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Study Hall: KEYS TO LONG TERM INVESTING WITH IAN DUNLAP · Earn Your Leisure

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Speaker 1: An illegal alien from Guatemala charged with raping a child
0:03
Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
0:07
Speaker 1: accused of murdering a Texas man of Venezuelan charged with
0:11
Speaker 1: filming and selling child pornography in Michigan. These are just
0:15
Speaker 1: some of the heinous migrant criminals caught because of President
0:19
Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
0:23
Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
0:28
Speaker 1: crossings are at the lowest levels ever recorded, and over
0:31
Speaker 1: one hundred thousand illegal aliens have been arrested. If you
0:35
Speaker 1: are here illegally, your next you will be fined nearly
0:39
Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
0:43
Speaker 1: never return. But if you register using our CBP home
0:46
Speaker 1: app and leave now, you could be allowed to return legally.
0:50
Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
0:55
Speaker 1: border and families will be protected.
0:57
Speaker 2: Sponsored by the United States Department of Homeland Security. COVID
1:00
Speaker 2: cases are spiking and this is going to be a
1:03
Speaker 2: little repeat of twenty twenty, and I need you to
1:07
Speaker 2: get prepared. So for those of you that are conspiracy theorists,
1:11
Speaker 2: they listening to Alex Jones all day. Sorry, almost four
1:14
Speaker 2: hundred thousand people have died. This thing is real and
1:17
Speaker 2: it's getting worse now. This is the scary part. The
1:19
Speaker 2: second version or the second iteration of COVID spreads faster
1:24
Speaker 2: than the original. So I want you to write these
1:27
Speaker 2: golden rules down because we are in a new normal.
1:31
Speaker 2: We will never go back to the old model. So
1:33
Speaker 2: for those of you who are in the workforce before
1:35
Speaker 2: two thousand and seven, when the Great Recession hit, it
1:38
Speaker 2: changed how business was done forever. I remember even going
1:42
Speaker 2: to college in two thousand and it was like, man,
1:43
Speaker 2: if you graduate, you're guarantee the job. And then the
1:46
Speaker 2: Great Recession hit and that got wiped away. Twenty twenty
1:52
Speaker 2: is come and we'll talk about it later. The era
1:55
Speaker 2: that we're entering in now so before the information age,
1:58
Speaker 2: where we are in a new age now. But here's
2:02
Speaker 2: the thing that I want you to do. If you
2:04
Speaker 2: are working, please write this down right now. For every
2:07
Speaker 2: dollar that your company pays you, you need to know
2:11
Speaker 2: how much of a return you are giving them, because
2:14
Speaker 2: it's the only thing that is going to give you
2:16
Speaker 2: any security with that company. Or when it's time to
2:19
Speaker 2: apply for another job. Secondarily, I want to focus on this.
2:24
Speaker 2: You have to break up your time into quadrants of
2:28
Speaker 2: four and you have to have a time for work
2:30
Speaker 2: a time for play. I'll tell you like this, Never
2:33
Speaker 2: have I been to the funeral and once thought about
2:35
Speaker 2: business when I was there. And companies will not care
2:39
Speaker 2: about you as much. And everyone has seen the meme.
2:41
Speaker 2: If you die today tomorrow you know your job will
2:45
Speaker 2: be on a job board and that is very true.
