1 00:00:00,000 --> 00:00:02,180 Welcome to the deep dive. 2 00:00:02,180 --> 00:00:05,880 You know we love to tailor these explorations just for you. 3 00:00:05,880 --> 00:00:08,120 We know you're interested in 4 00:00:08,120 --> 00:00:10,120 getting into the stock market, right? 5 00:00:10,120 --> 00:00:12,880 Especially thinking about how to build that long-term wealth, 6 00:00:12,880 --> 00:00:14,920 even if you're not starting with a ton of cash. 7 00:00:14,920 --> 00:00:15,760 Right. 8 00:00:15,760 --> 00:00:20,040 So we're diving into Sarah Finance's YouTube video, 9 00:00:20,040 --> 00:00:21,480 Stock Market for Beginners. 10 00:00:21,480 --> 00:00:22,440 Okay. 11 00:00:22,440 --> 00:00:24,720 She's amazing at breaking down complex stuff 12 00:00:24,720 --> 00:00:26,320 and making it super clear. 13 00:00:26,320 --> 00:00:28,120 Yeah, she does a really good job with that. 14 00:00:28,120 --> 00:00:29,640 So it's perfect for this deep dive. 15 00:00:29,640 --> 00:00:32,120 It's great that you're thinking about investing, 16 00:00:32,120 --> 00:00:32,960 especially now. 17 00:00:32,960 --> 00:00:35,640 You know, like there's a lot of potential out there. 18 00:00:35,640 --> 00:00:37,660 A lot of people are a little hesitant 19 00:00:37,660 --> 00:00:38,880 with the market right now, 20 00:00:38,880 --> 00:00:40,440 but that can sometimes create 21 00:00:40,440 --> 00:00:42,240 some pretty interesting opportunities. 22 00:00:42,240 --> 00:00:43,160 That's a good point. 23 00:00:43,160 --> 00:00:44,960 Of course there's always risk too. 24 00:00:44,960 --> 00:00:45,960 Yeah, for sure. 25 00:00:45,960 --> 00:00:48,800 But it's smart to be thinking about this stuff, you know, 26 00:00:48,800 --> 00:00:50,680 for that long-term financial well-being. 27 00:00:50,680 --> 00:00:51,720 Definitely. 28 00:00:51,720 --> 00:00:53,600 So let's start with the basics. 29 00:00:53,600 --> 00:00:55,320 What is a stock? 30 00:00:55,320 --> 00:00:56,720 How does Sarah explain that? 31 00:00:56,720 --> 00:00:57,560 Yeah. 32 00:00:57,560 --> 00:00:58,640 I love how she uses Apple and Tesla 33 00:00:58,640 --> 00:01:01,640 as those like real-world examples. 34 00:01:01,640 --> 00:01:06,600 She says, imagine like Apple has five million shares, right? 35 00:01:06,600 --> 00:01:11,400 And the price you see, like right now, it's 277.97. 36 00:01:11,400 --> 00:01:13,720 That's what one share costs at this very moment. 37 00:01:13,720 --> 00:01:14,560 Right. 38 00:01:14,560 --> 00:01:15,560 So when you buy a share, 39 00:01:15,560 --> 00:01:18,360 you're basically buying a tiny little piece of Apple. 40 00:01:18,360 --> 00:01:19,200 That's it. 41 00:01:19,200 --> 00:01:20,040 You become a part owner, 42 00:01:20,040 --> 00:01:21,920 even if it's a super small part. 43 00:01:21,920 --> 00:01:23,920 And you know that share price. 44 00:01:23,920 --> 00:01:26,720 The 277.97 in our Apple example, 45 00:01:26,720 --> 00:01:28,000 that's always fluctuating. 46 00:01:28,000 --> 00:01:28,340 Oh yeah. 47 00:01:28,340 --> 00:01:32,040 It changes based on how well the company is doing, 48 00:01:32,040 --> 00:01:33,360 trends in the market, 49 00:01:33,360 --> 00:01:36,160 even like global stuff happening in the world. 50 00:01:36,160 --> 00:01:38,280 I mean, think about the COVID-19 pandemic. 51 00:01:38,280 --> 00:01:39,800 That really messed with the market. 52 00:01:39,800 --> 00:01:40,680 Totally. 53 00:01:40,680 --> 00:01:42,720 So, okay, we know what stocks are, 54 00:01:42,720 --> 00:01:44,440 but how do we actually buy them? 55 00:01:44,440 --> 00:01:46,200 Like what are the mechanics of it? 56 00:01:46,200 --> 00:01:47,560 Sarah mentions all these platforms 57 00:01:47,560 --> 00:01:50,800 like Wilsimple Trade, Robinhood, Questrade, 58 00:01:50,800 --> 00:01:52,120 TD Ameritrade. 59 00:01:52,120 --> 00:01:54,080 There are so many options now. 60 00:01:54,080 --> 00:01:55,880 There really are a lot more than there used to be. 61 00:01:55,880 --> 00:01:58,640 And some even let you start investing with just 10 bucks. 