Millionaire Invested $100 & Made $_____ (How to Invest For Beginners - Episode 2)

hi guys it's mark a lot of you really enjoyed the last video i made where i invested a hundred dollars in lots of different ways and today it's finally time to share the results and break down how much money i made there's also a bit of a twist because i've invited a guy called tomrad who's never invested in his life he doesn't have a job right now and he's been finding things really a little bit tough while he thinks he's coming around for a simple how to invest for beginners tutorial i've got a surprise planned for him i'm actually going to give him some money to jump start his investing journey as i would really have appreciated that at his age if you like this idea and you want me to do it with more people then make sure to smash that like button to let me know i'm really excited for this one i can't wait to see his face he'd be arriving any minute now so we're here with tom how are you i'm not too bad yeah a very difficult time at the minute you know i've been looking for a new career path and a new job i know you've spoken a little bit about it being interested in investing yeah i am very interested but i don't know that much about it actually i mean i've been watching a lot of your videos my friends have been watching a lot of your videos and they've actually started investing so i'd like to give it a try well that's good well that's good to know because that's what we're trying to push out to get young people investing early so tom we've made a video recently where i invested a hundred dollars into lots of different investments and during this video we're going to see how those investments went should we dive straight in definitely let's do it so this is the first investment this is a high interest savings account and we invested a hundred dollars and at the moment that's had a return of 0.004 and the reason it's lower than when we started is because they lowered the interest rate so our profit is four cents four cents that doesn't seem like a lot why would i invest in that so this investment isn't about the interest you're going to gain because nowadays it's really really hard to find a really high interest savings account the real reason one of these is so valuable is because you can use it as a backup fund and you should have in there around about four to five months of your living expenses why would i need that well the reason is is because if you have an emergency in your life i mean you might have a flat tire on the car or the engine in the car might blow up whatever the reason you've got the cash to hand to be able to sort that problem out immediately without having to go and borrow the money which is going to cost you a high amount of interest so basically it's not about the money you make it's about the money you save you've got it something a lot of people don't know but 78 of americans live paycheck to paycheck so by doing this you're already ahead of a lot of people well that's where i want to be the second investment we made was into gold oh i love a bit of gold well we all like a bit of gold and we invested a hundred dollars into this um the return on this was minus 0.98 which means we lost 98 cents so why would i invest in something that loses money because it protects you against inflation what's inflation well think of it this way this dollar has actually lost 95 percent of its value since 1913 and that's why your grandma and your grandparents always say they could buy so much more with their money when they were younger well that makes sense but how does that link to gold well that's actually an easy one because as your dollar loses value gold generally goes up in value so by investing your dollar in gold you're keeping it a lot safer well how come you lost money well because the gold market always fluctuates so gold basically moves in the opposite way to inflation as inflation goes up the price of gold goes up i never really thought about it like that do you just buy blocks of gold well you can do that but i prefer to invest into etfs and etcs which means you can buy and sell gold much much easier so what's an etf an etf is an exchange-traded fund which means they hold the gold for you you don't have to physically hold it and put in a safe or anything like that they store it all over the world and there are billions stored up and you can actually buy and trade it on the stock market well that's interesting i didn't know you could do that so just to finish this section off gold is a very very rare thing you can't make any more of it well you can but it's too expensive to make it so you wouldn't so it won't lose value the same way that money will unless of course elon musk finds a great big media that's full of gold of course and he might do that investment number three was an s p 500 index fund and we invested again a hundred dollars our return was 1.84 which gave us a profit of 1.84 well that's a good profit but what's an index fund owning a stock is like owning one cow whereas owning an index fund is like having the whole herd so imagine if you own just that one cow and it dies you're out of milk but if you own a small piece of all the herd and if one dies it really doesn't affect you for example what we chose is the s p 500 which is the 500 top companies in the usa such as amazon apple and now even tesla so i can invest in all these companies in one go yeah you certainly can and the fees are really low because it's