2:47
Speaker 2: So as we enter this new normal and things are
2:50
Speaker 2: not going back to how they were before, I want
2:52
Speaker 2: you to pick your own balance for how things are
2:55
Speaker 2: going to be governed and then in this era for
2:57
Speaker 2: you and your family. One of the biggest trading lessons
3:01
Speaker 2: of the week to all my traders, get your pans out,
3:03
Speaker 2: We'll get your phone out and screenshot this. Once you
3:06
Speaker 2: have a major loss, you have to cut your losses
3:08
Speaker 2: and stop. So number one, I want you to take
3:11
Speaker 2: a break for a week, and after two days, I
3:15
Speaker 2: need you to look at the recording and see what
3:16
Speaker 2: went wrong. So if you go through the book Market Wizards,
3:19
Speaker 2: which is probably my favorite book on trading, one of
3:23
Speaker 2: the biggest things that people talk about is when they
3:25
Speaker 2: have a big loss. You almost feel like you're in
3:27
Speaker 2: a tornado and you don't know what happened, and emotions
3:30
Speaker 2: kick in. But like a player would postgame, you need
3:33
Speaker 2: to go through and look at the footage to see
3:35
Speaker 2: what went wrong, what happened wrong, on what you can
3:38
Speaker 2: do differently so that does not happen again. And number
3:41
Speaker 2: one Number two, if you are a trader and you
3:45
Speaker 2: are winning less than fifty percent of your trades, please
3:48
Speaker 2: write this risk to reward ratio down. I want you
3:51
Speaker 2: to risk one to make twenty two. Please type in
3:56
Speaker 2: chat what percentage do you need to be at in
3:58
Speaker 2: order to be profitable? If that is your risk of reward. Now,
4:01
Speaker 2: not all products are gonna allow you to do that,
4:04
Speaker 2: but now as that dal Russell on the future side
4:07
Speaker 2: will allow you to do so, you need to risk
4:09
Speaker 2: one to make twenty two. So even if you are
4:11
Speaker 2: a bad trader from a stat's perspective, you still need
4:14
Speaker 2: to be able to make money and know what the
4:16
Speaker 2: probability is of your trading. I don't know something, You're
4:21
Speaker 2: gonna kill me, but look, if UFOs are real, then
4:24
Speaker 2: a space exploration will be the next frontier. So a
4:28
Speaker 2: couple of weeks ago, on ig I was posting all
4:29
Speaker 2: these conspiracy videos about UFOs right, and then behind the
4:35
Speaker 2: scenes you can see there are a couple of tickers
4:37
Speaker 2: up here. Go look at the ticker UFO, the ticker
4:41
Speaker 2: are okay, t rocket. And then of course the amazing
4:46
Speaker 2: Kathy Woods has her own which is going to focus
4:49
Speaker 2: on space expiration. I think over the next ten years
4:51
Speaker 2: there'll be some incredible revelations. But of course Amazon and
4:55
Speaker 2: Tesla are already there. Whenever SpaceX goes public, I'm gonna
4:59
Speaker 2: be by towards them because Elon is a great leader.
5:02
Speaker 2: But look at these two ticker symbols. Tonight, question for you,
5:08
Speaker 2: I need you to write this in chat. Have you
5:10
Speaker 2: made more money from long term holding or from trading?
5:14
Speaker 2: Kirk put up a great comment last week, and I
5:17
Speaker 2: was told by my uncle, an investor worth a high
5:19
Speaker 2: eight figures, what to do with my money. Only buy
5:21
Speaker 2: grown companies and hold them. Do not trade. You will
5:24
Speaker 2: regret doing that. Now. Twenty percent of people that begin
5:28
Speaker 2: trading stick around for more than a year. Out of
5:30
Speaker 2: that twenty only ten percent stay around for five years.
5:34
Speaker 2: Here's a great thing, though, Even if you never learn
5:36
Speaker 2: how to trade, keep your money in the market for
5:39
Speaker 2: a long enough period. A ten year old is ideal.
5:42
Speaker 2: You'll beat most people that are actually trading, because most
5:45
Speaker 2: traders blow up their account and give all their money back.
5:48
Speaker 2: So I know there's a lot of other things that
5:51
Speaker 2: are sexy, but the tried and true formula here is
5:55
Speaker 2: to hold for ten years, and if you can hold
5:57
Speaker 2: for thirty, that would be absolutely incredible in terms of selectivity,
6:03
Speaker 2: in terms of your allocation. For every twenty investments you see,
6:09
Speaker 2: you have to say no to nineteen of them. So
6:12
Speaker 2: for weeks we've talked about fundamentally what I look at
6:14
Speaker 2: when I assess the company, and we'll talk about another
6:16
Speaker 2: one tonight. But when I'm going through and comparing companies
6:20
Speaker 2: to the primary ones that I like, they have to
6:23
Speaker 2: trump the ones that I have already, and if they don't,
6:27
Speaker 2: you have to let it go. Sometimes because of the
6:31
Speaker 2: amount of media we're taking in, we're like, hey, let
6:33
Speaker 2: me just jump in this one and let's see how
6:35
Speaker 2: it pans out. But remember the number of shares that
6:38
Speaker 2: we own is more important than the price we particularly
6:42
Speaker 2: got in, and we want to focus on a few
6:45
Speaker 2: concentrated quality companies opposed to having thirty five in a
6:48
Speaker 2: portfolio trading lesson number three, and for traders, our point
6:55
Speaker 2: of reflection and insights usually happen on the days we
6:59
Speaker 2: have off. So the future as market was upen for
7:02
Speaker 2: half a day. The volume wasn't that high. But the
7:04
Speaker 2: secret is cutting down the number of trades you take
7:06
Speaker 2: for the year, so you can follow this simple matrix.
