MASTER Investing in 89 Minutes (Start With Just $1) — Transcript
Full transcript
- 0:00In this free video course, you will
- 0:02learn everything you need to know about
- 0:04investing, even if you're starting with
- 0:07just $1. By the end of this course, you
- 0:10will not only be able to analyze stocks,
- 0:13ETFs, or any other financial market, but
- 0:16you will also learn multiple AI
- 0:19investing techniques that most investors
- 0:22don't know about.
- 0:25All right. So, hello everyone and
- 0:27welcome to this full master class on
- 0:30investing. And I do actually want to
- 0:32start this course with a quote from
- 0:36Warren Buffett himself. If you don't
- 0:38find a way to make money while you
- 0:41sleep, you will work until you die. And
- 0:45that is really the heart of this course.
- 0:47This course is made for everyone. It
- 0:50doesn't matter if you work a 9-to-F5
- 0:52job, if you are maybe a student, you
- 0:55know, maybe you are retired already, or
- 0:58if you are already a trader, this course
- 1:01might be even more important for you
- 1:04because the income you get from any job,
- 1:06whether you are a plumber or a trader,
- 1:10is very different compared to the
- 1:12passive income you can get from
- 1:15investing. And here I have put a lot of
- 1:18effort into making this course really
- 1:22futureproof.
- 1:23So you will of course learn timeless
- 1:26investing and wealth principles but you
- 1:29will also learn the very important
- 1:31skills we need to you know be able to
- 1:34invest and outperform in the future. So
- 1:36we will take a look at things like you
- 1:38know how to invest using AI. We will
- 1:42also take a look at things like how we
- 1:44can for example look at exactly what
- 1:47famous investors like Warren Buffett is
- 1:49buying and sell selling right now. Uh we
- 1:52will take a look at beginner mistakes
- 1:53and so on and so on. Uh but so we have
- 1:56so much to cover here and I'm very
- 1:57excited. But let's before we dive in
- 1:59here, let's just take a quick look at
- 2:01what you can expect to learn from this
- 2:03course. So here what will you learn in
- 2:06this course? Well, before we can start
- 2:09making money investing, we of course
- 2:12first need to know about what investing
- 2:14is and how it builds wealth over time.
- 2:19It's very important to have that strong
- 2:21foundation to really get the most out of
- 2:24your investing journey. Then we will
- 2:26move move on to take a look at some
- 2:28important differences here between
- 2:30investing trading and something known as
- 2:34position trading. And here, if you have
- 2:36been following for a while, you already
- 2:38know that I have lots of trading content
- 2:41on the channel. For example, I just
- 2:43recently put out a uh video course on
- 2:46how you can connect Claude, which which
- 2:49is one of the most powerful AIs in the
- 2:51world. It is the AI that the US
- 2:53government actually banned because it
- 2:55was it was too powerful. Um, and I
- 2:58actually made a video on how you can
- 3:00connect Claude to Trading View. And that
- 3:02video, as I'm recording this, uh, it has
- 3:05more than 100,000 views in just a few
- 3:07days. So, I'm blown away by that. And if
- 3:10you're interested in that, you can, of
- 3:12course, watch that video later on. But
- 3:14trading is just one piece of the puzzle.
- 3:16In my personal opinion, every single
- 3:18trader needs to know about investing. As
- 3:20I said in the intro, investing is
- 3:22something that everyone should learn.
- 3:24But, okay. So after we have this sort of
- 3:26good foundation, we're ready to move on
- 3:28here and take a look at how to analyze
- 3:32any stock like a professional and we
- 3:35will take a look at some very important
- 3:36concepts that you need to know about
- 3:38such as fair value and financial health.
- 3:41We will take a look at what they mean
- 3:42and we will also take a look at tools we
- 3:45can use to find out you know quickly the
- 3:48fair value and financial health of
- 3:50companies. Next here we're going to move
- 3:54on to a very very important chapter and
- 3:56that is how to use AI to find and
- 4:00research investments. As you guys
- 4:04probably know AI is, you know, getting
- 4:07more and more important every single
- 4:09day. It's improving, you know, every
- 4:12every single day. Or maybe not, you
- 4:13know, we're not getting new models every
- 4:15single day, but it's pretty much every
- 4:16week now. It's just accelerating and
- 4:19accelerating. So your ability to use AI
- 4:23uh you know as a sort of at least as an
- 4:25investment assistant is something you
- 4:28cannot do without. So this chapter is
- 4:30super important but as I said I highly
- 4:33recommend to you know watch the chapters
- 4:35here in order. I have actually built
- 4:37this course in a step-by-step manner. Uh
- 4:39so super super highly recommend to watch
- 4:41the chapters in order. But yeah, after
- 4:43this chapter, we're actually ready to
- 4:45move on to how we can see and copy the
- 4:49portfolios of famous investors like for
- 4:53example Warren Buffett. We can actually
- 4:55that is actually public information. We
- 4:57can see exactly what stocks Warren
- 5:00Buffett is holding. We can look at you
- 5:02know what is Ray Dalio holding or Bill
- 5:05Gates or whatever. Uh this is actually
- 5:07something we can see and I will show you
- 5:09guys exactly how. Lastly, but definitely
- 5:13not least, we will take a look at we
- 5:15will take a look at the biggest beginner
- 5:17mistakes and more importantly, how
- 5:20[snorts]
- 5:20to avoid them. But yeah, guys, this is
- 5:23roughly what you can expect to learn in
- 5:26this course. But here before we dive in
- 5:28to chapter one here, I have a few
- 5:30recommendations. And the first one is to
- 5:33please guys try to remove all your
- 5:36distractions. So please guys put this
- 5:38video in full screen and you know if you
- 5:41can remove your phone or at least you
- 5:44know mute all the notifications. The
- 5:47world is so distracted right now. Most
- 5:50people don't have the attention span to
- 5:52watch a 10-minute video. So being able
- 5:54to watch a full course you know from
- 5:56start to finish is in today's day and
- 5:59age I think it's a superpower. So, try
- 6:01to really remove all distractions and as
- 6:04I mentioned earlier, I highly recommend
- 6:05to watch the chapters in order because I
- 6:08have built this course in a step-by-step
- 6:09manner. But if you want to jump around
- 6:11in the video, maybe you want to rewatch
- 6:13a part, maybe you want to jump over a
- 6:16part, don't worry because I will have
- 6:18YouTube chapters slashtimestamps so you
- 6:21can jump around in the video. But now
- 6:24guys, we are finally ready to start with
- 6:27chapter one. But right so now then what
- 6:31is investing? Before we can start to
- 6:35make money while we sleep, we of course
- 6:38first need to know what investing is in
- 6:41the first place. And here the most
- 6:44simple definition of investing is simply
- 6:47that you are buying assets and assets
- 6:50here can be anything. It can most
- 6:53commonly people think about stocks. uh
- 6:55you know stocks is when you buy a piece
- 6:57of a company but it can be other things
- 7:00as well. So an asset can be it can be
- 7:02cryptocurrencies like uh for example
- 7:04bitcoin uh but it can be other things as
- 7:07well. You know you might be in investing
- 7:09in uh real estate or gold and so on and
- 7:12so on. Assets is basically uh anything
- 7:15you can invest invest in. But the
- 7:17important part about investing is that
- 7:19the goal here here is to hold them for
- 7:22the long term. So when you invest in
- 7:25something you I would say that you
- 7:27usually plan to hold them for at least
- 7:30years but maybe even decades. So many of
- 7:34the best investors like Warren Buffett
- 7:37actually plan to hold stocks for you
- 7:39know decades for the really really long
- 7:41term. And here as I said when you buy a
- 7:44stock you actually buy a small piece of
- 7:48a real company. So if you are buying a
- 7:51Apple stock, you are actually owning a
- 7:55small piece of Apple. You are one of the
- 7:58owners of Apple. If you buy buy
- 8:00Microsoft, you are owning a small piece
- 8:02of Microsoft and so on and so on. And
- 8:05because we're owning a small piece of a
- 8:08company, you know that the company uh is
- 8:11building products and working, you know,
- 8:13while you are awake, but also while you
- 8:15sleep. And that leads to the goal here.
- 8:18The goal is to let your money grow grow
- 8:22while you live your life. So that is
- 8:25what I'm trying to demonstrate with this
- 8:28image right here. So you put in money
- 8:31into a company whether it's you know
- 8:33mobile phones, cars or you know software
- 8:36and then you can go around and do
- 8:38whatever you want. Buy a coffee you know
- 8:40chill. You basically don't need to do
- 8:42anything. The money will grow while you
- 8:45sleep. And of course, I want to already
- 8:48mention that not every single stock will
- 8:51go up forever. That is of course not the
- 8:53case. But the very good thing about
- 8:56investing compared to maybe trading for
- 8:58example, is that on average the stock
- 9:02market goes up. So if you for example
- 9:05buy you know an ETF, we will talk about
- 9:07what an ETF is later on in this course,
- 9:10but if you buy uh an ETF of say, you
- 9:14know, the US stock market, it's very
- 9:17very likely that you will make money and
- 9:20the longer you hold, the more likely it
- 9:22is that you will make lots of money. So
- 9:25when it comes to investing, you can
- 9:26think of it that the odds are stacked in
- 9:29your favor. And the last thing that is
- 9:32so amazing about trading is that anyone
- 9:35can learn it. You don't need any fancy
- 9:38finance degrees. To be honest, many
- 9:40things they teach you in business
- 9:42school. You know, I have a bachelor
- 9:44degrees in economics. Many things they
- 9:46teach there can actually be
- 9:48counterproductive. They tend to use
- 9:49complicated math and so on and so on on
- 9:52assumptions that are often not true. But
- 9:55that's a bit little bit besides the
- 9:57point. But the point here is that anyone
- 9:59can learn. You don't need any prior
- 10:00knowledge. But right, so now let's take
- 10:03a look at the most powerful concept in
- 10:07investing. And I would actually argue,
- 10:09this might sound a little bit crazy, but
- 10:11I would actually argue that this is one
- 10:12of the most important concepts you can
- 10:14learn, you know, in general, in life in
- 10:17general. If you only learn like one
- 10:19thing, you should probably learn about
- 10:21compounding. And here, what do I
- 10:25actually mean by compounding? Well,
- 10:27compounding is the principle of earning
- 10:31returns on your returns. Or in other
- 10:35words, compounding is when growth build
- 10:38upon previous growth. So the classic
- 10:42example here as you can see on this
- 10:44image right here, if you focus on the
- 10:46image, is that if something grows, let's
- 10:49say, you know, 10% per year, as I show
- 10:51in this image, first it grows from 100
- 10:54to 110. But if it grows another 10% now
- 10:58it grows to 121. So first it grows by 10
- 11:02then it grows by 11 then it grows by
- 11:05more than 12 and so on and so on. So you
- 11:07can see that the the growth sort of
- 11:08build upon the previous growth but an
- 11:11even more powerful example it it becomes
- 11:14much more simple when we look at a more
- 11:17extreme example. So let's instead say
- 11:19that something grows with 100% per year.