passively managed they don't have experts managing all the different stocks and pretty low risk because it's diversified over all these different companies so i'm not gonna lie mark but you're only making a profit of one dollar why should i care well the thing here is that 1.84 is only over a month and a half and if you actually invested a hundred dollars at eight percent growth per year over 45 years you would have over half a million dollars in your account that sounds amazing and you know what that hundred dollars a month can just be by having a few less coffees from starbucks or doing a side hustle it's easily found and invested into an index fund every month investment number four in a reit and that stands for real estate investment trust and we've invested again a hundred dollars our value has actually dropped by 0.4 which is a bit of a pain but we did get a dividend which is really cool of 57 cents which means we are actually in profit by 11 cents so what's a reit so imagine you've gone around and you've borrowed lots of money from all your friends and you've got enough now to go buy a property and you rent it out and of course because you're a nice guy you split all that rent with your friends so that dividend is that share of the rent yeah that's spot on and it's from things like offices hotels things like that that are owned by commercial companies and because they have to sign such long leases it's a really secure income so this is how i can get into real estate without buying a property yeah think of it a bit like um you know i own the front door you might own a window your other mates might own half a dozen bricks so you all own a little bit of it and then get paid the rent in return i've always wanted to go into property so this could be my way in investment number five is sort of my bread and butter it's business buying and selling and i actually did some research and found a model engine that was underpriced which i then sold on ebay and also the guy gave me a model aeroplane as well which i sold so we made a profit of 67.87 why is the risk level of 4 out of 10. well this relies on your knowledge of the things that you're buying and selling because if you can find the right things you can make money from i'm really into star wars well star wars toys are worth quite a lot of money and if they're in their packets you could earn a fortune from them all right you piqued my interest where would i look for these things well facebook marketplace is great and also ebay and i often look for missed type titles and that way you can get yourself a bargain and sometimes people don't photograph the things very well so they're going to go for a lower price better get myself a bargain then and the great thing with this is you can repeat the process over and over again one guy went from a paper clip to an entire house investment number six is samsung individual stock and we chose this stock by having a dart board on the wall and we had 20 randomly selected companies around it and we landed on samsung so this was a completely random investment yeah and as you can see from a hundred dollars we've actually made a return of 19.4 which is actually 19.43 wow so that's with a risk level of 6.5 yep so the higher the risk the higher the reward would you say luck was involved in your dart throw it was lucky i hit the board not only blindfolded i didn't have any glasses on either so it's a absolute wonder of course luck and timing is always a critical part of stock investing of course you can do it without throwing a dart on the board because you can do fundamental analysis what's fundamental analysis so that's when you look at the financial statements and balance sheets and also the leader of the company and this can all be found on yahoo finance if you're interested so what's the best way to get started well if you deposit 100 on weibull they'll give you four free stocks at the moment i'll leave the link below and for you tom i'm going to leave a link for trading two one two if you want to pick up a free stock that's fine if you're in the uk or europe free stock for nothing count me in investment seven is crypto and we decided to invest in bitcoin we invested 100 as before and we got a return of plus 98 so in a month we've made nearly 100 of our money back that's amazing so are these actual coins no they're not actual coins but they're digital coins the great thing with bitcoin is it's decentralized so it's not actually controlled by any government and this puts some people at ease because the banks can't control their money so can i spend this bitcoin yes and more and more businesses are actually accepting bitcoin now and the more that do the more the value goes up and remember this dollar it's just losing its value because they're just printing more and more and that won't happen with bitcoin because there's a limited supply but i heard about bitcoin they're making them all the time well actually they're just mining them and they're finding all the little bits that are out there and once they're all found and they're all mined that's it there's no more and that'll probably happen in the 22nd century so that's quite a long time to wait should be fine but one of the problems with bitcoin of course is very volatile so its value is going up and down all the time on the 17th of december 2017 one bitcoin was worth over 20 000 but days later on the 24th it was worth under 14 000. so it's a win or lose situation yeah i'd say so for anyone who