7:10
Speaker 2: First quarter, want you to take twelve. Second quarter, I
7:14
Speaker 2: want you to take twelve trades. Third quarter, twelve, fourth quarter.
7:20
Speaker 2: You already have an assessment for how the year went.
7:22
Speaker 2: Either we're super bullish, super barish, or we were ranging.
7:26
Speaker 2: Fourth quarter. You can double the amount of trades and
7:28
Speaker 2: do twenty four. But too many people trade like they're
7:33
Speaker 2: gambling in Vegas, opposed to running it like a business.
7:37
Speaker 2: You want to treat trade in like a business year
7:40
Speaker 2: in and year out. Please put trade like it's a
7:43
Speaker 2: business in chat. The top ten apps to twenty twenty.
7:48
Speaker 2: Now look at these. Zoom number one, which we're on now,
7:51
Speaker 2: and they're gradually improving. TikTok right, Third is Disney Plus,
7:56
Speaker 2: fourth is YouTube owned by Google, then Instagram, Facebook. But
8:01
Speaker 2: the thing I want you to notice how Instagram and
8:04
Speaker 2: Facebook are falling out of favor Josh last week talked
8:07
Speaker 2: about how Facebook is a communication company. And also, for
8:10
Speaker 2: those of you that are insiders on in the industry,
8:14
Speaker 2: you know that Zuckerberg is not the most favorable CEO
8:17
Speaker 2: for whatever reason. I don't know if because he blew
8:19
Speaker 2: off Wall Street week they haven't liked him since then.
8:23
Speaker 2: He isn't the darling entrepreneur and CEO that some of
8:27
Speaker 2: his peers are held out to be. So Facebook is
8:31
Speaker 2: sliding down. Snapchat, even though it's lost popularity, still was
8:35
Speaker 2: downloaded or not a lot messengers underneath Snapchat once again
8:39
Speaker 2: a Facebook product. It's towards the end of the chain. Gmail,
8:43
Speaker 2: and then of course cash App, owned by Square. Square
8:46
Speaker 2: is an amazing company. So these are the top ten.
8:48
Speaker 2: But when you see these kind of lists, pay attention
8:51
Speaker 2: to who is up top and who is sliding down.
8:54
Speaker 2: And if you compare twenty twenty to twenty nineteen and
8:57
Speaker 2: go through twenty seventeen and twenty sixteen, you will see
9:01
Speaker 2: that there's a gradual change to the downside. And then
9:03
Speaker 2: of course TikTok came out of nowhere and crushed the market.
9:07
Speaker 2: And I posted this earlier, but I need to have
9:11
Speaker 2: a very honest conversation with you about for those of
9:13
Speaker 2: you that are trading, if you're not studying every day,
9:16
Speaker 2: it's only because deep down you don't want to win.
9:20
Speaker 2: And if you're overtrading, it's because you don't want to win,
9:24
Speaker 2: because you are self sabotaging. I'll tell you like this,
9:27
Speaker 2: if you truly, truly love trading the act of and
9:31
Speaker 2: we have some athletes on here, like the guys that
9:33
Speaker 2: you have to beat into the gym, they don't want
9:35
Speaker 2: to play ball. And it's okay, you don't have to trade.
9:39
Speaker 2: You can make way more money doing something else. I
9:41
Speaker 2: want you to follow what your passion. I know, trading
9:43
Speaker 2: right now sexy as hell, and it's in vogue and
9:46
Speaker 2: I can't wait till it goes not to being sexy
9:48
Speaker 2: anymore how it used to be three or four years ago.