- 11:22So let's say you start with 100, then of
- 11:25course it becomes 200, then it becomes
- 11:29400. Oops, my camera is a little bit uh
- 11:31away, but this goes on and on and on. So
- 11:33800, you know, 1,600
- 11:36uh 3,200. You can hopefully see 6,400,
- 11:41how powerful this this principle is. And
- 11:43the magic here is that even if this is
- 11:45at, you know, let's say that we're
- 11:47talking about 1 million instead, if it
- 11:49grows 100%, then it grows to 2 million,
- 11:53then 4 million, and so on and so on. The
- 11:57power of compounding is, you know, it's
- 11:59kind of easy to understand the math, but
- 12:02it's much harder to understand how, you
- 12:06know, real this power is. And and this
- 12:09is basically why, you know, the rich get
- 12:11get richer. If you already have you know
- 12:14100 million and you grow with you know
- 12:17just 1% you're growing 1 million and
- 12:22this affects continuous and continuous
- 12:24compounding is so so important and the
- 12:27reason I said that this is the most
- 12:29important concept not only in uh you
- 12:32know investing but life in general that
- 12:35is because I think that other things
- 12:37compound as well. So for example, things
- 12:40like knowledge, the more books you read,
- 12:43the more knowledge you will get from the
- 12:45next book because when you read the next
- 12:47book, you already have, you know, all
- 12:49the connected dots from the previous
- 12:51books you books you read. So you can
- 12:53sort of extract more from the next book.
- 12:55And it also can apply to other things
- 12:57like you know uh let's say
- 13:00relationships. uh the more people you
- 13:02you know, the easier it is to get to
- 13:04know maybe you know another another guy
- 13:07because you have all the connections and
- 13:09yeah I can ramble along uh about this
- 13:12principle for a long time but hopefully
- 13:13you get the point. And here a very
- 13:16famous quote uh about the power of
- 13:19compounding is this one right here. Time
- 13:22in the market beats timing the market.
- 13:26And the uh the sort of knowledge from
- 13:29this is that you know uh of course if
- 13:32you are a trader what you want to do is
- 13:34that you want to time the market. You
- 13:35want to you know let's say buy low sell
- 13:37high but if you are you know just a
- 13:40long-term investor you know that the
- 13:43effect of compounding will work for you
- 13:47over time. And I will soon show you guys
- 13:50a calculator that will really
- 13:51demonstrate this principle. So here the
- 13:54key takeaway is that starting early
- 13:57beats starting big. So it's more
- 13:59important that you start to invest as
- 14:01soon as possible than to start with lots
- 14:04of money. But right so here I just want
- 14:07to show you guys a calculator that you
- 14:09can use to really understand the the you
- 14:12know power of compounding growth. Uh
- 14:15this example right here is from our
- 14:17trading toolkit. We have multiple
- 14:19different calculators. we have, you
- 14:21know, a trading journal and so on and so
- 14:23on. But I'm just going to go to here
- 14:25where it says compound growth to just
- 14:27show you guys the power of long-term
- 14:30growth here. So here, uh, you can
- 14:32choose, you know, a starting balance.
- 14:34Let's, uh, for, uh, simplicity say that
- 14:36we start with $1,000. And then you can
- 14:39choose here if you want monthly or
- 14:41yearly compounding. Let's do yearly
- 14:43because that is the most common. And
- 14:45let's say that our investment grows with
- 14:4710% per year. And here you can choose
- 14:50the amount of years. So you know if we
- 14:54have 5 years we can choose how much
- 14:57money we we put in each year. And let's
- 14:59start actually with not putting in any
- 15:01money. And here we can see that after 5
- 15:03years your investment will grow to uh
- 15:071,600.
- 15:09But the power of compounding gets much
- 15:12stronger the more time we have in the
- 15:16market. So if we increase from five to
- 15:1910 years, you will notice that the the
- 15:21the amount we gain here will more than
- 15:23double. So let's increase to to 10. Now
- 15:26you can see that our amount is 2,00 you
- 15:29know almost 2,600.
- 15:31Let's once again double the time to 20.
- 15:34Now you can really see the compounding
- 15:36effect start here. Now it has grown to
- 15:386,000. Let's double it to 40. Now you
- 15:42can see 45,000. So you can really see
- 15:46the power of compounding. And here let's
- 15:50say that you also uh invest maybe maybe
- 15:54let's say $100 per month. Now you can
- 15:58see the power really starting to
- 16:00explode. Now we're talking about
- 16:02$629,000.
- 16:05And let's say we have a yearly return of
- 16:0815%. Now you can see that we have 2.7
- 16:14million. So I really hope that you can
- 16:16see how this effect of compounding
- 16:19really start to explode when we have
- 16:21these sort of long time spans. So the
- 16:24difference here between when we have
- 16:25these settings between 5 years is uh
- 16:2811,000 when we have 40 years it's 2.72
- 16:33million.
- 16:35All right. So now let's take a look at
- 16:36the difference here between investing
- 16:39versus trading. Both of these methods
- 16:43can be very profitable. But what you
- 16:45will learn in this course is that
- 16:47investing is so much more certain. Yes,
- 16:50you know, anything can happen. Sometimes
- 16:52we have, you know, a bare markets like
- 16:55the 2008 financial crisis, you know,
- 16:58like what happened during COVID and so
- 17:00on and so on. But if you are just
- 17:02investing for the long term, you will
- 17:04pretty much always end up making money.
- 17:07But here the difference here between
- 17:09trading and investing is this. Trading
- 17:13is when we aim to make profit from price
- 17:16moves that are maybe from you know
- 17:18minutes to weeks. While investing is
- 17:22when you own quality companies or it can
- 17:25also be like cryptocurrencies or uh real
- 17:28estate but you're holding for I would
- 17:30say at least years. Then we also have
- 17:33this uh sort of middle ground which is
- 17:36known as position trading and this is
- 17:38when we're holding for uh often for
- 17:41weeks to months maybe up to a year or
- 17:44so. So here on the image I tried to
- 17:47demonstrate this clearly. As you can see
- 17:48here trading is minutes to week and the
- 17:51price usually you know is very spiky. It
- 17:53goes up and down and so on and so on.
- 17:56Position trading you will usually see
- 17:57this more sort of smooth you know and it
- 18:01often goes up over that period. But when
- 18:04you are really talking about investing
- 18:06you are more focused on the actual
- 18:08business and the actual company. And
- 18:10here that is why traders often use
- 18:12something known as technical analysis.
- 18:15So technical analysis is when you
- 18:17analyze the charts of companies. So you
- 18:21look at things like price and volume uh
- 18:23to sort of and you you can for example
- 18:26day trade. So you can buy and sell
- 18:28something within the same day p within
- 18:31the same day purely based on how the
- 18:34price moves. While investors tend to use
- 18:38something known as fundamental analysis
- 18:40and fundamental analysis is when we take
- 18:42a look at how the actual company is
- 18:45performing. So how profitable is the
- 18:48company? how fast is the company
- 18:50growing? Uh we can look at things like
- 18:52you know who is in control of the
- 18:54company. Uh what is the management like
- 18:57and so on and so on. And here some
- 18:59people actually combine both uh
- 19:02technical analysis and fundamental
- 19:04analysis. So you might be an investor
- 19:06that focuses on you know really
- 19:08long-term plays but you can still maybe
- 19:11use technical analysis uh and some
- 19:13trading techniques to try to get you
- 19:15know an even better entry point. that is
- 19:18also a uh you know the sort of hybrid
- 19:21method is also definitely valid. Okay,
- 19:24so here just to show you guys an example
- 19:26real quick. Uh right now I'm in trading
- 19:29view and trading view is the platform I
- 19:32use for all my technical analysis and
- 19:34nowadays you can also use it a lot for
- 19:37fundamental analysis as well as well.
- 19:39Trading View has really grown to be a
- 19:41platform for you know basically all
- 19:44things trading. Um, and if you uh, you
- 19:46know, don't have Trading View yet, I do
- 19:49actually have a special link that you
- 19:50can use to get Trading View Premium for
- 19:53free for 30 days. And you will also get
- 19:56a $15 bonus if you use that link. Uh,
- 19:59but yeah, now I just want to show you
- 20:01guys here the difference between, you
- 20:04know, trading and investing real quick.
- 20:06So, right now we're looking at the S&P.
- 20:08This is the S&P 500, which you can
- 20:11basically think of as the 500 [snorts]
- 20:14most valuable companies in the US. And
- 20:16the US is the world's largest market. So
- 20:19this is pretty much the the most
- 20:21important index in the whole world. But
- 20:25right now, as you can see right here up
- 20:26here, it says D. It means that every
- 20:29candle you can see on this chart
- 20:31represents one day day worth of price
- 20:34movement.
- 20:36But what we can do here if we want to
- 20:38really zoom out is that we can go down
- 20:40here and choose for example a monthly
- 20:43time frame. So now every candle, every
- 20:46bar on this chart represents one month
- 20:49of price movement. And if we zoom out on
- 20:52this chart, so we can actually zoom out
- 20:54all the way back here, you can see that
- 20:56this chart pretty much starts all the
- 20:58way back here in uh I hope you can see
- 21:01this is back in 1930. This right here
- 21:04was actually the the depression back in
- 21:061930. But what you hopefully can see
- 21:09here really clearly is that over a
- 21:12large, you know, amount of time, the
- 21:15price goes up on average. Yes, we have
- 21:18this sort of brutal bare markets like
- 21:20the depression right here. We have the
- 21:232008 crash right here. That was brutal
- 21:26at the time. But when you zoom out, when
- 21:29you really zoom out, you can see that
- 21:30all of these brutal uh crashes are
- 21:33actually just a blip on the chart. For
- 21:36example, you know, the COVID crash is
- 21:38this tiny movement right here. So
- 21:40hopefully you can see that over time the
- 21:43price really really tends to go up to go
- 21:46up because over time you know uh you
- 21:50know uh we as uh human species uh we we
- 21:53tend to progress right we get new
- 21:55technology we get more efficient in
- 21:58producing things and so on and so on.
- 22:00But here is the monthly time frame and
- 22:02now uh as you can see on the monthly
- 22:04time frame it clearly goes up. But if we
- 22:06switch the attention and maybe take a
- 22:08look at fiveinut candles, you will see a
- 22:11completely different uh picture. And
- 22:13this is the kind of picture that traders
- 22:15have to work with. You can see that when
- 22:16we talk about the five minute time
- 22:18frame, the picture is not clearly up
- 22:21anymore. Now on the short-term time
- 22:24frame, you will see that we have much
- 22:26more sort of uh it kind of looks random.
- 22:29Right. Right. The price goes up and
- 22:31down, up and down, up and down. And it's
- 22:34definitely not clear that it goes up,
- 22:36you know, on the five minute time frame.
- 22:39However, if you are a trader, this might
- 22:41not be a good thing. Many traders
- 22:42actually likes when the price goes up up
- 22:45and down a lot because, you know, they
- 22:47might try to buy down here at support,
- 22:49maybe sell up here, buy up here, sell,
- 22:52and so on and so on. But all right, so
- 22:55now let's take a look at two types of
- 22:57investments that every single investor
- 22:59needs to know about and that is stocks
- 23:01and ETFs. And the first one is pretty
- 23:04simple. A stock is a share of ownership
- 23:09in one company. So if you buy a stock in
- 23:13Tesla, that basically means that you are
- 23:15now owning a small piece of Tesla. You
- 23:19are actually an owner of Tesla. However,
- 23:22an ETF here and this is so important to
- 23:24learn. That is what is known uh that is
- 23:26what is an exchange traded fund and when
- 23:29you buy an ETF you're not only buying
- 23:32one stock but you are buying basically a
- 23:35basket of many stocks that you can buy
- 23:38in one click. So that's what I try to
- 23:41demonstrate with this image right here.