62 00:01:58,640 --> 00:02:00,200 Yeah, that's amazing. 63 00:02:00,200 --> 00:02:02,360 Investing is so much more accessible these days. 64 00:02:02,360 --> 00:02:04,120 You don't have to be rich to get started. 65 00:02:04,120 --> 00:02:04,920 That's so cool. 66 00:02:04,920 --> 00:02:06,760 But I guess it's important to like, 67 00:02:06,760 --> 00:02:08,960 compare these platforms before jumping in. 68 00:02:08,960 --> 00:02:09,600 Oh, absolutely. 69 00:02:09,600 --> 00:02:11,040 Don't just pick the first one you see. 70 00:02:11,040 --> 00:02:13,880 They've got different fees, you know, different features, 71 00:02:13,880 --> 00:02:16,320 and they don't all offer the same types of investments. 72 00:02:16,320 --> 00:02:19,840 Some might charge you like a fee every time you buy or sell. 73 00:02:19,840 --> 00:02:21,960 Others might have like a monthly fee. 74 00:02:21,960 --> 00:02:22,160 Yeah. 75 00:02:22,160 --> 00:02:24,280 And those little costs can add up 76 00:02:24,280 --> 00:02:27,080 and really eat into your returns in the long run. 77 00:02:27,080 --> 00:02:27,440 Yeah. 78 00:02:27,440 --> 00:02:30,600 It's definitely worth taking the time to do your research 79 00:02:30,600 --> 00:02:34,000 and find the one that's the best fit for what you're trying to do. 80 00:02:34,000 --> 00:02:35,800 Yeah, it's like those sneaky charges you sometimes 81 00:02:35,800 --> 00:02:38,040 see on bills like, wait a minute, what is this? 82 00:02:38,040 --> 00:02:39,240 Right, exactly. 83 00:02:39,240 --> 00:02:42,520 So let's say we've picked our platform and we're ready to go. 84 00:02:42,520 --> 00:02:44,960 How do we actually make money from stocks? 85 00:02:44,960 --> 00:02:47,600 OK, so the classic approach, the one everyone talks about, 86 00:02:47,600 --> 00:02:49,160 is buy low, sell high, right? 87 00:02:49,160 --> 00:02:49,680 Yeah. 88 00:02:49,680 --> 00:02:51,800 Sounds pretty straightforward in theory. 89 00:02:51,800 --> 00:02:53,320 But there's a bit more to it. 90 00:02:53,320 --> 00:02:53,640 Right. 91 00:02:53,640 --> 00:02:56,360 It's about being able to understand market trends, 92 00:02:56,360 --> 00:02:59,920 researching companies, and being patient. 93 00:02:59,920 --> 00:03:01,080 Oh, yeah, patients. 94 00:03:01,080 --> 00:03:03,520 You're basically trying to figure out which companies are 95 00:03:03,520 --> 00:03:05,600 going to increase in value over time. 96 00:03:05,600 --> 00:03:06,240 Gotcha. 97 00:03:06,240 --> 00:03:08,440 It's not about getting rich quick. 98 00:03:08,440 --> 00:03:13,000 It's about making smart, informed choices for the long term. 99 00:03:13,000 --> 00:03:16,280 OK, so she uses Tesla as an example for this buy low, sell high, 100 00:03:16,280 --> 00:03:16,480 right? 101 00:03:16,480 --> 00:03:19,640 Yeah, like let's say you bought a share of Tesla a while back. 102 00:03:19,640 --> 00:03:23,280 Then the market dips, and the price drops. 103 00:03:23,280 --> 00:03:26,000 If you sell right then, well, you're going to lose money. 104 00:03:26,000 --> 00:03:26,520 Oh, right. 105 00:03:26,520 --> 00:03:29,880 But if you hold on, and the price goes back up even higher 106 00:03:29,880 --> 00:03:32,920 than before, you're in a good spot to make a profit. 107 00:03:32,920 --> 00:03:34,760 So it's all about timing, I guess. 108 00:03:34,760 --> 00:03:36,760 Sort of, but not exactly. 109 00:03:36,760 --> 00:03:39,560 It's more about having a strategy and sticking to it. 110 00:03:39,560 --> 00:03:40,480 Makes sense. 111 00:03:40,480 --> 00:03:42,680 It's a bit like a roller coaster, though, right? 112 00:03:42,680 --> 00:03:44,240 Going to be ready for those ups and downs. 113 00:03:44,240 --> 00:03:45,000 Exactly. 114 00:03:45,000 --> 00:03:48,480 That's why it's so important to differentiate between long term 115 00:03:48,480 --> 00:03:50,040 investing and short term investing. 