9:51
Speaker 2: But when you want it, you will lust after the
9:53
Speaker 2: work that comes with it in order to win. So
9:57
Speaker 2: if you are not studying every or you feel like
10:01
Speaker 2: it's a chore that you hate, I want you to
10:04
Speaker 2: make the decision either to walk away and be a
10:06
Speaker 2: long term investor or go all in. But I want
10:09
Speaker 2: you to put in chat. Are you going to go
10:10
Speaker 2: all in? All long term invest and like I said before,
10:15
Speaker 2: even if you just long term invest, you're going to
10:17
Speaker 2: do better than most people who solely trade. Last week,
10:22
Speaker 2: Josh talked to us about why PE ratio doesn't matter
10:24
Speaker 2: as much, and I want to take you down a
10:27
Speaker 2: quick trip down memory lane. So in two thousand and eight,
10:31
Speaker 2: because it's same So when you guys are like, hey,
10:32
Speaker 2: Apple's going to fall apart, this story gets printed every
10:36
Speaker 2: damn year. So in two thousand and eight, this is
10:40
Speaker 2: the day, like the market lost faith in Apple. Steve
10:42
Speaker 2: was still running it right, so you can see here
10:46
Speaker 2: had about an eighteen cash trailing and ten x four
10:50
Speaker 2: it while maintaining seventy percent earnings growth for over a year.
10:54
Speaker 2: And it was the same thing. Not enough products, MacBooks
10:57
Speaker 2: are dying, the CEO isn't good, is boring? We want
10:59
Speaker 2: some new right, But look at the price of Apple then,
11:05
Speaker 2: and if you would have held from two thousand and
11:07
Speaker 2: eight through now. So when we're looking at these ratios,
11:11
Speaker 2: and even if you're looking at Benjamin Graham's model or
11:14
Speaker 2: another indicator that you guys can runt write down is
11:16
Speaker 2: buffets measurement of the market. They are great ways to calculate,
11:22
Speaker 2: but sometimes they misstep. So if you go and look
11:25
Speaker 2: at this article, you can see Apple's potential was discounted
11:30
Speaker 2: for six months before the recession, and then the market
11:33
Speaker 2: bottomed out and their earning was great and they continue
11:37
Speaker 2: to innovate and continue to make sales like crazy, and
11:40
Speaker 2: they went to the upside. So even if something has
11:42
Speaker 2: a high PE ratio, it's just the cost that you're
11:46
Speaker 2: paying for those earnings. But what if they're earning their
11:49
Speaker 2: company is printing earnings like shit and they are non
11:53
Speaker 2: their company that's a NonStop printing machine. You should not
11:56
Speaker 2: get out of them because of that reason. So sometimes
11:59
Speaker 2: PE ratio and these ratios can be misleading. I think
12:02
Speaker 2: they are good measurement for the overall index, but there
12:06
Speaker 2: has to be an exception for when a company it's
12:08
Speaker 2: top one or two in it's field. And this is
12:11
Speaker 2: the point that I need to drive home again for
12:14
Speaker 2: my fundamental and technical traders. There has to be a
12:17
Speaker 2: catalyst for while the market falls, the market isn't going
12:20
Speaker 2: to slide down just because we hit a technical level.
12:23
Speaker 2: That's why you can see we constantly have been hitting
12:25
Speaker 2: all time highs and everyone's like, well, I'm in short here,
12:27
Speaker 2: and I'm like, why so they hit a high, it
12:29
Speaker 2: can go fifteen percent higher before it eventually slides down.
12:36
Speaker 2: So you need an interest rate increase, which we may
12:39
Speaker 2: have soon. A bubble, a weak market, we need something
12:42
Speaker 2: to push it down. And here's a good trick to know.
12:44
Speaker 2: Whatever that catalyst is, it will be on the news
12:48
Speaker 2: as soon as you get off work soon and then
12:50
Speaker 2: it'll be all over social. So with COVID is if
12:53
Speaker 2: we hit a certain benchmark, we cross three or four
12:56
Speaker 2: million deaths, that will push the market down a lot.
