for your future investment is a necessity for the times when your bones are tired and you have something to live on it is bigger than just pension which is already predictable and that you drop from number two diversification is paramount and your lesson on investment what does this mean that is investing in different areas so that you did not put your money in one thing you diversify in order to grow your money you put in real estate you put in share stocks you put in treasury bills to grow the money to compound it it was albert einstein we said one of the greatest misery mysteries of life is the mystery of compounded interest what a truth thirdly you gotta realize that investment costs but nonetheless you should be ready to pay the fees don't do it yourself you smart people who know how to advise you on stocks shares use brokers use people who can advise you on real estate because they know the patch they've been there they've handled the rough times and the good times it is part of the cost but it is also what will eventually deliver your benefit then in investment have a margin of safety in other words if they are selling a property for five thousand dollars see how you can get it if it is worth five thousand dollars in the property market see how you can get it for four thousand seven hundred so you have imagine from day one of some degree of equity profit not buying at the actual amount not when it was overpriced because if you buy at a time when it was overpriced if there is a crash you will have to wait particularly in the world of real estate you will have to wait till forever you have to wait for a long time because you see reverse compounding can be a problem if suddenly begins to go down so always look for imagine that helps you and gives you some degree of cushioning while you are waiting for your investment to rise next truth is some degree of risk management you need to have a risk management system in place i bought this real estate i'm expecting this level of rent if the rent didn't come and i need to fix the shingles the broken window what do i do so you have a risk management system in place if anyone tells you everything will always be perfect they lied to you we live in a world of so many unpredict unpredictabilities we live in a world of probabilities so have a risk management system in place if you put your money in stocks and shares the company's director can do a booga booger and mess up things and make the shares go down someone can make a comment elon musk made a comment about bitcoin and the next day it went up another time he came again and said oh the amount of power required for mining bitcoin is too high we will not be taking bitcoin anymore it went down again you need to have a degree of a risk management system in place volatility you need to realize if what you want to buy is volatile check your own emotion you can't control some things when the volatile seasons come so maybe if you find that your risk tolerance for for the uh for e-coins is limited maybe not to put much money there if your risk level for real estate is very high maybe that's where to put your majority money and then the remaining in other areas stock shares real estate investment trusts but do invest if you don't compound what is in your hand it will remain the same did you know that if you took 40 thousand forty dollars and put every month in s p 500 and you did it for 30 to 40 years just 40 dollars a month in a whole year that is 480 dollars stands for it 40 years doesn't sound like much but did you know that if you went up for 40 years because it is able to return between 10 and 14 percent interest in the various companies that are in the smp it eventually will be over 2 million dollars what are we saying you took forty dollars on behalf of this your son whom you gave birth to today or your daughter and you thought okay by the time i'm retiring i want to be able to have something i'll give my son or daughter or i'm just starting work i'm 20 years old i began to put forty dollars every month forty dollars every month forty dollars every month by the time you're sixty when your pension is guaranteed you have a million dollars that simple 40 dollars you saved from not eating out too many times have become over 2 million dollars because of compounded interest because of the 10 return on s p 500 so somebody may sit down and say well i don't want to do that they missed they didn't realize delayed gratification is a sign of maturity then you must learn to control your destiny how do you control your destiny no one is interested in your finance not your employer not even the people who are handling your pension so you've got to protect what you have not governments at least not 21st century governments i do not know of any nation right now maybe china alone that have not borrowed the money of generations to come america have spent the money of five generations my controllable regional birth have borrowed close to 40 trillion nigerian naira so all over the world nations have borrowed so they don't have the interest of your children or yourself at heart you have to watch over yourself by controlling your destiny through investments then don't take it personal sometimes some investment may favor sometimes they may go down do not fall apart just realize that look in taking risks some things work the way you expected sometimes they don't but investing and seeing their returns can really bring you a lot of joy they never give up keep watching business news know the market trends know the area of your city where real estate is going up if it is in nations where you can buy land and keep your land holding and have your documents do so if it's in nations where you can buy properties particularly the ones young people want to rent buy and rent out the rent may bring you some degree of equity but the biggest will be as the property rises in value so you have two triple edge profit from your investment the property is rising the rent is above the amount you're having to pay your mortgages because because you see in investment you need to use opm sometimes other people's money not borrowing money to buy shares but at least borrowing money to probably buy real estate which you know that okay there is an equity the borrower can use to clear out the money they loaned you but you've got to realize if you don't invest you keep yourself at a limited level then you've got to learn to separate your social life from your investments do not invest make money because you want to buy the latest car the biggest this the latest designer clothes don't do designer clothes for everyone to see get yourself into investment create a future delay your gratification if you used to drink three boxes of of juice change it to one take two take the money out two put an investment i close this by telling the story of what happened when a king in the bible called the pharaoh dreamt and saw seven cows fat and seven cows thin and he didn't know what to do and joseph the man with a quote of many colors told him the seven fat cows are your productivity are like productive years and the 17 cows are the lean years all of us have productive years and lean years here's when you are active and strong and the fronts are flowing and the years when there is nothing left and you will have to depend on the productive years or you go a begging what do you do you told them just 20 from the productive years every year 20 from every income every food and store the way will take care of the lean years that's what investment does but even then it takes care of more than the lean years breaks your family from the cycle of lack and poverty and starts a new generation of wealth i do hope to this teaching has helped you to learn about investment we'll continue our teaching of investment in another episode but make sure you if you have enjoyed this video like it invite other people to the wealth master class god bless you

Channel: Wealth MasterClass

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Length: 13min 50sec (830 seconds)

Published: Tue Jul 13 2021