Stocks 101 for Beginners - How to do Stock Analysis

the stock market is overvalued anyway you look at it market watch January 2015 rising anxiety that stocks are overpriced the New York Times August 2015 fears grow over US stock market bubble price Financial Times September 2015 do not expect the growth of recent years to continue Kiplinger January 2016 the Federal Reserve says US stocks are overpriced Fortune magazine June 2016 guys it is now 2019 and it would take a stock market collapse of 37% exactly like the one we had in 2008 for all of our stock portfolios to go back to their 2015 levels when all of these articles were written so I guess that means the media was wrong welcome to stock market analytics for beginners [Music] hey what's up guys Andre here and let's dive right into it with one of my most requested videos on this channel and that is stock market analytics for beginners now if there's one thing I want you guys to take away from watching all of my videos it would be this one hopefully by the end of this video you will be a more confident investor and all you have to do is watch this video all the way until the very end and of course gently tap the like button please don't everybody rush to the button all at once also wearing a tie makes me feel like I'm being slowly choked to death by a baby it's weird I hate it don't like it but I do like being extra sometimes so let's continue the strategy is simple we're gonna buy and hold long term so that we can collect monthly income by buying blue-chip dividend-paying companies that pay us every single month to just sleep and do nothing and we're gonna do that while ignoring all of that media noise and all of that media frenzy telling us what to do and scaring us away from investing now you guys can use any brokerage for this whether it's m1 finance or weeble or Robin Hood doesn't matter I use Robin Hood and with this strategy I was able to build a six-figure portfolio that's paying me roughly $550 a month or 4% with a dividend growth rate of 5.6% per year that's way outpacing inflation which I'm happy about and of course all I have to do is sleep and do nothing but since I'm editing these videos until 4:00 a.m. I don't sleep so it kind of balances itself out now I started this journey when I was about 22 years old and at the time I was getting paid about $14 per hour and I saved and I eventually built a portfolio that is worth roughly a hundred eighty six thousand dollars which is up five thousand dollars from April and it's up nearly fifty nine thousand dollars from all time which is pretty incredible so if I can do it I think anyone can do it if anyone is interested about how I got there I made a video about that as well so no fluff on this video let's dive right into the most important metric of all and that is the macroeconomic analytics guys this can't get more fun other than dry macroeconomic analytics this is what you asked for this is what you get I'm gonna try not to put everyone to sleep with this information by breaking it up with my lame humor and jokes and yeah I guess let's just dive right in alright so if you didn't know this past May marked the second worst performing month since the 1960s for the US stock market that's right but then in June just last month from making this video that June rose 17% for the S&P 500 making it the best performing month of June since 1997 which coincidentally was the year that I came to America I was just nine years old and that year was also the first year that Pokemon aired on television for the US better times am i right so why is any of this important well it's important because investors like myself have had a lot of good reasons to exit the market in fact you could make a really good case for why you should be afraid right now I got texts from my friends in December 2018 saying I hope you pulled out man that dip it's this is the crash it's coming but they too were wrong had I listened to them had I gave in to my fear I would have missed on nearly 30,000 dollars of gains you can see from December 2018 you could see how that curve just goes straight up and I gained $30,000 my portfolio dipped all the way down to $150,000 and that's not even counting the dividends that were paid to me every single month that I reinvested back but instead I held on during December 2018 all the way till now and that's how my stocks were able to go back up but there were signs of slow economic growth there were signs of trade tensions and uncertainties and the scary yield curve inversion that no one talks about and the last thing is high market valuations however if the last six months have shown us anything it is that it's important to continue to stay the course I want you to continue no matter what the stock market conditions are in fact I want to show you a piece of research that I found that I think is one of the most important things to know about if you're an investor in the stock market and I want to share this with as many people as possible because I get a lot of comments and questions asking Andre what's gonna happen when the stock market collapses they're gonna stop paying your dividends your money is gonna be gone what then idiot oh this next one comes from simply safe dividends there's a book called zebra in Lion country by Ralph Wenger sorry it's hard to say his last name on camera when you're trying to be serious so sorry I'm I'm I'm a mature young adult I'm not laughs and his last name let's continue so he cited a University of Michigan study that between the years of 1969 and 1993 there was roughly a 90 day period which accounts for 1% of the entirety between those two years where that had the best stock market gains and if you were outside of that three-month period you would have missed out on the best stock market gains within nearly 30 years of investing but it gets worse way worse because Wenger referenced an additional study that found that if you were outside of the market for just 7% of the time between 1926 all the way till 1990 you would have earned absolutely