12:59
Speaker 2: But until then, don't worry. I don't know if you
13:03
Speaker 2: guys know, but Market Monday is a idea and a
13:07
Speaker 2: real time course that should be a hell of a
13:11
Speaker 2: lot in real time. But I want you to remember
13:13
Speaker 2: to execute. Kudos to their brother here who's up on
13:17
Speaker 2: Plug and NEO. What I don't want to do is
13:19
Speaker 2: solely entertain you. What I want you to do is
13:22
Speaker 2: for you to be entertained, inspired, and then you execute.
13:25
Speaker 2: So I know some of you are like, hey, you
13:28
Speaker 2: hear one thing, but when you go back and listen,
13:31
Speaker 2: another thing has been said. So for those of you
13:33
Speaker 2: that have wondered if NEO is solid, plug is solid. Yes,
13:36
Speaker 2: I don't think they're the leader in that space, and
13:38
Speaker 2: I don't think that they will be.
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Speaker 2: At least for five or ten years. But they are
16:33
Speaker 2: solid investments, but they're too high at the moment. And
16:37
Speaker 2: same thing with Boeing. Boweing is not one of the
16:39
Speaker 2: best companies. There's a great lesson here. Sometimes certain assets
16:43
Speaker 2: will come down so much that they are just a steel.
16:46
Speaker 2: So if you can get a house that's worth two
16:48
Speaker 2: hundred grand on sale for twenty five grand, that's what
16:51
Speaker 2: Boeing look like when we crash. I don't love Boweing,
16:54
Speaker 2: but out of the airline sector was the only one
16:56
Speaker 2: that I really liked, and they know one up to
16:58
Speaker 2: twenty nine and off and it's been sliding back. So
17:01
Speaker 2: once again, I want to remind you guys to listen,
17:05
Speaker 2: take notes, and even after the episode is over, watch
17:07
Speaker 2: the replay because there's some gems in there that you
17:09
Speaker 2: probably missed onto fundamentals that matter. Please write, write this down.
17:14
Speaker 2: Rotation is not for you. I've never seen so many
17:18
Speaker 2: retail traders in my life here about rotation for long
17:21
Speaker 2: term investment. If you're trading, okay, different, but if you're
17:25
Speaker 2: holding for a long period of time, it's not for you.
17:28
Speaker 2: Hedge funds have to spend money every quarter. You don't.
17:32
Speaker 2: And then the second one is mind share. So mind
17:34
Speaker 2: share is when you say a category or brand is
17:38
Speaker 2: the first thing that you think about. So let's play
17:40
Speaker 2: a little game. So if I mention a car company,
17:43
Speaker 2: what's the first car company that comes to your mind?
17:45
Speaker 2: Please type and chat. Okay. Now, if I mentioned a
17:51
Speaker 2: sneaker company, what's the first one that comes to mind? Okay?
17:59
Speaker 2: If I mention an electronics company, well, let's say computer
18:02
Speaker 2: company to be more specific, which one comes to mind?
18:09
Speaker 2: I love Michaeldeal, but nobody's saying Dell. So mind Chair
18:13
Speaker 2: is the one. If you interview ten people on the street,
18:15
Speaker 2: eight out of ten would say that particular brand mind
18:19
Speaker 2: Chair is an equation and fundamental analysis that I think
18:23
Speaker 2: is over excuse me, underrated, very underrated. And I want
18:27
Speaker 2: to clear this up. So I know some of you
18:30
Speaker 2: have been hit me up about twenty four strings of revenue.
18:31
Speaker 2: I want to be very clear. I'm not saying that
18:34
Speaker 2: I want you to make twenty four different businesses or
18:36
Speaker 2: have twenty four jobs, because that's impossible. But I do
18:40
Speaker 2: want to walk through some of the biggest finance lessons
18:42
Speaker 2: from some of the biggest companies in the world. So
18:44
Speaker 2: if you look at Microsoft, Microsoft has over one hundred
18:48
Speaker 2: and one products. If they only needed seven for world
18:53
Speaker 2: domination with all the data that they have, don't you
18:56
Speaker 2: think they would do seven apples? Thirty Pepsi has over
19:03
Speaker 2: one hundred. Let's go to all my folks in atl
19:06
Speaker 2: Coca Cola. You can google this has five hundred brands
19:11
Speaker 2: underneath their umbrella and thirty nine hundred beverag choices thirty
19:17
Speaker 2: nine hundred. So if the magical number was seven, with
19:22
Speaker 2: all the research and brand development that Coca Cola's done.
