Did you know that half of the US millennial
millionaires (44 percent) live in a single state - California? The question that you
probably have in mind is - do they move to California after becoming millionaires or
before? But when you look at what's happening, the
answer is clear. Silicon Valley is the center of innovation and startups, so it's not surprising
that young talented people move to California to compete for the most lucrative jobs in
tech. Software engineers easily make a few hundred thousand dollars here. But that's
not what makes them millionaires. Most companies use stock options to pay employees.
If you are a talented employee and you work for Google, for example. They don't want to
lose you! At the core of innovation and progress is the human mind. So the best way to keep
you working for them is to simply pay you with stock option. You will receive a certain
amount of stocks if you work for the company for 3,5 or 10 years.
A year passes or 2, and you want to change your job and work for Zuck because he changed
the name of the company to Meta. You can't! Because if you leave, your options are going
to expire, you have to stay till the end of your contract to use that option.
That's primarily what makes them millionaires. In fact, when companies pay their employees
with stocks, they are tax-deductible, so everyone benefits. The company creates these stocks
out of thin air. They are tax-deductible, and they are worth a lot of money which makes
these talented people millionaires. It's a win-win situation.
But it's not unusual for wealth to accumulate in one city or state or in the hands a small
group of people. 43.4% of the world's wealth is controlled by the top 1%. The Pareto principle
is visible everywhere. But what we want to focus on in this video
is, what are the investments you have to make to be in the top 1 percent? What industries
are going to dominate the future? And where should you invest to never work again?
We will answer all of these questions and many more. But before we do that, give this
video a thumbs up, and here is a little disclaimer. This is not financial advice and everything
that's said in this video is for educational and entertainment purposes.
Climate tech
In the late 19th century, oil, as we know it, was discovered and it has literally shaped
the world since then. It led to the invention of automobiles, cars, planes, and rockets.
It led to the biggest infrastructure project in the history of the US (highways) that shaped
the entire country. In fact, if you go back 100 years ago, oil was the commodity that
created America's first billionaire and the world richest person.
Young John Rockefeller realized the importance of this commodity and quickly started building
his empire, where he literally created a monopoly in the country. His personal wealth grew in 1913
to $900 million, which was almost 3% of the US GDP. 3 percent of US GDP today is 630 billion
dollars, which means back then, he was wealthier than Elon Musk, and Jeff Bezos combined.
That's why his empire was broken into 34 different companies. These companies still exist today
and are leading the industry. This industry has also shaped the geopolitics of the world,
where it made middle eastern monarchies enormously rich. Aramco, which is a state-owned Saudi
company that controls the oil in the country, is valued at over 2 trillion dollars, and
a few years ago, it was the world's most valuable company. However, the end of oil is coming.
Wendover Production has a great video on this, which you should definitely check out. ( https://redirect.is/ktq1c2t )
Despite the fact that there is still a lot of oil left, in 2019, it has reached it's
peak. The trend is now downward. Oil is going to be more and more expensive to extract which
means oil prices are going to keep either rising or oil companies simple wouldn't be
able to turn a profit. Which means the demand for renewable energy is only going to rise.
On top of that, climate change is a problem that dangers the entire future of humanity.
These 2 factors are fuelling the climate tech industry. As oil has dominated the last 150
years, renewable tech is going to shape the next hundred years.
Just in 2021, Climate tech start-ups have raised a record $32 billion globally so far.
This number is only going to increase every year. So, if you want to make an investment
and be sure that it's only going to grow, invest in this industry.
2. Health care
What happened in 2020 wasn't surprising. If
you take a look at the history, pandemics has been happening throughout history and
the most recent one happened in 1918. It was absolutely devastating. But in the last 100
years, as tech began to grow so rapidly, life expectancy began to rise as well. We realized
that if we take better care of ourselves, we can easily live 80, 90, or even 100 years.