nothing from 64 years of investing can you guys imagine that's an entire person's lifetime in that era if you started in 1926 which coincidentally was the year that Harry Houdini died at the age of 52 which is coincidentally how many cards there are in a deck of cards random useless facts and if you had started investing in 1926 and you weren't around for that crucial four and a half year period during the stock market's rise you would have made absolutely nothing all because you where that guy but be honest with yourself have you ever been that guy because if I'm honest with myself I know I have that's normal that's being human it's okay to be afraid so what can we extrapolate from this research well we can make the case that doing nothing and just staying in the market by way of inactivity was the best thing to do inactivity was the greatest ally in 64 years of investing not rebalancing not selling off not waiting to buy the dip just nothing sleeping and waiting to get paid but what if you were starting today and you wanted to build a stock portfolio perhaps like mine right now what would you do well I can tell you this much the US stock market is not going to continue to grow at double-digit growth rates forever like we are right now that's just unsustainable a healthy US stock market should be growing at roughly 7% per year which also accounting for inflation 2% per year that's a healthy stock market so like Bob Ross would say we're in the good times now so should you invest today or should you be scared well I'm gonna let you in on a little secret and I don't want your money I don't want to sell you anything I want to sell you on a course but here it is yes yes you absolutely should invest today right away the risk of losing money quickly goes away the longer you stay in the stock market but don't take some random youtubers word for it please I'm gonna show you some data and research that backs that up as well this one is from visual capitalists check it out so these charts show yearly returns from 1872 to 2018 which is a period of 146 years over 1 5 10 and 20 year continuous periods now we can't base future results on past results but one thing is clear in all of these charts and that is that the S&P 500 has never had a negative return over a 20-year continuous period additionally these charts show reinvestment of dividends that are adjusted for inflation but the best part is that you and I don't have to be experts at picking stocks in fact rather than focusing your energy your money and time on trying to figure out what's gonna perform better Apple or Tesla next year who cares we don't know what's gonna happen focus your attention on growing a well built and diversified dividend portfolio that pays growing dividends every single year within a reasonable margin of safety and owned anywhere between twenty to sixty stocks I own closer to eighty because rumor has it I'm very well diversified and owned no more than 25 percent into each sector and that's what you should focus on combine that with a 65% savings rate and guess what you're gonna be done with life in about ten years and I mean you won't even need a job because the investments that you have and you've invested over those years are going to passively without needing a job pay you for all of your expenses for the rest of eternity and I mean that literally and yes I made a video about that - I hope the research that I provided earlier was enough to dissuade and discourage people from being day traders or traders in general just because guys it just doesn't work and I hope the research shows that enough but full disclosure have I ever sold stocks yes of course I have in the last eight years have probably sold about eight stocks one to two per average a year and yeah I've made mistakes my goal is to buy quality companies at attractively discounted prices but sometimes you know you make a mistake and you buy them slightly overvalued but over time that diversification smooths everything out and makes everything balance just as it should I think this was the most important metric that I can provide for you before I give you the fundamental analysis for companies because this is what you have to understand when investing in a stock market it's not about trying to time it it's not about trying to like figure out when is the best way to get in this is the best time it's today and this guy right here behind me is my dividend tracker I made it myself it has all of my companies the balance that it has in the industries it's all color-coded the dividend yields it has everything and it's actually for iOS but I'll also be making a Microsoft Excel version and I know I've promised that to you guys several months back I just haven't found the best way of sharing it with everyone besides that almost going to be making a top 20 portfolio recommendation as well as a fundamental analysis video and what else was I gonna make I was gonna share with you guys how much money I made for last month of June in my dividends I think it was a pretty big month so anyway guys pump up those rookie savings rates continue investing invest today invest long-term don't listen to the market media stuff it just doesn't matter what the media says and continue doing your thing continue being awesome love you guys and I'll see you very soon happy

Channel: Andrei Jikh

Views: 394,233

Keywords: stock analytics, stock analysis, stock market 2019, robinhood, Robinhood app, m1 finance, webull, robinhood portfolio, finance, investing stock market, m1 finance portfolio, passive income 2019, robinhood app how to make money, dividend stocks, stock market for beginners 2019, stock market analytics, how to buy stocks beginners, financial education, andrei jikh, stock market guide, beginner guide to stocks, stocks for beginners, analyzing stocks, how to start investing

Id: seN4gz_B1Uo

Length: 12min 31sec (751 seconds)

Published: Mon Jul 08 2019

Reddit Comments

[u/YOUREABOT]

Great clip as always Andrei! Gotta invest for the long run, it's the only way to succeed :)