116 00:03:50,040 --> 00:03:50,520 OK. 117 00:03:50,520 --> 00:03:52,680 You mentioned wanting to build long term wealth, right? 118 00:03:52,680 --> 00:03:53,160 Yeah. 119 00:03:53,160 --> 00:03:57,720 And while buy low, sell high can work for short term trades, 120 00:03:57,720 --> 00:03:59,280 those can be pretty risky. 121 00:03:59,280 --> 00:04:01,440 You're basically trying to time the market perfectly, 122 00:04:01,440 --> 00:04:04,120 and that's a tough game even for experienced investors. 123 00:04:04,120 --> 00:04:05,000 Really? 124 00:04:05,000 --> 00:04:05,880 Oh, yeah. 125 00:04:05,880 --> 00:04:09,080 I thought they were always on top of that stuff. 126 00:04:09,080 --> 00:04:11,680 Even the pros get it wrong sometimes. 127 00:04:11,680 --> 00:04:14,840 Long term investing is more about choosing companies 128 00:04:14,840 --> 00:04:17,640 you really believe in and holding onto those stocks 129 00:04:17,640 --> 00:04:22,520 for years, maybe even decades, so your investments can grow 130 00:04:22,520 --> 00:04:23,840 steadily over time. 131 00:04:23,840 --> 00:04:26,520 So you're saying it's more about finding those solid companies 132 00:04:26,520 --> 00:04:27,640 with growth potential. 133 00:04:27,640 --> 00:04:28,480 Exactly. 134 00:04:28,480 --> 00:04:31,600 And then having the patience to let those investments play out 135 00:04:31,600 --> 00:04:32,520 over the long term. 136 00:04:32,520 --> 00:04:33,600 OK, that makes sense. 137 00:04:33,600 --> 00:04:35,080 And that kind of reminds me of something else 138 00:04:35,080 --> 00:04:35,760 Sarah talked about. 139 00:04:35,760 --> 00:04:37,720 The whole research aspect of investing 140 00:04:37,720 --> 00:04:40,680 is like you wouldn't jump into a relationship without getting 141 00:04:40,680 --> 00:04:41,840 to know the person, right? 142 00:04:41,840 --> 00:04:42,520 Exactly. 143 00:04:42,520 --> 00:04:44,520 Due diligence is so important. 144 00:04:44,520 --> 00:04:46,320 Yeah, it's all about knowing what you're getting into, 145 00:04:46,320 --> 00:04:47,040 I guess. 146 00:04:47,040 --> 00:04:48,040 Absolutely. 147 00:04:48,040 --> 00:04:51,560 And Sarah has some great tips on how to do that research. 148 00:04:51,560 --> 00:04:54,200 She suggests checking out investor relations pages, 149 00:04:54,200 --> 00:04:57,200 things like the 10K reports and 10Q reports 150 00:04:57,200 --> 00:04:58,440 that companies have to publish. 151 00:04:58,440 --> 00:05:00,080 Those can seem pretty intimidating, though. 152 00:05:00,080 --> 00:05:03,000 They can, but they're a goldmine of information 153 00:05:03,000 --> 00:05:04,560 once you know what to look for. 154 00:05:04,560 --> 00:05:05,280 OK. 155 00:05:05,280 --> 00:05:08,120 And she also talks about listening to conference calls. 156 00:05:08,120 --> 00:05:09,720 That can give you a lot of insight 157 00:05:09,720 --> 00:05:12,240 into the company's plans and performance. 158 00:05:12,240 --> 00:05:15,240 Plus, there are fantastic resources out there 159 00:05:15,240 --> 00:05:18,080 like Yahoo Finance and CNBC that give you 160 00:05:18,080 --> 00:05:19,560 a ton of information. 161 00:05:19,560 --> 00:05:21,960 There's like gathering clues, putting the pieces together. 162 00:05:21,960 --> 00:05:22,800 Exactly. 163 00:05:22,800 --> 00:05:24,320 But that can feel like a lot of work, 164 00:05:24,320 --> 00:05:26,360 especially if you're new to this whole investing thing. 165 00:05:26,360 --> 00:05:28,040 Yeah, it definitely takes some effort, 166 00:05:28,040 --> 00:05:29,680 but it's an investment in itself. 167 00:05:29,680 --> 00:05:31,840 The more you understand the company, the more confident 168 00:05:31,840 --> 00:05:34,000 you'll be in your decision to invest. 169 00:05:34,000 --> 00:05:34,360 Right. 170 00:05:34,360 --> 00:05:36,160 So you're not just buying a stock, 171 00:05:36,160 --> 00:05:39,320 you're buying a piece of a company's future. 