19:25
Speaker 2: Don't you think seven will be more than enough? So
19:28
Speaker 2: if you're just starting, I don't want you to be
19:31
Speaker 2: upset by hearing this number. But our job is delivered
19:36
Speaker 2: to deliver the truth to the community and not bullshit
19:38
Speaker 2: advice that's been shoveled down Instagram until you by people
19:43
Speaker 2: who are not doing that. But they're on clubhouse nine
19:45
Speaker 2: hours a day drinking all the kids juicy juice. Like,
19:49
Speaker 2: we're not here for that. But thirty nine hundred choices
19:52
Speaker 2: is a lot of excus but there's a reason for that.
19:57
Speaker 2: I'll walk you through a book that I think is
19:59
Speaker 2: probably probably going to be the next money master of
20:01
Speaker 2: the game from a macro level tonight. But a very
20:04
Speaker 2: interesting insight that Chamunth gave to Josh when they were
20:09
Speaker 2: at a conference was they stopped learning twenty years ago.
20:13
Speaker 2: What I don't want you, guys to do is even
20:15
Speaker 2: hear the information that we give you and just take
20:17
Speaker 2: face value. I want you to go review it, read
20:21
Speaker 2: it and make sure that it's true, because most people
20:23
Speaker 2: in investing stop learning after year one, and that's how
20:30
Speaker 2: most people end up giving up their edge. Okay, and
20:34
Speaker 2: you guys did an amazing job with the interview with
20:36
Speaker 2: Mark Cuban. I want you guys to go back and
20:39
Speaker 2: look and listen to the interview. But the minimization of
20:42
Speaker 2: risk for how he was protecting his capital and his
20:45
Speaker 2: new found wealth is the most important lesson in that
20:48
Speaker 2: college strategy that he executed. Could he have made more, Yes,
20:53
Speaker 2: he's done pretty damn well for himself. Since kudos to
20:55
Speaker 2: everybody at iye you. But even if you don't have
21:00
Speaker 2: a lot of money, I know the idea is you
21:02
Speaker 2: want to grow fast. But if you grow fast and
21:06
Speaker 2: you lose fast, what ends up happening for us to
21:08
Speaker 2: the African American and breaks your spirit and you leave
21:11
Speaker 2: the market and never come back. It's a unique experience.
21:16
Speaker 2: So the reason why I'm saying defense, defense, defense, Why
21:19
Speaker 2: it's not the sexiest thing. It doesn't matter if you
21:23
Speaker 2: have a two hundred percent gainer and then on your
21:24
Speaker 2: next trade you get back one hundred and fifty percent
21:27
Speaker 2: of it or two hundred percent of it, or you
21:30
Speaker 2: get margin called and lose more. So go right down
21:33
Speaker 2: and go look up that strategy that he executed, and
21:36
Speaker 2: I think it will have a tremendous impact on how
21:39
Speaker 2: you invest going forward. This is for the dads. I
21:44
Speaker 2: want you to stop thinking about investing over a short
21:47
Speaker 2: period of time, and I want you to make some
21:49
Speaker 2: funds available for your family for the next hundred years.
21:54
Speaker 2: I think we're thinking about this on too short of
21:57
Speaker 2: a timeframe. Is it worth a sacrifice? I think if
22:02
Speaker 2: you love your child, yes, it's my job personally for
22:05
Speaker 2: me and my family to provide for the next two
22:07
Speaker 2: hundred years. So the seeds that I lay, I hope
22:12
Speaker 2: Xander or his child does not mess it up. But
22:14
Speaker 2: for the next two hundred years, I'll be able to
22:16
Speaker 2: provide a solid foundation for him and then for the
22:19
Speaker 2: dads to love your children. I think that should be
22:21
Speaker 2: a goal. And next week I'll walk you through some
22:23
Speaker 2: of the steps we can do to make that a reality.