wants to get started i'll leave a link down below where you can get ten dollars of free bitcoin so investment number eight was actually to be fair at gamble it was lotto scratch cards we invested a hundred dollars and our return was minus fifty percent which meant we lost fifty dollars so why would i want to invest in lotto scratch cards you wouldn't that's the point so of course it is the highest risk it's we've given it a 10 but you could win big and that's what makes it exciting and that's why people do it yeah i don't think i'll take a risk like that well you say that but 50 of americans do this every year and that's a sad thing so the grand total is 108 profit which is 11 growth over a month and a half what do you think about that i think that's pretty amazing considering one of them was a lucky dart shot yeah it's not bad at all really and 10 is considered average for a year's growth so i think we did pretty well me too so i have a challenge for you i invested a hundred dollars in eight different areas which is eight hundred dollars i'm going to give you 800 right now to invest in your three top choices of what we've invested in so see if you can beat what we've done seriously you've got 800 what are you going to do with it i've got to start investing you can split the money however you want but at the end of the month you get to keep the entire amount 100 of the investments wow that's amazing i've always wanted to invest so this is a great opportunity for me that's what we want everyone to do we want everyone to be out there investing and getting ahead in life so what you're going to invest in i'd like to take a quick look at all the investments we just talked about if you're already that's absolutely perfect i'd say that's the best thing to do so here they all are here perfect so while he's picking his investments why don't you put your top three down in the comments below i read all of them and i'd love to see what your choices are uh that's a no from me because it's low profit okay gold that's a loss so that's a no from me okay s p 500 index fund well it seems like it gets a good percentage and it's probably the safest option i think they'll go with that definitely okay how much do you want to invest in that i think i'll put 200. so we're going to go straight on to trading two one two we're going to go to one of the links in my video and we can get you a free share as well how good's that so now we're going to go on to the s p 500 do you want to type that in smp oh that's the first one yeah okay so it's a vanguard s p 500 etf so we're going to put into that 200 so now we're going gonna buy there we go so now you own a share in the 500 of the top u.s companies just like that that's amazing so you go off to your mates and tell them you own amazon facebook you name it then we've got investment for which is the reit now looking at this it's definitely a no for me because it's low profit okay business buying and selling it's got the biggest profit and if it was a different time i probably would be doing this one or it would be my fourth option if i got it well to be fair i was quite lucky with that and i do know the subject very well so i did get a particularly high return the individual stock on this you don't have to buy samsung stock you can buy any stock on the entire stock market oh well that's good so i might even find something that gives me a higher percentage you may well do definitely going to go for that one i think i might put actually 400 in there you might be on track to beat me with that one so we've got all these stocks available to you tom so which ones have you got a feeling towards uh i definitely like the look of tesla and google so we're going to go on to tesla so we click on buy so how much do you want to invest in tesla uh i'm going to split in half so i'm going to put 200 in there you want to do the honours boom you now own part of tesla how about that that's amazing and you said google google yes so do you want to hit the button yep that's another 200 into google look at that you own part of google as easy as that the next one is bitcoin crypto i like the look of this one this one probably has the highest profit but it also has the highest risk level yeah but it's exciting it is very exciting so i think i will take my chance in it okay tommy so whip out your phone and we can go on to coinbase and we can take advantage of that ten dollars worth of free bitcoin so how's it feel spending all this money on bitcoin it's great and i'm hoping i'm going to make a bigger profit bye now let's go for it it's submitted done it high five high five i'm going to leave the next video down there don't click on it just yet consider subscribing to the channel if you want to grow your wealth ring that whole notification bell and don't forget to smash that like button okay i'll see you on the other side

Channel: Mark Tilbury

Views: 649,823

Rating: 4.9499073 out of 5

Keywords: investing for beginners with little money, beginner investor to millionaire, investing 101, investing for beginners guide, how to start investing with little money, how to invest for beginners with little money, how do i start investing with little money, how to invest small amounts of money, vanguard index funds, how to start investing in stock market for beginners australia, investing for beginners with $100, investing for beginners, how to invest, passive income

Id: 2_ELnXpDB5U

Length: 14min 34sec (874 seconds)

Published: Thu Dec 24 2020