172 00:05:39,320 --> 00:05:39,840 Exactly. 173 00:05:39,840 --> 00:05:41,760 You're becoming a part of their story. 174 00:05:41,760 --> 00:05:42,920 I like that. 175 00:05:42,920 --> 00:05:46,560 OK, but what about those of us who don't have the time 176 00:05:46,560 --> 00:05:51,840 or expertise to analyze those complicated company reports? 177 00:05:51,840 --> 00:05:52,360 Right. 178 00:05:52,360 --> 00:05:54,960 Sarah mentioned something about blue chip stocks and index funds. 179 00:05:54,960 --> 00:05:55,680 Which does. 180 00:05:55,680 --> 00:05:58,400 Are those a simpler way to get into investing? 181 00:05:58,400 --> 00:05:59,160 They can be. 182 00:05:59,160 --> 00:06:00,680 They're definitely great options for what 183 00:06:00,680 --> 00:06:02,240 we call passive investing. 184 00:06:02,240 --> 00:06:04,320 It basically means you don't have to be as hands 185 00:06:04,320 --> 00:06:05,360 on with your investments. 186 00:06:05,360 --> 00:06:06,960 OK, that sounds more my style. 187 00:06:06,960 --> 00:06:10,480 So blue chip stocks, those are the big, well-established 188 00:06:10,480 --> 00:06:13,040 companies with really solid reputations, 189 00:06:13,040 --> 00:06:17,440 like your Facebooks, Apples, Amazons, Microsofts. 190 00:06:17,440 --> 00:06:18,640 OK, I've heard of those. 191 00:06:18,640 --> 00:06:21,440 They've been around for a while, have a proven track record, 192 00:06:21,440 --> 00:06:25,440 and they're generally considered less risky than those smaller 193 00:06:25,440 --> 00:06:26,520 or newer companies. 194 00:06:26,520 --> 00:06:28,560 So they're like the reliable ones, the ones that 195 00:06:28,560 --> 00:06:29,400 have been around the block. 196 00:06:29,400 --> 00:06:29,920 Exactly. 197 00:06:29,920 --> 00:06:32,200 They've weathered the storms and come out stronger. 198 00:06:32,200 --> 00:06:33,360 So what about index funds? 199 00:06:33,360 --> 00:06:34,200 What are those all about? 200 00:06:34,200 --> 00:06:37,440 Index funds are like, imagine a basket of stocks, OK? 201 00:06:37,440 --> 00:06:37,800 OK. 202 00:06:37,800 --> 00:06:41,600 And that basket is designed to track a specific market 203 00:06:41,600 --> 00:06:45,680 index, like one of the most popular is the S&P 500. 204 00:06:45,680 --> 00:06:46,640 I've heard of that one. 205 00:06:46,640 --> 00:06:50,360 That one includes 500 of the largest US companies. 206 00:06:50,360 --> 00:06:52,400 So when you invest in an index fund, 207 00:06:52,400 --> 00:06:55,640 you're basically buying a small piece of all the companies 208 00:06:55,640 --> 00:06:56,720 in that index. 209 00:06:56,720 --> 00:06:58,560 So instead of picking individual stocks, 210 00:06:58,560 --> 00:07:00,800 you're investing in a diversified portfolio. 211 00:07:00,800 --> 00:07:02,920 Oh, so you're kind of spreading your risk 212 00:07:02,920 --> 00:07:04,240 across a bunch of different companies. 213 00:07:04,240 --> 00:07:04,880 Exactly. 214 00:07:04,880 --> 00:07:05,840 That's kind of smart. 215 00:07:05,840 --> 00:07:06,340 It is. 216 00:07:06,340 --> 00:07:08,200 It's a great way to reduce risk without having 217 00:07:08,200 --> 00:07:10,920 to do all that research on every single company. 218 00:07:10,920 --> 00:07:13,200 And she also mentioned something about capital gains taxes. 219 00:07:13,200 --> 00:07:14,800 What's that about? 220 00:07:14,800 --> 00:07:15,300 Yeah. 221 00:07:15,300 --> 00:07:18,840 So taxes are a super important part of investing. 222 00:07:18,840 --> 00:07:21,080 And like many things in the financial world, 223 00:07:21,080 --> 00:07:23,360 they can be a little complicated. 224 00:07:23,360 --> 00:07:26,760 But the basic idea is that when you sell an investment 225 00:07:26,760 --> 00:07:28,760 and you make a profit, you might have 226 00:07:28,760 --> 00:07:31,240 to pay a capital gains tax on that profit. 227 00:07:31,240 --> 00:07:34,080 So you're basically sharing some of your earnings 228 00:07:34,080 --> 00:07:34,800 with the government. 