- 23:44When you buy an ETF uh let's say we have
- 23:46a super simple ETF with maybe Tesla,
- 23:49Apple and Nvidia. If you buy that ETF,
- 23:52you are now, you know, basically an
- 23:55owner of all of these three stocks or at
- 23:57least an indirect owner. And for many
- 24:00tra and for many investors, especially
- 24:02beginners, ETF investing is what I
- 24:05recommend. It's such a good way to get
- 24:07started because you get the sort of
- 24:09broader index. As I showed you guys
- 24:11earlier, over time, the indices, you
- 24:15know, goes up or tends to go up. So, a
- 24:17very clear example of an ETF is the S&P
- 24:22500 ETF, uh, which basically holds the
- 24:26500 largest US companies. So, if you buy
- 24:30the SPY ETF, so if you buy the S&P 500
- 24:34ETF, you're basically binding a buying a
- 24:37little piece of ownership in all of
- 24:39these 500 companies. So a key takeaway
- 24:42here is that one ETF share means instant
- 24:47diversification.
- 24:48And in simple terms, diversification is
- 24:51when you are spreading your risk between
- 24:54you know multiple multiple companies
- 24:56because a very important principle to to
- 24:58remember here is that if you only buy
- 25:00one stock of course that stock can go to
- 25:04zero. It has happened, you know, it
- 25:05happens all the times that companies go
- 25:08uh bust, but it has never ever happened
- 25:12that that the S&P 500 goes to zero. It
- 25:14simply doesn't because the S&P 500 are
- 25:17the 500 best companies in the US in
- 25:20order for that ETF to go to zero. We
- 25:23basically need, you know, something like
- 25:26World War II or something where every
- 25:28company in US goes to zero. That's not
- 25:31really uh you know a scenario we want to
- 25:34think about. It's very very unlikely to
- 25:36happen. So here just to show you guys an
- 25:39example of an ETF. Uh right now I'm on
- 25:42investing.com here and we are looking at
- 25:45the S&P 500 ETF Trust which is known as
- 25:49the SPY ETF. This is the ETF where as I
- 25:53said with one click you can buy all the
- 25:56best companies in the US. So for example
- 25:58here in the top you can see the price
- 26:00graph but more interesting interestingly
- 26:03if we scroll down here you can actually
- 26:06see the companies in the ETF and also
- 26:09the weight here. So the weight is you
- 26:11know how big part of the full ETF is
- 26:14that company and it's uh actually based
- 26:16on how big the company is. So for
- 26:18example, right now Nvidia is the world's
- 26:22largest stock and that is why Nvidia
- 26:25actually has the highest weight in SPY.
- 26:28So you can see the largest is uh so when
- 26:30you buy one SPY ETF you get 7.64%
- 26:36of that buy is Nvidia stock. Very close
- 26:40second here is Apple with 7.63%.
- 26:44So when you buy a spy ETF, you get that
- 26:46much of Apple, you get 4.55% of
- 26:50Microsoft, 3.76% of Amazon, and so on
- 26:54and so on. But right, so now let's take
- 26:56a look at the two best ways to invest
- 27:00your money. And we have here method A
- 27:03and method B. The first method here,
- 27:05method A and the method I actually
- 27:07recommend if you are a complete
- 27:08beginner, I recommend this method and
- 27:11that is ETF investing.
- 27:14And the reason for this is that it's
- 27:16super super simple. You will already be
- 27:19diversified and you will spend very
- 27:22little time. So if you are the kind of
- 27:25investor that you you let's say you
- 27:27don't really want to think about
- 27:28investing but you do want to make money
- 27:31then this method is for you because you
- 27:33can let's say you can just every month
- 27:36or every other week or whatever time
- 27:39frame you need you can simply just buy
- 27:41you know an ETF with one click and then
- 27:44look away then you can go to the beach
- 27:46or whatever you want to do. But method B
- 27:49here is what is known as stock picking.
- 27:52And this is for investors. Let's say
- 27:54that you are really interested in in
- 27:56investing and you actually want to beat
- 27:58the market. So you want to perform
- 28:00better than the, for example, the SPY
- 28:03ETF. You want to be, you know, a better
- 28:05investor than the average. Uh then this
- 28:08method is for you. And I specifically
- 28:10highly recommend this method for people
- 28:12that, you know, a you you really need to
- 28:15be interested in investing. you want to
- 28:17be, you know, you you really want to
- 28:18learn more about investing, uh you
- 28:21really want to take investing seriously,
- 28:23then this method might be for you. And
- 28:25two, you also need to have the time. Uh
- 28:28you don't need to to, you know, spend
- 28:31every day or or something stock picking,
- 28:33but it definitely takes more time than
- 28:35method A. So here, if you look at this
- 28:37image right here, you can see the two
- 28:38method. Method A is super simple. You
- 28:40buy a basket of stocks and you don't
- 28:43have to think about it. Method B here is
- 28:46when you pick out the best stocks. And
- 28:50the very nice thing about this method is
- 28:52that of it of course have higher
- 28:54potential. It has much higher potential.
- 28:57This is one of the big reasons why for
- 28:59example Warren Buffett has become so so
- 29:01rich. He has been you know outperforming
- 29:04the market over a long period of time.
- 29:07But what is very important with method B
- 29:09is that it's also more risky. So that is
- 29:12a you know principle in life in general
- 29:14that the the higher risk you take often
- 29:17the higher potential reward. But here
- 29:19you don't have to choose just one
- 29:22method. A very popular combination here
- 29:25is that you have an ETF as a core. So
- 29:29maybe you have let's say 70% of your
- 29:32money in an ETF and then the rest of the
- 29:34money you might use to pick stocks. So
- 29:38this can be for example good if you are
- 29:41you know you're maybe interested in
- 29:42method B but you are not confident
- 29:44enough uh to go full method B and full
- 29:47uh stock picking. So this can actually
- 29:50be an amazing hybrid combo in my
- 29:52opinion. And here all you need to start
- 29:55investing is that you need a broker
- 29:58account. And often I get you know
- 30:01questions on my channel you know which
- 30:03sort of broker should I use and so on
- 30:05and so on. And the thing about stocks is
- 30:08that this will highly depend on what
- 30:10country you are uh you are from. For
- 30:13example, here in Sweden where I'm from,
- 30:14a very popular choice that I use is
- 30:16called Avansa. Uh but in order to to use
- 30:19that uh I'm pretty sure you need to be a
- 30:21Swedish citizen or it might be Nordic
- 30:24nowadays, but uh you know it you can't
- 30:26really use it if you're from another
- 30:28country. So when it comes to the best
- 30:31broker account and so on and so on, I
- 30:33actually recommend to do that research
- 30:35yourself and nowadays that research can
- 30:37be done uh you know super easily with
- 30:41tools like chat evbt or claude. And
- 30:43another very nice thing here is that
- 30:45many brokers let you start with things
- 30:47like just maybe just $10 because you can
- 30:50buy what is known as fractional shares.
- 30:53That is when you don't need to buy a
- 30:55full stock. So for example, some stocks
- 30:57might cost, you know, hundreds of
- 30:59dollars or even thousands of dollars. So
- 31:01fractional shares is a way for you to
- 31:04buy basically a share of a share or a
- 31:07piece of a stock. But right so now then
- 31:11now the time has come to take a look at
- 31:14fundamental analysis. And this right
- 31:17here is the main analysis technique you
- 31:21need to learn if you want to beat the
- 31:23market. It's the same method that the
- 31:25best investors like Warren Buffett use.
- 31:28And what fundamental analysis is in
- 31:31simple terms is that you are judging a
- 31:34company by its business not its chart.
- 31:38So you are not analyzing you know the
- 31:41individual candlesticks on the chart but
- 31:43you are rather asking the question is
- 31:46this a good business? Is this a good
- 31:49business at a fair price? So, as you can
- 31:53see on the image right here, you are
- 31:54basically zooming in on the on the
- 31:57business and you are not focused on the
- 31:59chart. Of course, it's it's important to
- 32:02just read, you know, how much is the
- 32:04market valuing the company right now,
- 32:06but you don't really care about the
- 32:07small ups and downs um recently. But
- 32:10here you look at things like for example
- 32:13revenue and also of course things like
- 32:16profit. You look at things like cash
- 32:18flow and you analyze, you know, risks
- 32:21like for example, how much depth does
- 32:23the company have? And these are just
- 32:25some examples of what you can analyze of
- 32:28a company. But now you might of course
- 32:31wonder how do I analyze all of these
- 32:33companies? Where do I find all the data
- 32:36for how companies are performing? This
- 32:39is something you can actually do
- 32:40completely manually. So if you want to
- 32:42look at for example how how Nvidia
- 32:44performs, you can go to the Nvidia uh
- 32:47website and download the earnings report
- 32:49and read the whole report yourself. It's
- 32:52completely free and it's like maybe
- 32:54hundreds of pages per company. But there
- 32:57are many platforms out there that does
- 32:58all of this sort of tedious and boring
- 33:01part of fundamental analysis for you and
- 33:04presents it in really clear and easy
- 33:06understand ways. And one platform I have
- 33:09been using more and more recently is
- 33:11called investing pro. This platform have
- 33:14the data of more than 70,000 companies
- 33:18and even more importantly it have built
- 33:21you know so many features on top of this
- 33:23data. So just as an example right now
- 33:26we're looking at proix AI. So this is an
- 33:29AI on top of the sort of premium data.
- 33:33So, for example, right here, this is an
- 33:35example of a pre-built investing uh
- 33:38strategy called Tech Titans. And this is
- 33:40an example of one of the best pre-built
- 33:42trading strategies. This one is up
- 33:44around uh right now as we're speaking,
- 33:46up 3,200%.
- 33:49And you can see this gray line right
- 33:51here is how the S&P 500, the index we
- 33:54looked at earlier, have performed. And
- 33:56you can see that the, you know, the
- 33:58outperformance here compared to the S&P
- 34:00500 is crazy. Uh, so this is a pre-built
- 34:04investing strategy. It also has its own
- 34:06AI called Warren AI that is, you know,
- 34:10pretty similar to a chatbot like chatbt.
- 34:13But the main difference here is that
- 34:15this AI is directly connected to the
- 34:20premium data that is available on
- 34:22investing pro. So this is like a chatbt
- 34:24built on top of premium data. So there
- 34:27are so many you know very interesting
- 34:29features in investing pro. It also has
- 34:31this tab where you can copy uh other
- 34:34investors. Uh but for now I do just want
- 34:38to show the basics here. So when it
- 34:40comes to the basics you can go up here
- 34:41to the upper left corner and just search
- 34:44for a company. So let's for example
- 34:46search for Nvidia. And what you want to
- 34:48do when you search for any company is
- 34:50that you want to you know you want to
- 34:52search for the ticker symbol and the
- 34:54ticker symbol for Nvidia is NVDA. So we
- 34:57search for that and then we click on the
- 34:59top right here. Now you can see that you
- 35:01will get this you know nice and clean
- 35:04summary of Nvidia. So first of all you
- 35:07get you know the price and what you also
- 35:09can see right here is that the the
- 35:10pre-market. So the Nvidia stock is
- 35:13actually trading even before the market
- 35:15is open and and as you can see the data
- 35:17is changing all the time. It's basically
- 35:20live data on all of these things. And
- 35:23here on this tab you get a very nice
- 35:25overview. Uh this right here you can see
- 35:28it has a measurement of fair value. Fair
- 35:31value is something very important when
- 35:33it comes to fundamental analysis and we
- 35:35will take a look at that soon later on
- 35:36in this course. But here you can also
- 35:39scroll down and get a quick overview
- 35:41here with some bullish and bearish
- 35:44things. So for example, you can see here
- 35:46that the stock has raised uh its
- 35:48dividend for three years in a row. You
- 35:51can see that analysts anticipate the
- 35:53sales for Nvidia to grow over time and
- 35:56it's also trading at a low PE ratio.