22:28
Speaker 2: And for those of you who are just starting and
22:29
Speaker 2: you feel intimidated, let's look at this. Here's how much
22:33
Speaker 2: you would have made if you would have just invested
22:34
Speaker 2: five hundred a month type yes and chat if you
22:36
Speaker 2: spent five hundred a month partying or on other things
22:39
Speaker 2: that brought you less value four percent ready to return,
22:43
Speaker 2: which I mean invest in ask considerable risk. Nothing is guaranteed.
22:48
Speaker 2: We cannot project future gains based on past performance, and
22:51
Speaker 2: you can reshot at Troy, but I think I can
22:53
Speaker 2: comfortably say that we may be able to get you
22:55
Speaker 2: four percent easily. Perhaps five hundred a month for ten years.
23:01
Speaker 2: You have seventy three grand at six percent return, eighty
23:05
Speaker 2: one thousand, five hundred a month of ten years of
23:08
Speaker 2: an eight percent return, you have ninety one thousand. Now
23:10
Speaker 2: I want you to calculate if you got eighteen percent
23:14
Speaker 2: year of a year for ten years, how much that
23:16
Speaker 2: would be. It's not the dollar amount that you start with,
23:20
Speaker 2: it's the consistency and the action. And some of you
23:23
Speaker 2: figured this out in March. It's like you got in
23:25
Speaker 2: at a great price on some companies, but you only
23:28
Speaker 2: got ten shares of it. And it's like, damn. If
23:30
Speaker 2: you knew back then what you know now, you probably
23:34
Speaker 2: would have furnished or liquidated everything to furnish those investments
23:38
Speaker 2: going forward. So even if you're starting small, it's okay.
23:42
Speaker 2: It's going to give you confidence to bill later. And
23:45
Speaker 2: as we get close to wrapping up, I want to
23:47
Speaker 2: show you how to identify the best companies in the
23:50
Speaker 2: sector in less than ninety seconds. So if we take
23:57
Speaker 2: this site is called guru Focus. So let's go to
24:00
Speaker 2: my favorite Let's go to technology. Step one, I want
24:03
Speaker 2: you to click on the sector. It's my screen still
24:07
Speaker 2: showing to no. Yes, okay, hold on, let me show
24:11
Speaker 2: the entire screen. Okay, yeah, there we go. Now this
24:15
Speaker 2: is a gourgu Focus. I'm not a paid affiliated to anything.
24:17
Speaker 2: Step one, I want you to click on the sector.
24:21
Speaker 2: Great Now, After that, I want you to pick on
24:24
Speaker 2: the biggest portion of that pie. So in this case
24:27
Speaker 2: it will be software. It's fifty point eight percent of
24:30
Speaker 2: the market. So we'll click here. Great Now, we'll go
24:33
Speaker 2: to software and let's see who runs that space. And
24:38
Speaker 2: you can see clearly by industry waiting, Microsoft is first,
24:45
Speaker 2: and then you have the other smaller players. Notice nobody's
24:48
Speaker 2: ever screaming damn, I should buy IBM, even though they
24:51
Speaker 2: may have a chance in the next couple of years
24:53
Speaker 2: to go up a little bit higher. Right, And then
24:56
Speaker 2: you can do the same thing with hardware. So let's
24:57
Speaker 2: go look at hardware. We can look at the waiting.
25:00
Speaker 2: Who runs the waiting for hardware by a landslide is Apple.
25:05
Speaker 2: So I'm literally looking at who is the biggest player
25:08
Speaker 2: in the market selecting those and then inside of that category,
25:13
Speaker 2: I'm picking the top two. I don't want the ninth
25:15
Speaker 2: best semiconductor in a space, So let's click on semiconductor.
25:20
Speaker 2: So you can see in video Solid love a lot
25:24
Speaker 2: Intel that market share is dying great and you can
25:30
Speaker 2: use this site to see who are the market share
25:33
Speaker 2: leaders in a particular space. And I got a couple
25:35
Speaker 2: more slizes and then we'll wrap up. So if you
25:40
Speaker 2: look at the five things the market cares about the most,
25:44
Speaker 2: please screenshot this. There's so much talk about what matters
25:48
Speaker 2: and what moves the market. These are a core five.