229 00:07:34,800 --> 00:07:35,480 Pretty much. 230 00:07:35,480 --> 00:07:37,040 It's like a thank you for letting 231 00:07:37,040 --> 00:07:39,160 you use their financial system. 232 00:07:39,160 --> 00:07:42,600 But the amount of tax you pay depends on a bunch of stuff. 233 00:07:42,600 --> 00:07:44,360 How long you hold the investment, 234 00:07:44,360 --> 00:07:47,000 what your tax bracket is, all sorts of things. 235 00:07:47,000 --> 00:07:49,840 Remember how Sarah mentioned that holding an investment 236 00:07:49,840 --> 00:07:52,720 for over a year can sometimes get you a lower tax rate? 237 00:07:52,720 --> 00:07:53,220 Yeah. 238 00:07:53,220 --> 00:07:55,040 That's a good thing to keep in mind 239 00:07:55,040 --> 00:07:58,000 when you're deciding how long to hold your investments. 240 00:07:58,000 --> 00:07:59,400 So it's like a puzzle. 241 00:07:59,400 --> 00:08:01,360 There are all these different pieces that you 242 00:08:01,360 --> 00:08:02,720 have to fit together. 243 00:08:02,720 --> 00:08:03,280 It is. 244 00:08:03,280 --> 00:08:05,840 And it's a puzzle that's always changing. 245 00:08:05,840 --> 00:08:07,880 But once you get the hang of it, it's 246 00:08:07,880 --> 00:08:10,120 a pretty amazing puzzle to solve. 247 00:08:10,120 --> 00:08:11,160 That's a good way to look at it. 248 00:08:11,160 --> 00:08:13,400 And the rewards can be pretty amazing too. 249 00:08:13,400 --> 00:08:14,480 Well, that's encouraging. 250 00:08:14,480 --> 00:08:16,240 OK, so we've gone through a lot here. 251 00:08:16,240 --> 00:08:17,720 Yeah, we've covered a lot of ground. 252 00:08:17,720 --> 00:08:21,040 We've talked about what stocks are, how to buy them, 253 00:08:21,040 --> 00:08:23,600 the different approaches you can take to investing, 254 00:08:23,600 --> 00:08:26,480 and even touched on those pesky tax implications. 255 00:08:26,480 --> 00:08:28,120 It feels like a lot to absorb. 256 00:08:28,120 --> 00:08:28,720 It is. 257 00:08:28,720 --> 00:08:30,200 But you're doing great. 258 00:08:30,200 --> 00:08:33,040 Just remember, investing is a journey, not a sprint. 259 00:08:33,040 --> 00:08:33,440 Right. 260 00:08:33,440 --> 00:08:35,480 Take your time, do your research, 261 00:08:35,480 --> 00:08:37,440 and don't be afraid to ask questions. 262 00:08:37,440 --> 00:08:40,080 That's the best way to learn and grow. 263 00:08:40,080 --> 00:08:41,120 I like that. 264 00:08:41,120 --> 00:08:43,920 OK, so are we ready to dive into some of those investing 265 00:08:43,920 --> 00:08:45,360 strategies Sarah talks about? 266 00:08:45,360 --> 00:08:46,200 Let's do it. 267 00:08:46,200 --> 00:08:49,280 All right, so Sarah talks about a few different investing 268 00:08:49,280 --> 00:08:53,800 strategies, which is awesome because it helps figure out 269 00:08:53,800 --> 00:08:55,280 which one might work best for you. 270 00:08:55,280 --> 00:08:58,320 Yeah, it's like finding the right tool for the job, 271 00:08:58,320 --> 00:09:00,200 different strategies for different goals. 272 00:09:00,200 --> 00:09:01,600 Exactly. 273 00:09:01,600 --> 00:09:03,320 So let's start with swing trading. 274 00:09:03,320 --> 00:09:04,800 What's that all about? 275 00:09:04,800 --> 00:09:09,040 So swing trading is all about trying to catch those short-term 276 00:09:09,040 --> 00:09:10,960 price swings in the market. 277 00:09:10,960 --> 00:09:14,760 The idea is to buy a stock, hold it for a few weeks or months, 278 00:09:14,760 --> 00:09:17,440 and then sell when the price goes up, hopefully. 279 00:09:17,440 --> 00:09:19,840 So it's kind of like riding those waves, 280 00:09:19,840 --> 00:09:21,120 trying to time it just right. 281 00:09:21,120 --> 00:09:23,200 Yeah, that's a great way to put it. 282 00:09:23,200 --> 00:09:24,560 Imagine you're surfing. 283 00:09:24,560 --> 00:09:26,960 You're waiting for that perfect wave to come along. 