- 36:00Don't worry if you don't know what a PE
- 36:02ratio is. Later on in this course, we
- 36:04will also learn some of the most
- 36:06important financial metrics that you
- 36:08really need to know. But here you can
- 36:10also see here's a bearish uh signal. And
- 36:14one bearish thing about Nvidia is that
- 36:16the movements are volatile. That
- 36:19basically means that the chart is going
- 36:21up and down a lot around its moving
- 36:23average. That is basically what
- 36:25volatility what volatility is. Uh but
- 36:30yeah, as you can see, you have all of
- 36:31these most important data summarized in
- 36:34a very very clean way. If we scroll down
- 36:37here, you can also see the most
- 36:39important news. I'm recording this
- 36:40video. It's right now 256 p.m. here in
- 36:44Sweden. And as you can see here, we have
- 36:45news, you know, uh for example,
- 36:47Microsoft to fund Mistrol was news that
- 36:50came out just 20 20 minutes ago. So, you
- 36:53get really the most recent news here as
- 36:56well. But yeah guys, if you want to
- 36:58follow along while I use investing pro
- 37:00throughout this video, you know, we will
- 37:02use it a lot later on as well. I do
- 37:04actually have a special link down in the
- 37:07description and the pin comment that you
- 37:09can use to get investing pro. Uh I have
- 37:12managed to get you know the best
- 37:13possible discount which is right now I
- 37:16think it's 50% and then 15% on top. So
- 37:20around 65% off in total. So, I highly
- 37:24recommend, you know, have your investing
- 37:26pro on maybe a second screen, have the
- 37:29course on the main screen so that you
- 37:31can follow along during the course and
- 37:33really learn how to get the most out of
- 37:35this platform. All right, so now it's
- 37:38time to take a look at the key financial
- 37:40ratios that every investor should know.
- 37:44These are basically mathematical
- 37:46formulas that can help you analyze how
- 37:49much a company is actually worth. And
- 37:53here I want to start by taking a look at
- 37:54four of the most common ratios that you
- 37:57have probably you know if you're
- 37:59interested in investing already you have
- 38:01probably already heard about them. But
- 38:03here the very first ratio we need to
- 38:04learn about is called the PE ratio. And
- 38:08PE here simply stands for price to
- 38:12earnings. And the reason for this is
- 38:14that the PE ratio is calculated by
- 38:18taking the price of a stock and we
- 38:22divide it with the earnings per stock.
- 38:26So we divide it with the earnings per
- 38:29share. And I would say that the easiest
- 38:30way to think about the PE ratio is to
- 38:33think about it like this. Look at this
- 38:35window right here. You should think
- 38:37about it as how much do you pay for $1
- 38:42of profit. So, as an example, if let's
- 38:45say that the price here per stock is $10
- 38:49and the earnings per share, or in other
- 38:52words, the earnings, you know, for one
- 38:56stock is $1. That means that in simple
- 39:00terms, you pay $10 to get $1 of
- 39:05earnings. But now, in order to get this
- 39:07calculation, you might of course wonder
- 39:09what is EPS or earnings per share? And
- 39:12here as I said EPS stands for earnings
- 39:14per share. And to get it you simply take
- 39:17the total profit of the company and you
- 39:21divide it with the numbers of share.
- 39:24Because if you take the total uh the
- 39:27total profit and you divide it with how
- 39:30many shares you h have then you will get
- 39:32how much profit you get per share. So
- 39:36this is simply what the EPS is. Uh the
- 39:39next metric you need to have in mind,
- 39:41this is maybe not as relevant nowadays
- 39:44because many uh companies use something
- 39:47known as buybacks and they reinvest
- 39:49their profits and so on and so on. But
- 39:51dividend yield here is basically the
- 39:53yearly cash payouts as a percentage of
- 39:58the price. So this is when uh when a
- 40:00company you know pays out cash directly
- 40:04to investors. But as I said, many times
- 40:06this is not the case because many times
- 40:09a company would be more profitable if
- 40:12they instead of handing out the cash to
- 40:15investors like me and you, they put the
- 40:18cash back into the business so they can
- 40:20grow the revenue even faster in the
- 40:24future. And this right here leads to the
- 40:26next metric we need to know about and
- 40:28that is revenue growth. Or in other
- 40:31words, it's simply how fast the business
- 40:34is growing. But right, so now you might
- 40:37of course wonder, you know, where do I
- 40:38find all of these financial metrics and
- 40:42as always there there's always the
- 40:44opportunity to of course, you know, make
- 40:46all of these calculations yourself. So
- 40:49you can go to the company's site. For
- 40:51example, if we take Nvidia as an
- 40:54example, once again, you can go to
- 40:55nvidia.com and download the earnings
- 40:58reports and make all of these
- 40:59calculations or you can use a pre-built
- 41:03tool that has all of these calculations
- 41:05for you. So, for example, I'm using
- 41:08investing pro right here. So, what we
- 41:10can do is that we can simply search for
- 41:12um Nvidia. So, what we do here is that
- 41:14we open up Nvidia and we can find the
- 41:17financial metrics in multiple ways.
- 41:20First of all, you can see that if we
- 41:21just open Nvidia up right here and we
- 41:23scroll down a bit here, you can see that
- 41:25we have the data explorer type. And here
- 41:29you can see that we have, you know, some
- 41:30key metrics like for example the
- 41:33revenue, the dividend yield, the PE
- 41:36ratio that we talked about earlier. We
- 41:38also have a metric called uh price to
- 41:40book which is basically when you take
- 41:42the the full price of the company and
- 41:45you divide it with the book value. And
- 41:48you can basically think about the book
- 41:49value as the sort of tangible value that
- 41:52the company has. So it includes things
- 41:55like you know uh machines uh buildings
- 41:59but also nowadays it includes digital
- 42:02digital kinds of value as well. But no,
- 42:04if you want to dive even deeper into the
- 42:06data, remember here that Investing Pro
- 42:09has institutional grade data of more
- 42:13than or around 70,000 different stocks.
- 42:16And there are so much to dive into, but
- 42:18you can go here to the data explorer and
- 42:21then you choose the companies. So, as
- 42:22you can see right now, we have Nvidia
- 42:24chosen right here. And as you can see,
- 42:26you can search for any metric for
- 42:29Nvidia. All of these metrics are
- 42:32automatically calculated. So for
- 42:34example, let's say we want to search for
- 42:36the PE ratio. We simply type in PE
- 42:39ratio. And you can see that here on the
- 42:40top we have the normal PE ratio. But you
- 42:43also have many other sort of uh other
- 42:46types of PE ratio. For example, you can
- 42:48choose the average PE ratio for the last
- 42:5110 years, the last five years. You can
- 42:54also use a metric right here which is
- 42:56the PEG ratio. This is basically a uh PE
- 43:00ratio that also take growth into account
- 43:04and there are so so many metrics right
- 43:06here. So it can feel overwhelming in the
- 43:09beginning. But what I highly recommend
- 43:11is to start with the very basics. Start
- 43:13with learning uh the four metrics I
- 43:15talked about. And let's let's keep it
- 43:17basic and just open up the normal PE
- 43:19ratio right here. Now when we open up
- 43:23the P ratio tab, you have a few, you
- 43:25know, interesting things. So first of
- 43:28all right here you can see that you get
- 43:30a basic definition of what PE ratio is.
- 43:33It indicates the multiple of earnings
- 43:35that stock investors are willing to pay
- 43:38for one share of the firm. And here you
- 43:41get also of course the mathematical
- 43:44definition. Uh but even more
- 43:45importantly, one of the most interesting
- 43:47tabs is the analysis tab right here
- 43:50because here you can see that how the PE
- 43:52ratio for Nvidia has moved uh you know
- 43:56over the past. And remember here that PE
- 44:00ratio is actually the lower PE ratio we
- 44:04have the better because the the lower
- 44:07the PE ratio the less we have to pay for
- 44:10$1 of profit. That is a good way to
- 44:13think about it. But it's way too
- 44:15simplistic to only analyze the PE ratio
- 44:18because when you only look at PE ratio,
- 44:20you don't take the earnings growth into
- 44:23account. So that is what why one metric
- 44:26that can be much more useful especially
- 44:29for companies that are growing fast is
- 44:32the PEG ratio because as you can see if
- 44:35we type in PEG ratio right here you can
- 44:39see that this is a huristic a heristic
- 44:43is bas basically a rule of thumb that
- 44:45used to measure the level of earnings
- 44:47growth reflected in the market price. So
- 44:50here you can see that the PEG ratio
- 44:52takes the PE ratio divided by the
- 44:54trailing earnings per share growth rate
- 44:57and here you can see the analysis and
- 45:00the interpretation is pretty similar to
- 45:03the PE ratio but here you can see that
- 45:05the price to earnings to growth ratio is
- 45:08more closely around CRO and in general a
- 45:12good uh PEG ratio you want as close to
- 45:16zero as possible but you don't want it
- 45:18to be negative because you know when
- 45:20it's negative it usually indicates that
- 45:22either the growth is negative or the or
- 45:26the earnings is negative. So you want it
- 45:28below one uh and above zero and as close
- 45:31to zero as possible. But as I said guys
- 45:34when it comes to financial metrics this
- 45:36can we can probably make a full course
- 45:39on only the financial metrics alone. As
- 45:43you can see right here, there are just
- 45:45so so many metrics. Like there are like
- 45:47an inf infinite amount of metrics uh
- 45:50that you can dive into. But as I said,
- 45:52don't feel don't feel overwhelmed by it.