If over 100 years ago, you would be lucky to live past the 50, now life starts at 50,
and 2020 was a warning that if we stop focusing on our health, everything we have built could
be destroyed in a glimpse of an eye. But that's just one side of the story. The other is that,
we can create technologies that can expand our life span. For a long time, mRNA, for
example, was considered as a hoax. But Moderna came in and created the first mRNA vaccine
where you don't need to inject the actual virus but enough to use it to create similar
cells. With this technology, we can create drugs faster, better and cheaper.
Anyone who has invested in Moderna has made massive gains since then. However, biotech
companies are just emerging. You have Vertex, Roche, Pfizer. Of course, it's risky to make
a single bet of any of these companies but you can try vanguard health care ETF (VHT).
It literally holds stocks of the most prominent biotech companies such as Pfizer, Johnson
& Johnson, and the rest.
3. VTI When people recommend an ETF, they usually
talk about the S&P500, but it's not the only ETF out there. S&p500 companies are great,
but they are not the only companies in the country. As of 2019, there has been 32.5 million
businesses in the US, and thousands of them are listed in the stock market. So you want
to benefit from not just the top 500 companies but the entire economy. Even Tesla just recently
joined the s&p500, and there are plenty of great companies that are not on the s&p500.
The VTI ETF aims to replicate the composition of the US equity market, providing a broadly
diversified and low-turnover portfolio for a cheap fee. It captures the entire investable
U.S. equity market. It has a very low fee which makes it great for long-term investments.
It's one of my favorite ETFs. 4. REITs
I have been in real estate since I was a teenager. It's one of the industries that I absolutely
love, especially for the fact that it provides stable cash flow. You have total control over
it, and it keeps sending you paycheques. Of course, it requires some level of management
but it's manageable to a certain extend. However, not everyone enjoys that. A property means
constant problems. You have to find tenants. Something breaks down, you have to fix it,
you have to pay taxes, renovate it, and a million other thing. It's really time-consuming.
What makes real estate so social is that real estate prices keep rising. Even if they crash,
they will eventually bounce back. Take the biggest real estate crash of 2008. Prices
haven't just jumped back to where they have been but have risen significantly since then.
So how do you invest in real estate without actually buying any property?
The answer is REITs! REITs are businesses that own and manage properties,
and they are traded in the stock market. So by investing in a REIT, you are investing
in real estate indirectly. But what I like the most is that there are REIT ETFs like
VNQ that invest in multiple REITs.
5. Online Education With the rise of the internet. Education has
become widely accessible, especially with places like Khan Academy, Skillshare and others.
We should have moved to online education long ago, but we didn't. So 2020 pushed the entire
world to move to online education, and it seems like this industry is going to explode
in the next decade or so. Today you can literally access any information
on the internet, learn anything from YouTube and master any skill from your favorite blogger.
There are multiple ways to invest in this sector. Of course, you have traditional means
such as eduction companies that are listed on the stock market or ETFs that are focused
on this industry. You can even get into this industry on your own if you are good enough
at something. But I prefer startups in this industry because
it's growing too fast and it has a huge potential. I am almost sure that 20 years from now, education
is going to look entirely different with all of these new tools we have, such as VR.
But If you want to experience online education now, then check out my course on Skillshare
that will teach you everything you need to know about the stock market to start investing.
It's simple, straightforward and fully animated. I have literally answered almost all of the
questions you have in your mind. I strongly recommend it if you are serious about investing.
It will not just teach you how to invest in index funds but teach you how to analyze stocks
and read financial statements, and at the end of the course, you will have to complete
an assignment that I will personally check, and the best part of it is that you can get
2 weeks of Skillshare premium if you use the link in the description and get the course
for free. So don't miss it. You can also start your investing journey
by getting 2 free stocks from we bull by using the link in the description.
You have everything you need to start.
If you have enjoyed this video, you will most
definitely enjoy this custom playlist that I have created specifically for you that has
our most popular videos on .... that can potentially change your life.
And now give this video the thumbs up that it deserves, and make sure to subscribe if
you haven't done that yet. Thanks for watching and until next.