284 00:09:26,960 --> 00:09:27,600 OK, yeah. 285 00:09:27,600 --> 00:09:29,160 Yeah, catch it at the right time. 286 00:09:29,160 --> 00:09:31,840 Write it for as long as you can, then hop off before it crashes. 287 00:09:31,840 --> 00:09:32,280 Gotcha. 288 00:09:32,280 --> 00:09:35,680 So Sarah uses Amazon as an example for swing trading, right? 289 00:09:35,680 --> 00:09:38,960 Yeah, imagine buying Amazon at a certain price. 290 00:09:38,960 --> 00:09:39,280 OK. 291 00:09:39,280 --> 00:09:41,360 You wait a little bit, the price goes up, 292 00:09:41,360 --> 00:09:42,640 and then you sell for a profit. 293 00:09:42,640 --> 00:09:43,400 Boom. 294 00:09:43,400 --> 00:09:44,520 Sounds easy enough. 295 00:09:44,520 --> 00:09:45,720 It does, right. 296 00:09:45,720 --> 00:09:47,880 But swing trading can be tricky. 297 00:09:47,880 --> 00:09:49,280 You got to know what you're doing. 298 00:09:49,280 --> 00:09:50,280 Right, of course. 299 00:09:50,280 --> 00:09:53,960 It requires a good understanding of market trends, 300 00:09:53,960 --> 00:09:56,160 being able to make quick decisions, 301 00:09:56,160 --> 00:09:59,440 and it definitely comes with some risk. 302 00:09:59,440 --> 00:10:01,040 So not for the faint of heart. 303 00:10:01,040 --> 00:10:03,720 Yeah, it can be a bit of an emotional roller coaster, too. 304 00:10:03,720 --> 00:10:05,040 Oh, I can imagine. 305 00:10:05,040 --> 00:10:07,240 Watching those prices go up and down all the time. 306 00:10:07,240 --> 00:10:08,920 Yeah, it can be stressful. 307 00:10:08,920 --> 00:10:12,360 OK, so maybe not the best strategy for someone just 308 00:10:12,360 --> 00:10:13,440 starting out? 309 00:10:13,440 --> 00:10:14,760 Probably not. 310 00:10:14,760 --> 00:10:17,440 But Sarah also talks about this other strategy 311 00:10:17,440 --> 00:10:19,200 called buy and hold. 312 00:10:19,200 --> 00:10:20,360 OK, tell me about that. 313 00:10:20,360 --> 00:10:24,040 Buy and hold is more about the long game. 314 00:10:24,040 --> 00:10:26,400 It's about picking companies you really believe in. 315 00:10:26,400 --> 00:10:26,840 OK, yeah. 316 00:10:26,840 --> 00:10:27,800 Companies that you think are going 317 00:10:27,800 --> 00:10:29,560 to be successful over the long term. 318 00:10:29,560 --> 00:10:30,920 Like household names. 319 00:10:30,920 --> 00:10:32,080 The ones everyone knows. 320 00:10:32,080 --> 00:10:32,760 Exactly. 321 00:10:32,760 --> 00:10:34,360 The companies that have been around for a while 322 00:10:34,360 --> 00:10:35,840 and have a track record of success. 323 00:10:35,840 --> 00:10:36,360 Gotcha. 324 00:10:36,360 --> 00:10:39,120 And you buy those shares and you hold onto them, 325 00:10:39,120 --> 00:10:41,760 sometimes for years, maybe even decades, 326 00:10:41,760 --> 00:10:43,200 and let the company do its thing. 327 00:10:43,200 --> 00:10:46,200 So it's like planting a seed and watching it grow. 328 00:10:46,200 --> 00:10:47,080 Exactly. 329 00:10:47,080 --> 00:10:49,520 And hopefully, your investment grows along with it. 330 00:10:49,520 --> 00:10:51,360 She uses built-to-airlines as an example. 331 00:10:51,360 --> 00:10:51,840 Oh, yeah. 332 00:10:51,840 --> 00:10:56,280 Imagine you invested $1,000 back in 2009. 333 00:10:56,280 --> 00:10:57,160 OK. 334 00:10:57,160 --> 00:10:59,600 10 years later, that investment would have been worth 335 00:10:59,600 --> 00:11:00,960 almost $7,000. 336 00:11:00,960 --> 00:11:01,920 Wow, that's impressive. 337 00:11:01,920 --> 00:11:03,080 It is, right. 338 00:11:03,080 --> 00:11:04,920 But you know, past performance doesn't always 339 00:11:04,920 --> 00:11:06,720 guarantee those same results in the future. 340 00:11:06,720 --> 00:11:08,080 True, true. 341 00:11:08,080 --> 00:11:11,000 But it does show the power of long term growth. 342 00:11:11,000 --> 00:11:12,280 Yeah, totally. 343 00:11:12,280 --> 00:11:15,960 So swing trading is all about those short term gains. 