- 45:55Using a platform like investing pro
- 45:58really really makes everything about you
- 46:00know analyzing stocks much more easier
- 46:02because you have all these ratios you
- 46:04know calculated for you and as I said
- 46:06you have all companies available. We can
- 46:09even look at, let's say, you know, a new
- 46:11comp company like SpaceX that actually
- 46:14got listed on the stock market just like
- 46:17uh a month ago, Elon Musk's space
- 46:19company. And as you can see, we can, for
- 46:21example, look at SpaceX right here. We
- 46:23can scroll down a bit here. And here we
- 46:25have the data explorer. We can see the
- 46:27revenue, the dividend yield, the PE
- 46:29ratio, and so on and so on. But right,
- 46:32so now it's time to switch the attention
- 46:35and take a look at the most important
- 46:37question we can ask as investors and
- 46:41that is of course what is a stock
- 46:44actually worth? One common quote you
- 46:47might have heard is that price is what
- 46:50you pay and value is what you get. Or in
- 46:54other words, if you take a look at this
- 46:56image right here, you want to try to buy
- 47:00an asset like a stock below what is
- 47:04called the fair value of the stock. And
- 47:08we definitely don't want to buy above
- 47:11the fair value. Uh but now you might not
- 47:14know what a fair value is. Don't worry,
- 47:16we will talk about that super super
- 47:17soon. But first of all a very important
- 47:20principle you need to learn about is
- 47:22that a great company the company can be
- 47:24the best company in the world. It can be
- 47:26Nvidia. It can be Apple. It can be an
- 47:29amazing company but it can still be a
- 47:31bad investment if the price is wrong. So
- 47:35for example if you take a look at SpaceX
- 47:38recently in many many ways that is a
- 47:41super impressive company. you know, it's
- 47:43pretty much the only space company in
- 47:45the world that can have a high frequency
- 47:48of, you know, putting things up in
- 47:50space. That is completely amazing. But
- 47:53the question, you know, many investors
- 47:55are asking is, is SpaceX really worth
- 47:59the price uh it is at? I think it was,
- 48:03you know, IPOed at around, I think maybe
- 48:05$1.5 trillion and it went above $2
- 48:09trillion while actually not making a lot
- 48:12of money. So many many investors were
- 48:15super skeptical about the price and
- 48:17since then it has actually dropped below
- 48:20um you know far below uh you know that
- 48:23valuation. So it still remains to be
- 48:25seen if SpaceX actually can generate the
- 48:28revenue to sort of protect that
- 48:30valuation. But that is just a super, you
- 48:32know, clear example of why the fair
- 48:35value is so important. And a fair value
- 48:38is simply an estimate of what the stock
- 48:42should actually cost. And the goal as an
- 48:46investor if you're stock picking is
- 48:48buying below fair value because this
- 48:52gives you a margin of safety. And the
- 48:55margin of safety here is simply the fair
- 48:58value minus the buying price. As you can
- 49:01see on I hope you can see. Let me delete
- 49:04this. I hope you can see on the image
- 49:06right here. It's simply the fair value
- 49:08here minus the buying price. And that is
- 49:10the margin of safety. So we want as high
- 49:14margin of safety as possible. And here
- 49:17when it comes to calculating the fair
- 49:19value of a company, once again this is
- 49:22something you of course can do on your
- 49:24own and there are many different sort of
- 49:28formulas we can use to calculate fair
- 49:30value. But once again this process gets
- 49:33much more simple if you use a pre-built
- 49:37tool. And as I have been using
- 49:39throughout this course I will be
- 49:41continue to use uh investing pro for
- 49:43this. And as I said, if you want to
- 49:45follow along, I do have a special link
- 49:47down in the description and the pin
- 49:49comment. But let's once again, let's go
- 49:51to our favorite company for now, which
- 49:53is Nvidia. I'm trying to use it, you
- 49:55know, throughout the course. So, we get,
- 49:57you know, a clear red thread throughout
- 50:01the course here. So, let's open up
- 50:02Nvidia.
- 50:04And if you look here, you can see that
- 50:06we have a box called fire value. And you
- 50:10can see here that the average calculated
- 50:13fair value according to this formula is
- 50:17256.
- 50:19But if you look right here, you can see
- 50:20that we can see the live prices. You
- 50:22know, the prices changes all the time.
- 50:24Right now it's 200 205.84.
- 50:28But this price now changed to 205.85.
- 50:30You can see the prices changes all the
- 50:32time. But you can see here that we have
- 50:34a large difference between the current
- 50:37price and the fair value. And according
- 50:40to this estimation, we now have 24.7%
- 50:45upside. So according to the fair value,
- 50:47Nvidia should be worth 256
- 50:51around there. So we have a nice buying
- 50:53opportunity according to the fair value.
- 50:55But now if you are a sort of if you are
- 50:59skeptical when you hear things like
- 51:00that, which you always should be, you
- 51:03should always be skeptical and verify,
- 51:05you know, verify the things yourself.
- 51:08You should ask the question you know
- 51:10where does the fair value come from and
- 51:12luckily you can see exactly how
- 51:14investing pro calculates their f fair
- 51:17value. So here you can see that the
- 51:19investing model
- 51:21that investing pro uses is is basically
- 51:25based on all of these financial metrics.
- 51:28Remember earlier in the course we
- 51:30learned about financial metrics like the
- 51:33PE ratio. You already know what the PE
- 51:35ratio is. uh for example the price to
- 51:38sales is a very similar ratio that is
- 51:40when we take the price divided by the
- 51:42sales instead of the earnings and so on
- 51:44and so on and if you really want to
- 51:47understand where the fair value comes
- 51:49from I actually recommend to learn about
- 51:51all of these metrics it might sound
- 51:53complicated right now but many of these
- 51:56metrics are just multiples of the same
- 51:58thing and another thing is that you
- 52:00don't have to learn this you have you
- 52:02can take the the fair value for what it
- 52:06is at least for now because we do have
- 52:09other ways to calculate the fair value
- 52:11as well. One very simplified way to
- 52:15calculate the fair value is that you can
- 52:16use other analyst targets. So you can
- 52:20see that here this is a number based on
- 52:23analyst targets. So these are other you
- 52:26know professional investors and what
- 52:29they uh expect Nvidia to be to be worth.
- 52:32So you can see that the analyst actually
- 52:34believe that Nvidia is worth even more
- 52:38than what the model uh expects. So you
- 52:40can see that the analyst here say that
- 52:42Nvidia should be worth around around
- 52:45three $300 US. So if you want to you can
- 52:48maybe combine both of these these so
- 52:51both the analyst target and the
- 52:53investing models and say that yeah maybe
- 52:55the price should be around 275
- 52:58if we use both the calculated fair value
- 53:00as well as the analyst target. But now
- 53:03let's quickly take a look at another
- 53:05company because I do want to take a look
- 53:07at a more controversial company which is
- 53:10you know Tesla. Uh so let's open up
- 53:12Tesla right here. And as you know Tesla
- 53:16has for a long time been criticized for
- 53:18being you know valued too high. And here
- 53:23very very interesting interestingly we
- 53:26can see that if we look at the fair
- 53:28value according to the model remember we
- 53:30still have all the calculations for the
- 53:32model right here. You can see that the
- 53:35fire value of Tesla according to this
- 53:37model is 276
- 53:40which is actually way below the current
- 53:44price of 379.
- 53:47However, if you look at analyst targets,
- 53:50you can see that the target is at around
- 53:53425.
- 53:55So, it should probably be adjust
- 53:57adjusted a little bit to the upside. So
- 54:00if you are in investing purely on a fair
- 54:04value model in simple terms Nvidia looks
- 54:08to be a better investment than Tesla.
- 54:10But when it comes to Tesla there are
- 54:12many things that are hard to me to to
- 54:15measure that makes the company valuable.
- 54:17And the most simple thing when it comes
- 54:20to the valuation of Tesla which is hard
- 54:22to measure is because of the CEO Elon
- 54:26Musk. the market simply values or this
- 54:29is my opinion the market simply values
- 54:31Tesla more because of Elon Musk and his
- 54:34track record. So let's say that Elon
- 54:37Musk you know stop being the CEO of
- 54:39Tesla. He stops working for Tesla. Then
- 54:42I would expect the company to drop down
- 54:45a lot. Maybe it would actually drop down
- 54:48to the fair value. If it drops down to
- 54:51the fair value then we can say that yeah
- 54:53the sort of the sort of extra factor
- 54:55that that made Tesla you know having we
- 54:58call it to have up premium what made
- 55:00Tesla have the premium was actually Elon
- 55:02Musk himself. So one important lesson
- 55:05from this is that yes fair value is a
- 55:08very useful tool but there are some
- 55:11things that is not included in the model
- 55:14right so for example if you scroll down
- 55:16here we can see that Elon Musk is not
- 55:18included in the model. So that is you
- 55:20know one of these things that are really
- 55:22hard to measure.
- 55:25All right. So now it's time to take a
- 55:26look at how to analyze the health of a
- 55:30company in order to decide if you know
- 55:33you should buy or sell a stock. It's
- 55:35very important to be able to analyze you
- 55:37know how is the company actually looking
- 55:40under the hood. So for example how is
- 55:43the depth looking? How is the cash flow
- 55:46looking? And so on and so on. how is the
- 55:47profit profitability and to do this we
- 55:51can actually measure something known as
- 55:52a health score. So a health score is a
- 55:56metric that combines things like
- 55:58profitability as I said growth cash flow
- 56:01very important cash flow how how much
- 56:04cash is actually flowing in and out of
- 56:06the company and also debt here and the
- 56:09health score can be used as a very you
- 56:12know first filter so you can quickly get
- 56:16a glance over the company. So how is the
- 56:18company company you know looking at a
- 56:21sort of broad lens and then if you want
- 56:23to you can of course dive deeper into
- 56:26the actual numbers and when it comes to
- 56:28looking at the specifics there are a few
- 56:30warning signs that you really need to
- 56:32look out for and one of the most classic
- 56:35warning signs is that if we have both a
- 56:38high debt and we also have a falling
- 56:41cash flow that is a strong warning sign
- 56:42because that is an indication that we
- 56:45might not be able to pay back our debt
- 56:47if our cash goes down and if our, you
- 56:49know, depth is high, how will we be able
- 56:52to pay back that depth? But as I said,
- 56:55if you look at this image right here, we
- 56:57have a health score here and it looks
- 56:59like a measurement like this. And now
- 57:01let's jump back into investing pro. All
- 57:04right. So now we are once again back
- 57:06here in investing pro. And I once again
- 57:10want to emphasize because every time I
- 57:12use indust pro, I want to emphasize that
- 57:14all of this can be done completely for
- 57:17free. The only difference is that it
- 57:19takes, you know, a lot of more time to
- 57:21do all of these calculations yourself.
- 57:23But investing is really one of these
- 57:25things that if you have the time, you
- 57:26can do all of these things for free. But
- 57:29if you, you know, don't have the time to
- 57:32dive super deep into everything and do
- 57:34the calculations, you can use a
- 57:36pre-built tool like investing pro. And
- 57:39to uh now let's once again let's go back
- 57:42here to Nvidia that we have used
- 57:44throughout the course. And if you scroll
- 57:46down here, you can see that one amazing
- 57:49thing about investing pro is that it
- 57:51also has a tab here for the financial
- 57:55health. So you can see here that the
- 57:58financial health for Nvidia is
- 58:00determined by ranking the company on
- 58:02over 100 factors and it compares these
- 58:07factors in the information technology
- 58:11sector. So it looks how good is Nvidia
- 58:14compared to you know similar companies.