25:51
Speaker 2: Number one, the stability of the economy. Is the economy
25:54
Speaker 2: doing good or bad. If the economy is doing good,
25:56
Speaker 2: people going to spend more, and even companies that are
25:58
Speaker 2: not that talented or that great we have great management
26:01
Speaker 2: will do well. Number two interest rates. Interest rates have
26:04
Speaker 2: been low for a long time, and when they finally
26:06
Speaker 2: bump this up, man, the market is going to slide
26:08
Speaker 2: back some and all this free cash that we've been
26:11
Speaker 2: getting out of the market and all these easy eighteen
26:13
Speaker 2: and twenty five percent games, they're going to go away.
26:17
Speaker 2: They're going to go away. Number three earnings of a
26:19
Speaker 2: particular company. So I want you to look at the
26:22
Speaker 2: top two leaders, of the top three leaders in the
26:24
Speaker 2: space and see what the earnings are. Number four does
26:27
Speaker 2: not get talked about enough enough, but it's really the
26:30
Speaker 2: number of buyers and sellers. There are more buyers in
26:33
Speaker 2: Tesla than there are short sellers. For all the short sellers,
26:36
Speaker 2: may you rest in peace, stop short in Tesla. And
26:39
Speaker 2: number five, who is best in a category investment? Is
26:44
Speaker 2: not that Even when we did the mind share exercise,
26:47
Speaker 2: no one is named of the fifteenth best player in
26:49
Speaker 2: the space. And we are in an efficiency era and
26:52
Speaker 2: this will not go away. So before it was the
26:54
Speaker 2: information age, but the companies that will dominate now are
26:58
Speaker 2: the ones that will make our lives easier, get things
27:01
Speaker 2: for us faster, and save us money. So like Roku, Netflix, Zillo.
27:05
Speaker 2: So if you guys have not looked, Zillo is now
27:07
Speaker 2: make an offer on houses. So for my real estate agents,
27:11
Speaker 2: you're going to have to find a way to take
27:15
Speaker 2: care of your customers and clients more and also sell
27:18
Speaker 2: them houses faster because the biggest player in the space
27:21
Speaker 2: is now starting to look to eat your lunch. And
27:23
Speaker 2: all technology companies usually aim to do this Dominos Match,
27:27
Speaker 2: so Match owns everything except Bumble. They are a huge
27:31
Speaker 2: conglimerate and when I did the interview with Easy, we
27:33
Speaker 2: talked about that a few months ago. They've been on
27:35
Speaker 2: a tear. And of course, Amazon, the company that makes
27:38
Speaker 2: life easier for us so we don't have to drive
27:41
Speaker 2: and drop off tapes at Blockbuster and get a fine
27:44
Speaker 2: Netflix is a better pick. Roku is a better pick.
27:47
Speaker 2: In comparison, we have now switched to an efficiency era
27:50
Speaker 2: and for my business owners, you need to find a
27:52
Speaker 2: way to get things delivered to you in a much
27:54
Speaker 2: faster way. Ten years ago you would have to drive
27:57
Speaker 2: to downtown to meet with Reshid right, maybe do love
28:00
Speaker 2: much now Zoom. We have to streamline everything that we're doing.
28:06
Speaker 2: And then the final thing I want to cover for
28:07
Speaker 2: you is the worst companies of this past decade had
28:13
Speaker 2: a central thing. They were energy focused, the big energy company.
28:18
Speaker 2: We companies we are watching die in front of us.
28:21
Speaker 2: And some will make the adjustment and some will go
28:23
Speaker 2: to clean energy and some will not, and they will
28:26
Speaker 2: die a slow death before a company to draw down
28:29
Speaker 2: seventy percent or eighty percent in a year is unfathomable,
28:32
Speaker 2: but we are here at a change right before eyes.
28:35
Speaker 2: So I appreciate you guys so much. I thank you Deally.
28:39
Speaker 2: I want to remind you to please invest in the
28:41
Speaker 2: market every single month, and if you are going to trade,
28:44
Speaker 2: be dedicated. Practice your ass off because it's not easy.
28:47
Speaker 2: I love you guys. Thank you my graduates from my
28:52
Speaker 2: school being forced back drop drop, drop, drop drop.
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