344 00:11:15,960 --> 00:11:18,960 And buy and hold is more about those long term, slow, 345 00:11:18,960 --> 00:11:20,160 and steady wins. 346 00:11:20,160 --> 00:11:20,960 Right. 347 00:11:20,960 --> 00:11:22,200 What about day trading? 348 00:11:22,200 --> 00:11:23,880 Is that another strategy she talks about? 349 00:11:23,880 --> 00:11:24,640 She does. 350 00:11:24,640 --> 00:11:26,640 That one is, well, intense. 351 00:11:26,640 --> 00:11:29,040 Day trading involves buying and selling 352 00:11:29,040 --> 00:11:32,280 stocks within a single day, sometimes in minutes, even 353 00:11:32,280 --> 00:11:33,080 seconds. 354 00:11:33,080 --> 00:11:33,680 Whoa. 355 00:11:33,680 --> 00:11:35,520 Yeah, it's a fast paced game. 356 00:11:35,520 --> 00:11:36,360 It sounds stressful. 357 00:11:36,360 --> 00:11:36,720 It is. 358 00:11:36,720 --> 00:11:38,840 It definitely takes a certain personality type. 359 00:11:38,840 --> 00:11:40,840 I don't think I can handle that. 360 00:11:40,840 --> 00:11:43,360 Day trading is really high risk, high reward. 361 00:11:43,360 --> 00:11:45,600 You need to really know what you're doing, 362 00:11:45,600 --> 00:11:48,040 have super quick reflexes, and be 363 00:11:48,040 --> 00:11:50,080 able to handle a lot of stress. 364 00:11:50,080 --> 00:11:52,880 Some people even compare it to gambling. 365 00:11:52,880 --> 00:11:53,880 Yeah, I could see why. 366 00:11:53,880 --> 00:11:56,160 It's not something I would recommend for beginners, 367 00:11:56,160 --> 00:11:59,200 or really anyone who's not completely dedicated to it 368 00:11:59,200 --> 00:12:01,320 as a full time thing. 369 00:12:01,320 --> 00:12:04,400 So yeah, I'm going to stick to swing trading or buy and hold. 370 00:12:04,400 --> 00:12:05,800 Those seem a bit more my speed. 371 00:12:05,800 --> 00:12:06,960 Good choice. 372 00:12:06,960 --> 00:12:09,440 So OK, let's say we've decided on our strategy. 373 00:12:09,440 --> 00:12:12,800 Maybe we're thinking long term, that buy and hold approach. 374 00:12:12,800 --> 00:12:15,640 How do we know which companies to invest in? 375 00:12:15,640 --> 00:12:17,200 Where do we even begin? 376 00:12:17,200 --> 00:12:18,160 That's a great question. 377 00:12:18,160 --> 00:12:19,520 And that's where the research comes in. 378 00:12:19,520 --> 00:12:21,880 Remember how we talked about due diligence earlier? 379 00:12:21,880 --> 00:12:22,360 Yeah. 380 00:12:22,360 --> 00:12:25,400 It's all about really understanding the company. 381 00:12:25,400 --> 00:12:27,400 It's potential and its track record. 382 00:12:27,400 --> 00:12:29,480 You're not just throwing darts at a board here. 383 00:12:29,480 --> 00:12:31,080 It's about making informed decisions. 384 00:12:31,080 --> 00:12:32,080 Exactly. 385 00:12:32,080 --> 00:12:35,720 And Sarah gives some great ticks on how to do that research. 386 00:12:35,720 --> 00:12:37,760 She suggests things like checking out a company's 387 00:12:37,760 --> 00:12:41,400 investor relations page, looking into their 10K and 10Q 388 00:12:41,400 --> 00:12:41,880 reports. 389 00:12:41,880 --> 00:12:44,080 I feel like those are those long boring reports 390 00:12:44,080 --> 00:12:45,720 that nobody really reads. 391 00:12:45,720 --> 00:12:47,360 They can be a bit dry, yeah. 392 00:12:47,360 --> 00:12:48,600 But I guess they're important. 393 00:12:48,600 --> 00:12:49,160 They are. 394 00:12:49,160 --> 00:12:51,000 They give you a real in depth look 395 00:12:51,000 --> 00:12:54,400 at the company's financials, their performance, 396 00:12:54,400 --> 00:12:57,040 all the nitty gritty details. 397 00:12:57,040 --> 00:12:59,360 And there are tons of resources online 398 00:12:59,360 --> 00:13:02,840 to help you break them down and figure out what's important. 399 00:13:02,840 --> 00:13:04,440 It's like learning a new language. 400 00:13:04,440 --> 00:13:06,240 At first, it's all gibberish. 401 00:13:06,240 --> 00:13:08,200 But once you learn a few key phrases, 402 00:13:08,200 --> 00:13:10,200 you can start to understand the conversation. 