- 58:17So that is super super important and you
- 58:19can see here that overall Nvidia is
- 58:21ranked you know the ranking goes from
- 58:23one to four and it's ranked four on most
- 58:25metrics. So four on growth health, four
- 58:28on price momentum. It's very very
- 58:30profitable here on five. Uh but it's
- 58:32ranked two here on relative value. But
- 58:35if you only look at one thing here, you
- 58:36can look at that the overall score is
- 58:39excellent. It's very very in a very very
- 58:42sort of financially healthy state. And
- 58:45if you want to dive even deeper, you can
- 58:46click here on health details. And there
- 58:49are, you know, so much to dive into. As
- 58:51I said, it's based on 100 metrics and
- 58:54you can, you know, dive super super deep
- 58:56into this. But unfortunately, we don't
- 58:58really have time to dive into all of
- 58:59these all of these measures in this
- 59:03video. But if you are a nerd like me,
- 59:05there are so much there are so much
- 59:07depth in this platform. For example, if
- 59:10you want to dive super deep and have a
- 59:12like professionalgrade report, you can
- 59:14click uh right here where it says Nvidia
- 59:17Pro Research and you will open up this
- 59:19full report on Nvidia and you can really
- 59:22really you know dive deep into the
- 59:24numbers. All right, so now it's finally
- 59:27time to take a look at one of the
- 59:29highlights of the course because this is
- 59:31a very very practical section of the
- 59:34course. This is how we can actually copy
- 59:37famous investors like for example you
- 59:41know Warren Buffett or maybe you want to
- 59:44co copy famous investors like Ray Dalio
- 59:48and so on and so on. This is really
- 59:50really magical and one sort of aha
- 59:53moment that many of you guys might not
- 59:55know is that these are actually public
- 59:59portfolios. So Warren Buffett and Ray
- 1:00:01Dalio has to report uh what they are
- 1:00:04holding. So if you want to, you can
- 1:00:06simply just copy what they are doing.
- 1:00:08But I want to give one warning sign
- 1:00:10right away is that I usually don't
- 1:00:12recommend to just blindly copy exactly
- 1:00:16what uh you know people are doing. And
- 1:00:19the reason for this is that I think you
- 1:00:21should at least have an understanding of
- 1:00:23what you are holding because an investor
- 1:00:25like Warren Buffett, he might buy a
- 1:00:27stock for one reason and you might not
- 1:00:30agree with that reason. You know, he has
- 1:00:32been investing for, you know, maybe 80
- 1:00:35years now. So he will have completely
- 1:00:37different goals uh than you might have.
- 1:00:40Maybe Warren Buffett right now just want
- 1:00:42to keep his wealth. Maybe he doesn't
- 1:00:44want to grow it as fast anymore. So you
- 1:00:46want to understand you know the reason
- 1:00:48behind behind the investors and then if
- 1:00:51you decide that they have the same you
- 1:00:54know motivations and may maybe the same
- 1:00:56past performance as you then you can
- 1:00:58just copy their portfolios if you want
- 1:01:00to. But here as I said the portfolios of
- 1:01:03legendary investors are public and just
- 1:01:06two examples of investors you can copy.
- 1:01:08As I me as I mentioned you can cope with
- 1:01:10Warren Buffett which is known for owning
- 1:01:13quality businesses for a long long time.
- 1:01:16Another super you know famous investor
- 1:01:19you probably heard about it heard about
- 1:01:21him it's Ray Dalio and he's known for
- 1:01:25more diversification and he basically I
- 1:01:28would I would call him a macro investor.
- 1:01:30So he looks at he usually zooms out a
- 1:01:33lot and look at the big picture and
- 1:01:35invests based on that. So he has a
- 1:01:38diversification across assets and
- 1:01:40economies. And as I briefly mentioned,
- 1:01:44you want to study the reasoning behind
- 1:01:46the picks. And this is maybe a little
- 1:01:48bit too harsh of an advice, but never
- 1:01:52blindly copy them. You can copy them,
- 1:01:54but don't just go in blind and fully
- 1:01:56copy them. And here to find other
- 1:01:59investors portfolios is super super
- 1:02:02simple inside investing pro. Uh all you
- 1:02:04need to do here is that you go to the
- 1:02:06ideas tab right here and then as you can
- 1:02:10see you have tons of different
- 1:02:12portfolios and you can see exactly how
- 1:02:14they have performed. You can see exactly
- 1:02:16what is inside the portfolios and so on
- 1:02:19and so on. So one of the most common one
- 1:02:21is of course Warren Buffett. So all you
- 1:02:24need to do here is that you can search
- 1:02:25for an investor. Let's just say we
- 1:02:26search for Warren uh Buffett and here
- 1:02:29you have Warren Buffett's portfolio. So
- 1:02:31you can just click right there and here
- 1:02:34you have a nice summary of all uh Warren
- 1:02:37Buffett's stocks. So if you scroll down
- 1:02:39here you can see all the stocks here
- 1:02:41that Warren Buffett is holding. And here
- 1:02:43one very interesting thing about
- 1:02:46Warren's investing that might be a
- 1:02:48little bit counterintuitive
- 1:02:49is that as you will see the top holdings
- 1:02:52like Apple, American Express and
- 1:02:54Coca-Cola they actually take up a very
- 1:02:58large amount of the portfolio. The top
- 1:03:00three stocks here are almost like 50% of
- 1:03:05his whole portfolio. And this is one
- 1:03:07thing you will notice about successful
- 1:03:09invest investors is that they are are
- 1:03:11often not super diversified. Many times
- 1:03:15they will actually be very concentrated.
- 1:03:18And that is because in order to beat the
- 1:03:20market, in order to perform better than
- 1:03:22the market, you usually need to focus on
- 1:03:25the few companies where you actually
- 1:03:27have an edge, where you think that you
- 1:03:30know actually know something better than
- 1:03:32the market. And it's impossible to to
- 1:03:34know you know uh maybe it's impossible
- 1:03:38to know everything about 500 stocks. So
- 1:03:41it's better to focus on few stocks that
- 1:03:44you really really think will beat the
- 1:03:46market. But as I said by focusing on few
- 1:03:50stocks it you will also have more risk
- 1:03:53but the best investors will get more
- 1:03:55reward by doing like this. And here as I
- 1:03:59said we can look at other people's
- 1:04:01portfolios. So once again we can can go
- 1:04:03back here to the ideas tab in investing
- 1:04:06pro. We can go here and search for maybe
- 1:04:08Ray Dalio. And just like that you can
- 1:04:10see Ray Dalio's portfolio appears right
- 1:04:12here. We can see exactly what Ray Dalio
- 1:04:15is holding. as you can see, holding a
- 1:04:16lot of Nvidia. Um, but we can go back to
- 1:04:20the ideas tab as well. And if you want
- 1:04:21to, you can go down here and filter on
- 1:04:25what type of portfolios you want to see.
- 1:04:28Maybe you only want to look at
- 1:04:29billionaires, then you can press right
- 1:04:31here and all of the billionaire
- 1:04:33portfolios will appear and so on and so
- 1:04:35on. But yeah, as I said, if you want
- 1:04:37access to all of these billionaires uh
- 1:04:40portfolios and if you want to follow
- 1:04:42along, you know, throughout the rest of
- 1:04:43the course, we're actually soon going to
- 1:04:45talk about some of the pre-built AI
- 1:04:48investing strategies as well as the uh
- 1:04:51Warren AI. Uh if you are interested in
- 1:04:54this, I do have the special link to
- 1:04:55Investing Pro uh down in the description
- 1:04:58and pin comments.
- 1:05:00But right so now then now it's time to
- 1:05:03take a look at how to build your own
- 1:05:06portfolio. So what are the core
- 1:05:08principles of building a great mix of
- 1:05:11stocks that will make money while you
- 1:05:14sleep? And here the first key concept
- 1:05:18that you need to learn about is
- 1:05:20diversification. And the principle here
- 1:05:22is simple. You want to spread your money
- 1:05:24across companies, sectors and preferably
- 1:05:28even companies. Why is this? Well, you
- 1:05:31might have heard uh of the saying that
- 1:05:33you don't want to put all your eggs in
- 1:05:36the same basket because if you drop the
- 1:05:38basket, you know, all the eggs get
- 1:05:40destroyed. And the same thing is true
- 1:05:42here with investing. So, let's say that
- 1:05:44you believe that AI is the future and
- 1:05:47you are really really interested in
- 1:05:49investing in the building of the
- 1:05:51infrastructure needed for AI. The
- 1:05:55problem here is that this might be a
- 1:05:57super good investment, but let's say
- 1:05:59that you only buy, you know, one AI
- 1:06:02company. You bet all your money in one
- 1:06:04AI company. Your uh thesis that AI is
- 1:06:08the future might be correct. uh just as
- 1:06:11how you know during the you know when
- 1:06:14internet got started during the dotcom
- 1:06:16bubble in around year 2000 you know many
- 1:06:20companies actually went completely to
- 1:06:22zero completely bank bankrupt even
- 1:06:25though internet really became the future
- 1:06:29so you can be you can be super right but
- 1:06:32if you invest in only one company you
- 1:06:34have the risk of losing all your money
- 1:06:37so that is why it's so important to
- 1:06:39spread your risk
- 1:06:40So this is what I'm trying to show with
- 1:06:42this image right here. Preferably you
- 1:06:45want to spread your risk here between
- 1:06:47different industries and even you know
- 1:06:49different uh different countries. So for
- 1:06:52example for me I'm from Sweden. I own
- 1:06:54both stock you know Swedish stocks but I
- 1:06:57also own a lot of stocks in the US. Uh I
- 1:07:00personally I even own you know
- 1:07:02cryptocurrency and so on and so on. And
- 1:07:04here a simple rule of thumb especially
- 1:07:06if you are a beginner is to keep any
- 1:07:09single stock under around 5 to 10% of
- 1:07:13your portfolio. Of course this is not a
- 1:07:16rule that you have to follow. For
- 1:07:17example, remember what we looked at
- 1:07:19earlier uh Warren Buffett currently
- 1:07:22holds 22% of his capital in Apple. So
- 1:07:25this is definitely not a rule you must
- 1:07:27follow, but it's a very good uh rule
- 1:07:30especially for beginners. And here
- 1:07:32another very useful strategy is
- 1:07:34something known as dollar cost averaging
- 1:07:37or for short DCA. And this is basically
- 1:07:40when you invest a fixed amount every m
- 1:07:43every month. So this is basically that
- 1:07:45you automatically buy more when prices
- 1:07:48are low. And to show you guys the reason
- 1:07:50why dollar cost averaging or DCA is so
- 1:07:54so useful, let's actually jump into
- 1:07:57Trading View here. So, Trading View is
- 1:08:00the platform I use for all my charting.
- 1:08:03Uh, as you guys know, we have lots of
- 1:08:05trading content here on the channel and
- 1:08:06Trading View is the platform I use for
- 1:08:08all for all of that. Uh, but nowadays,
- 1:08:11it also has, you know, lots of
- 1:08:12fundamental analysis tools. And if you
- 1:08:16want a sort of free alternative to
- 1:08:18Investing Pro, you can actually check
- 1:08:20Trading View out because it does have a
- 1:08:22good free version. Uh, and I also have a
- 1:08:25link to Trading View in the description
- 1:08:27and the comments. Um, but here to show
- 1:08:30you guys why DCA is so so important.
- 1:08:34Let's look at this chart right here. If
- 1:08:37you buy, let's say, every every month,
- 1:08:40let's actually switch this to a monthly
- 1:08:43uh monthly time frame. That means that
- 1:08:46on every candle right here, you buy,
- 1:08:48which means that you buy down here, but
- 1:08:51you also buy up here, but you also buy
- 1:08:54down here, and you also buy up here, you
- 1:08:56also buy down here, and so on and so on.
- 1:08:58So instead of having the risk at buying
- 1:09:01at the exactly wrong place, let's say
- 1:09:03that you put all your life savings in up
- 1:09:06here, you put in everything you own uh
- 1:09:09up here. And for some reason, I'm
- 1:09:11definitely not saying that this is going
- 1:09:12to happen, but let's say that we have a
- 1:09:14brutal crash like we had right here.
- 1:09:17Let's say we get a brutal crash. That
- 1:09:19would be so so unlucky to enter all of
- 1:09:21your money and then losing maybe, you
- 1:09:23know, 20% of it. Maybe losing all of it.
- 1:09:26But if you instead if this crash instead
- 1:09:28comes like this but you invest you know
- 1:09:31all the way down. So you invest right
- 1:09:33here right here right here right here
- 1:09:35right here right here then you can see
- 1:09:37that your risk is much more spread out.
- 1:09:40You will basically get an average price
- 1:09:42instead of risking buying at the top.
- 1:09:45And now if you want to build a portfolio
- 1:09:48my favorite tool for this is to actually
- 1:09:50use the watch list here inside investing
- 1:09:53pro. So to use the watch list you you
- 1:09:56can do it in many ways. The most simple
- 1:09:59way to use it is to simply add companies
- 1:10:01you are interested in you know manually.
- 1:10:03So you can click add a company right
- 1:10:04here. And let's say that we want to add
- 1:10:06you know Nvidia uh let's say that that
- 1:10:09we also want to add uh Tesla maybe you
- 1:10:12know uh Apple and so on and so on. So we
- 1:10:15can add these three companies and just
- 1:10:17like that it appears here in the watch
- 1:10:19list. You can see the live price
- 1:10:20movements. You can see here the fair
- 1:10:22value, how much upside and downside they
- 1:10:24have, and all of the health metrics we
- 1:10:26have been talking about in this course.
- 1:10:28You also have metrics on risks, returns,
- 1:10:30efficiency, projections, health, and so
- 1:10:32on and so on. But this right here is
- 1:10:34just one way to add things to your watch
- 1:10:38list. Another way you can you can do is
- 1:10:40that you can actually go to the ideas
- 1:10:42tab and let's say that you want to focus
- 1:10:44on the exact same things that Ray Dalio
- 1:10:46is focusing on. Then you can see that
- 1:10:48you can just go up here and click copy
- 1:10:51to watch list. So you can import all of
- 1:10:54these stocks to a new watch list. You
- 1:10:56can press yes right here. And just like
- 1:10:59that, you can see that we have Radalio's
- 1:11:02full portfolio here. All of the
- 1:11:03companies that Ray Dalio has is now in a
- 1:11:06watch list. So now, as you can see, we
- 1:11:08have two watch list right here. We have
- 1:11:09the first one, which is just called my
- 1:11:11watch list for now. We can rename it to
- 1:11:14be let's just call it maybe main watch
- 1:11:16list and click save right here. So we
- 1:11:19know that this is our main watch list
- 1:11:20and then we also have radalio. But
- 1:11:22another way we can use uh you know we
- 1:11:26can build up our watch list is to
- 1:11:27actually use the builtin AI tool. We can
- 1:11:30for example say find the best the best
- 1:11:34stocks based on fair value financial
- 1:11:38health and momentum.
- 1:11:42>> [clears throat]
- 1:11:42>> They should be a top 100 US company
- 1:11:48based on market cap. And just like that,
- 1:11:51we can just ask the AI to do this
- 1:11:54analysis for us. And we need to wait a
- 1:11:57little bit here and we will be right
- 1:11:59back soon when the analysis is done. All
- 1:12:02right. All right. So now the analysis is
- 1:12:05done and at the top here you get a very
- 1:12:07nice summary. You can see summary.
- 1:12:09Nvidia, Microsoft and Amazon lead the
- 1:12:12pack of the top US giants combining over
- 1:12:1520% fair value and then you get a little
- 1:12:19snapshot right here. You can see a
- 1:12:22rating of the financial health and you
- 1:12:24can also see the fair value upside right
- 1:12:27here. So for example, you can see that
- 1:12:29for example Adobe has a fair value
- 1:12:31upside of 72% and so on and so on. So,
- 1:12:34what you can see, my camera is a little
- 1:12:36bit in on the in the way. So, I'm going
- 1:12:38to take away my camera. But you can see
- 1:12:40that you get suggested uh pics, stock
- 1:12:43pics down here in the bottom right
- 1:12:44corner. So, let's say that you are
- 1:12:46interested in, let's say we want to add
- 1:12:48the three pics uh we got right here. So,
- 1:12:51we want to add, you know, uh Amazon. So,
- 1:12:54we add it to watch list and we want to
- 1:12:56add Microsoft to watch list. Let's also
- 1:12:58maybe add Adobe because as you can see
- 1:13:00Adobe had, you know, 72%
- 1:13:04fair value upside. We can also press the
- 1:13:06star here to automatically add it to our
- 1:13:08watch list. And now if we go back to the
- 1:13:11watch list here, you can see that all of
- 1:13:13the stocks suggested by the AI is now in
- 1:13:17the watch list. Another cool thing with
- 1:13:19Warren AI, if you really like to look at
- 1:13:21charts as well, which I really love to
- 1:13:24do, is that you can simply press on the
- 1:13:25stock right here. And just like that,
- 1:13:27you will also have an, you know, builtin
- 1:13:30chart. And I know this is not a
- 1:13:33technical analysis video, but you do
- 1:13:35have, you know, pretty much most of the
- 1:13:37technicals that we have in trading view.
- 1:13:38So you can, for example, use, you know,
- 1:13:40a Fibonacci retracement to, for example,
- 1:13:42you can see this one is currently almost
- 1:13:43at the 0.618 level right here. We can
- 1:13:46add indicators like the MACD if we want
- 1:13:49to and so on and so on. So you can
- 1:13:50basically basically here have a workflow
- 1:13:52where you have your chart to the right
- 1:13:55and you have your AI uh Warren AI AI
- 1:13:59here to the left. But yeah guys, I'm
- 1:14:01sorry I'm realizing I'm getting a bit
- 1:14:03off topic right here, but it's just cool
- 1:14:05to show you guys all of the features
- 1:14:07that are now inside uh investing pro.
- 1:14:11All right, guys. So, now it's time to
- 1:14:13take a look at investing with AI. And
- 1:14:16this chapter is without a doubt the
- 1:14:19chapter I am personally most excited for
- 1:14:22to show you guys in my personal opinion
- 1:14:25using AI to invest right now. It feels a
- 1:14:28little bit unfair. It feels like an
- 1:14:30unfair advantage because you know AI has
- 1:14:33gotten you know so much better so
- 1:14:36quickly and it feels like most people
- 1:14:38are still sleeping on it. You know smart
- 1:14:41money like the big banks and hedge
- 1:14:44funds. Think about people we have been
- 1:14:46talking about throughout this course
- 1:14:47like Ray Dalio. They have been using AI
- 1:14:50for decades. But the amazing thing about
- 1:14:54today's day and age is that the most
- 1:14:57powerful AI models like for example the
- 1:15:00recent model by Claude uh which is Fable
- 1:15:035 is now available to retail investors
- 1:15:06like me and you. So we basically have
- 1:15:09the same power as Wall Street. And when
- 1:15:12we combine you know for example the
- 1:15:14institutional level data that is that
- 1:15:17you can get from for example investing
- 1:15:20pro together with AI that combination is
- 1:15:23actually so so strong. And I think that
- 1:15:25in the coming years, the difference
- 1:15:27between an investor that you know
- 1:15:30masters using AI and an investor that is
- 1:15:33not really good at using AI will be
- 1:15:37massive. But here the two main AI tools
- 1:15:40I want to show you guys today is first
- 1:15:42of all a tool called Warren AI and this
- 1:15:45is basically like a chatbot like claude
- 1:15:49or chatbt but it's built upon the
- 1:15:53premium uh the premium grade data that
- 1:15:56you get from investing pro. So it's it's
- 1:15:58a b basically like a shackt that is
- 1:16:01plugged into premium data. So that's the
- 1:16:03first AI we will look at. And the second
- 1:16:06AI we're going to take a look at is
- 1:16:08called Proix AI. And this is like a
- 1:16:11complete system. It's a complete AI
- 1:16:14investing and trading system where AI
- 1:16:16basically picks all the stocks and it's
- 1:16:19across, you know, more than 25
- 1:16:21countries. There are so many strategies
- 1:16:23here and the portfolios get updated
- 1:16:26automatically each month. But when it
- 1:16:29comes to AI, especially in today's day
- 1:16:31and age, it's it's still very important
- 1:16:35to mention that we are still in a moment
- 1:16:38where AI can be super good assistance,
- 1:16:41but they cannot completely uh replace
- 1:16:45humans at least yet. Maybe in a few
- 1:16:47years they can completely replace
- 1:16:48humans, but we are not there yet. So you
- 1:16:51you should use an AI as a professional
- 1:16:54assistant, but at the end of the day,
- 1:16:55it's you that take the decisions. All
- 1:16:58right. So now we're once again in
- 1:17:00investing pro here. Here is the sort of
- 1:17:03watch list we recently built. Uh but now
- 1:17:06I actually want to move here to the prop
- 1:17:10AI tab. So this right here is the tab
- 1:17:12inside uh investing pro where you can
- 1:17:15find all of these pre-built trading
- 1:17:17strategies. My favorite trading strategy
- 1:17:19which has performed super super well is
- 1:17:22called IT15.
- 1:17:24I can see that this trading strategy has
- 1:17:26a total return of around 3,200%
- 1:17:30with an an analyzed return of 30%. And
- 1:17:34this is absolutely, you know, amazing in
- 1:17:36my opinion. I actually remember I made
- 1:17:39uh a video about this uh trading
- 1:17:41strategy from quite a while ago. I think
- 1:17:44I made a video when it was around down
- 1:17:47here. So, it was was at around 2,000%
- 1:17:50profit and since then it has been going
- 1:17:53up to a peak of all the way up here. It
- 1:17:56looks like, you know, pretty much 3,000,
- 1:17:58you know, much more than 3 pretty much
- 1:18:003,500% profit, even more than that. So,
- 1:18:03this trading strategy has performed
- 1:18:05amazingly since I made that video. And
- 1:18:09you might wonder, you know, how does
- 1:18:11this work? Well, as you can see here, uh
- 1:18:14stocks get added and taken away each
- 1:18:17month. So, for example, in uh you know,
- 1:18:19this month, you can see that some new
- 1:18:21stocks got added. For example, uh
- 1:18:23NetApp, On uh Skyworks, Oracle, all of
- 1:18:27these got added. And if we scroll down a
- 1:18:29little bit more, you can see here some
- 1:18:31of the stocks that got removed. For
- 1:18:33example, uh you know, Click uh onto onto
- 1:18:36Photonix and so on and so on. And here
- 1:18:39if you want to check the full portfolio
- 1:18:41you just go to this tab right here the
- 1:18:43portfolio tab and you can see the whole
- 1:18:45strategy right here. But as always and
- 1:18:48as I have been teaching throughout this
- 1:18:50whole course I highly recommend to be
- 1:18:53skeptical and do your own analysis. So I
- 1:18:56do want you to you know look at these
- 1:18:58stocks and sort of take a look at you
- 1:19:00know analyze the risk analyze the
- 1:19:03returns uh you know take a glance at the
- 1:19:05health and so on and so on. And here if
- 1:19:07you go to the about setting you can get
- 1:19:09a nice overview of the whole sort of
- 1:19:13portfolio. You can for example see right
- 1:19:15here how the IT15
- 1:19:18compares to other portfolios like for
- 1:19:20example the S&P 500 and other portfolios
- 1:19:24as well. You can see that we do have a
- 1:19:26strong overperformance in general. But
- 1:19:30as always, it's important to, you know,
- 1:19:32have disclaimers that the information uh
- 1:19:35presented in the Propics AI is for
- 1:19:37general information purposes only and
- 1:19:39should not be considered, you know,
- 1:19:41legal, tax, or accounting or any kind of
- 1:19:44of advice. So, I highly recommend to,
- 1:19:47you know, read the disclaimer right
- 1:19:49here. And another tip is that you can,
- 1:19:51of course, you know, look at the
- 1:19:52portfolio, but maybe there are, you
- 1:19:54know, maybe one or two companies that
- 1:19:56you don't like for some reason. Maybe
- 1:19:58you think that you have some information
- 1:19:59that the market is sleeping on. Then you
- 1:20:02can simply just remove these stocks or
- 1:20:04maybe you want to add some more stocks.
- 1:20:06So you definitely don't have to follow
- 1:20:07the strategies, you know, exactly. You
- 1:20:10can sort of mix and match between your
- 1:20:12knowledge and the sort of AI knowledge.
- 1:20:15But what is of course hard to ignore is
- 1:20:17the amazing performance here by the
- 1:20:20IT15. But we are actually not we're
- 1:20:23actually not stopping there because
- 1:20:24there are so many other strategies as
- 1:20:26well. For example, this strategy right
- 1:20:28here based on energy. We have, you know,
- 1:20:32uh, if you like value stocks, we have a
- 1:20:34strategy for that. And as you can see,
- 1:20:36we have so many different trading
- 1:20:38strategies. So, you can really sort of
- 1:20:40browse through them all and find the
- 1:20:42trading strategy that is best for you.
- 1:20:45But next, the other AI tool that you
- 1:20:47really need to to learn about is the
- 1:20:50builtin uh sort of chatbot in investing
- 1:20:53pro. This one right here is called
- 1:20:55Warren AI. And if you are, you know,
- 1:20:58really careful and skeptical, your first
- 1:21:00question should be, you know, but I
- 1:21:03already have a chatbt account. Why would
- 1:21:06I use another chatbot? And I would say
- 1:21:09that the main difference, the
- 1:21:11intelligence of these chatbots, I'm not
- 1:21:13exactly sure what underlying model is on
- 1:21:16Warren AI, but the very big difference
- 1:21:18here is that I would say it's the data
- 1:21:20the model is built upon. So in simple
- 1:21:24terms, chatbots like chatbt basically
- 1:21:27remembers and memorizes thing about the
- 1:21:30market while this chatbot uses the live
- 1:21:34market data and it uses the same data
- 1:21:36that institutions pay money for. All
- 1:21:39right, so let's try to put this chatbot
- 1:21:41into work here. One very nice trick I
- 1:21:44have if you have another uh AI like for
- 1:21:47example chatbt or claude is that you can
- 1:21:50use this AI to basically use voice
- 1:21:52dictation. So you can record your voice
- 1:21:55and text will automatically appear. So
- 1:21:57let's do that to make it a little bit
- 1:21:59more you know simple and just seamless.
- 1:22:01So let's take a prompt right here.
- 1:22:05All right. Hello Warren AI. I'm
- 1:22:08currently doing some stock investment
- 1:22:11research and what I want you to do is
- 1:22:13that I want you to find the best AI
- 1:22:17stocks right now and it should be based
- 1:22:20not only on you know the financial
- 1:22:22health but I also want you to take the
- 1:22:24fair value into account and I also want
- 1:22:29you to take future growth pro
- 1:22:32projections into account. So use all of
- 1:22:36these factors together and find me the
- 1:22:38top five best stocks based on this. So
- 1:22:42now we have the text right here and we
- 1:22:44can just uh Ctrl C and paste it into
- 1:22:48Warren AI and then we press enter. And
- 1:22:50now we just need to wait a little bit
- 1:22:52and wait for the AI to do its research.
- 1:22:56All right. And just like that we have
- 1:22:59the full analysis. We get five names. uh
- 1:23:02EPAM systems, Gartner, Adobe, Sprouto
- 1:23:06and so on and so on. And we can scroll
- 1:23:09down here and see why. As you can see,
- 1:23:11all of these companies have, you know,
- 1:23:13fair value upsides of, you know, you
- 1:23:16know, it looks like 70% or even more.
- 1:23:19You can also right here take a look at
- 1:23:20the different uh earnings per share
- 1:23:23growth forecast. For example, this one
- 1:23:25right here with a forecast of 226%.
- 1:23:29Absolutely crazy. However, the financial
- 1:23:32score is a little bit different. For
- 1:23:34example, this one right here, Sprouto
- 1:23:37seems to have a, you know, not the best
- 1:23:40health score right here. And if we want
- 1:23:42to dive deeper into any of these
- 1:23:43companies, we can, for example, click
- 1:23:44right here to open up a tab on, uh, you
- 1:23:47know, Sprite Social. You can see right
- 1:23:49here that the health score definitely
- 1:23:51could have been value uh, could could
- 1:23:53have been better, but the fair value
- 1:23:56says that it's, you know, definitely
- 1:23:58definitely undervalued. So that is uh of
- 1:24:01course amazing. Uh and if we scroll down
- 1:24:04here we get some more key insights. All
- 1:24:06five trade at forward PEG ratios well
- 1:24:09below one and you learned from earlier
- 1:24:12in this course that this is exactly what
- 1:24:13we want to see. Uh and so on and so on.
- 1:24:16You have some growth trajectories. You
- 1:24:18have some news for the different
- 1:24:20companies. And here you also get
- 1:24:22potential follow-up questions. So it ask
- 1:24:24you want do you want a side by side side
- 1:24:26ch short of these five stocks with
- 1:24:28revenue growth uh and profit margins. So
- 1:24:31why not let's just say yes sure like
- 1:24:34that. And while the chatbot is uh
- 1:24:37working right here I actually do want to
- 1:24:39mention that one thing one downside
- 1:24:42about this chatbot is that you don't get
- 1:24:44a lot of credits. I do think that maybe
- 1:24:47for free I think you maybe get five
- 1:24:49prompts or something like that. Uh but
- 1:24:52on the next paid plan, you will get 50
- 1:24:55prompts per month and that is in my
- 1:24:57opinion well than enough for many
- 1:25:00investors. But if you're taking uh
- 1:25:02investing super seriously and want the
- 1:25:04full uh full uh AI with 500 promps a
- 1:25:08month, uh then you need the highest
- 1:25:10version of investing pro. But luckily, I
- 1:25:13actually just recently checked by using
- 1:25:15my link uh down in in the description as
- 1:25:18well as the pin comment. Uh you will get
- 1:25:20to this page right here. And we do have
- 1:25:23a massive July sale going on right now.
- 1:25:26And you can actually get up to 60% off
- 1:25:29on Investing Pro. And on top of that,
- 1:25:32when you click on claim sale, you can
- 1:25:35read a little bit about the main
- 1:25:37differences here between the plans. One
- 1:25:40very big difference is the amount of
- 1:25:42credits for the warn AI. As I said, it's
- 1:25:4450 on Pro, it's 500 on Pro Plus. Another
- 1:25:47big difference is that you get all of
- 1:25:49the ProPix uh AI trading strategies
- 1:25:52here, which is 88 investing strategies
- 1:25:55in the Pro Plus plan. Uh in this plan,
- 1:25:58you only get six ProPix AI strategies
- 1:26:01for the US uh for the US market. Um it's
- 1:26:04also a little bit difference in the
- 1:26:06amount of financial data, the quality of
- 1:26:08the data and so on and so on. But as I
- 1:26:10said for beginners, I definitely think
- 1:26:11think that pro is a good way to start
- 1:26:14and to get the best offer. You need to
- 1:26:16do the buy yearly plan. But when you
- 1:26:19click claim sale here, if you use my
- 1:26:21link, you can see that you will also get
- 1:26:23an additional 50% off. So it's 60% off
- 1:26:27and then an additional 15% off. But
- 1:26:31right so now the AI is done uh you know
- 1:26:34thinking here and we get a nice
- 1:26:36comparison here between the uh margins
- 1:26:39of the different companies for five
- 1:26:41years here. So you can compare the
- 1:26:42margin margins and you can also here
- 1:26:44compare all of the companies different
- 1:26:46growth. You can see we have a relatively
- 1:26:49high growth on most companies, but you
- 1:26:51can see that for example uh the Sprout
- 1:26:54uh company, the blue line right here has
- 1:26:56been falling quite a bit lately and that
- 1:26:58is probably you know a big reason why
- 1:27:00the uh company's stock price have been
- 1:27:03tanking so much. We can also see the
- 1:27:06EBITD DA margin right here and here you
- 1:27:09get a sort of final verdict.
- 1:27:12But all right guys, uh I'm seeing that
- 1:27:15this course is getting very very long.
- 1:27:17So it's about time for me to start
- 1:27:20wrapping up. Uh but before we wrap up, I
- 1:27:22of course want to thank you all so so
- 1:27:25much for being with me here today. I
- 1:27:28really hope that this uh you know full
- 1:27:30course on investing was helpful. Um, and
- 1:27:34if this course helped you uh understand
- 1:27:36investing, I would appreciate so so much
- 1:27:39if you can show that by dropping a like.
- 1:27:43Uh, that is the sort of simple free way
- 1:27:45to support the channel right here. And
- 1:27:47also, do you have any questions about
- 1:27:50this course? Or even more importantly,
- 1:27:52do you have any feedback on what you
- 1:27:54want to see next on the channel? H
- 1:27:56please guys, make sure to drop a comment
- 1:27:59down below. I try my very best to read
- 1:28:01and answer to as many comments as
- 1:28:03possible possible. Recently the comment
- 1:28:05section has been it has been a little
- 1:28:07bit too much for me to answer to every
- 1:28:09single one but I really really try my
- 1:28:12best. Uh and also guys if you made it
- 1:28:14all the way to the end make sure to drop
- 1:28:17a comment down below saying full course.
- 1:28:20Uh that is a fun way for me to see that
- 1:28:22you watch the full course and it's also
- 1:28:25a way for you guys and me to sort of
- 1:28:28confuse, you know, the audience that
- 1:28:29didn't watch it all the way to the end.
- 1:28:31That is a nice way to to do that. Uh but
- 1:28:34yeah, guys, if you're interested in more
- 1:28:36uh content on both investing and
- 1:28:39trading, uh don't hesitate to subscribe.
- 1:28:42I plan to make more videos on investing,
- 1:28:45uh trading, and AI in the future. But
- 1:28:48yeah, guys, I hope I will see you guys
- 1:28:50in the next video very soon. But for
- 1:28:52now, take care. Chowo chiao. All right,
- 1:28:54guys. So, now you know how to invest and
- 1:28:57you know how to use AI to invest. If
- 1:29:01you're interested in diving deeper into
- 1:29:03how to use AI to trade, I highly
- 1:29:07recommend to check out this course on
- 1:29:09how to connect your Claude directly to
- 1:29:12Trading View.
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