403 00:13:10,200 --> 00:13:11,160 Right. 404 00:13:11,160 --> 00:13:12,880 OK, that makes sense. 405 00:13:12,880 --> 00:13:16,880 So besides those reports, what else does Sarah recommend? 406 00:13:16,880 --> 00:13:20,080 She also suggests listening to conference calls. 407 00:13:20,080 --> 00:13:21,280 Those can be really helpful. 408 00:13:21,280 --> 00:13:23,960 You get to hear directly from the company's leadership 409 00:13:23,960 --> 00:13:26,760 about their plans for the future, what's going well, 410 00:13:26,760 --> 00:13:28,440 what challenges they're facing. 411 00:13:28,440 --> 00:13:30,880 It's like getting a sneak peek behind the curtain. 412 00:13:30,880 --> 00:13:31,560 That's cool. 413 00:13:31,560 --> 00:13:32,200 It is. 414 00:13:32,200 --> 00:13:34,360 And then, of course, you have your trusty resources 415 00:13:34,360 --> 00:13:36,640 like Yahoo Finance and CNBC. 416 00:13:36,640 --> 00:13:37,440 I've heard of them. 417 00:13:37,440 --> 00:13:40,720 They're great for getting news and analysis on companies 418 00:13:40,720 --> 00:13:41,840 and market trends. 419 00:13:41,840 --> 00:13:44,200 They can be your investing buddies, 420 00:13:44,200 --> 00:13:46,200 always there to give you the latest scoop. 421 00:13:46,200 --> 00:13:46,760 I like that. 422 00:13:46,760 --> 00:13:49,880 So it's all about gathering information from different places 423 00:13:49,880 --> 00:13:51,000 and then putting it all together. 424 00:13:51,000 --> 00:13:51,680 Exactly. 425 00:13:51,680 --> 00:13:52,720 It's like building a puzzle. 426 00:13:52,720 --> 00:13:54,080 You have all these different pieces. 427 00:13:54,080 --> 00:13:54,560 Right. 428 00:13:54,560 --> 00:13:56,000 And when you put them all together, 429 00:13:56,000 --> 00:13:58,040 you get a complete picture of the company. 430 00:13:58,040 --> 00:14:00,640 And that helps you make a more informed decision about whether 431 00:14:00,640 --> 00:14:01,440 to invest. 432 00:14:01,440 --> 00:14:03,160 So it's not just about picking a company 433 00:14:03,160 --> 00:14:05,000 because you like their products or something. 434 00:14:05,000 --> 00:14:07,160 No, it's much more than that. 435 00:14:07,160 --> 00:14:10,640 It's about understanding their business, their financials, 436 00:14:10,640 --> 00:14:12,920 their growth potential. 437 00:14:12,920 --> 00:14:14,960 It's about seeing the big picture. 438 00:14:14,960 --> 00:14:16,480 OK, that makes sense. 439 00:14:16,480 --> 00:14:19,360 But what about those of us who don't have the time or the 440 00:14:19,360 --> 00:14:21,880 expertise to go through all those reports 441 00:14:21,880 --> 00:14:23,960 and analyze all that data? 442 00:14:23,960 --> 00:14:24,440 Right. 443 00:14:24,440 --> 00:14:25,720 Is there an easier way? 444 00:14:25,720 --> 00:14:26,400 There is. 445 00:14:26,400 --> 00:14:29,120 Remember those blue chip stocks and index funds 446 00:14:29,120 --> 00:14:30,000 we talked about earlier? 447 00:14:30,000 --> 00:14:31,000 Yeah, those sound familiar. 448 00:14:31,000 --> 00:14:33,160 Those are a great way to invest without having 449 00:14:33,160 --> 00:14:36,600 to do all that in-depth research on individual companies. 450 00:14:36,600 --> 00:14:38,240 OK, tell me more. 451 00:14:38,240 --> 00:14:40,280 Remind me why those are so appealing, 452 00:14:40,280 --> 00:14:41,560 especially for beginners. 453 00:14:41,560 --> 00:14:43,400 So blue chip stocks, remember, they're 454 00:14:43,400 --> 00:14:45,480 the big well-established companies. 455 00:14:45,480 --> 00:14:45,960 Right. 456 00:14:45,960 --> 00:14:49,160 Think Apple, Microsoft, Coca-Cola. 457 00:14:49,160 --> 00:14:49,840 OK. 458 00:14:49,840 --> 00:14:50,960 They've been around forever. 459 00:14:50,960 --> 00:14:52,920 They've got solid track records. 460 00:14:52,920 --> 00:14:55,640 And they're generally considered less risky than investing 461 00:14:55,640 --> 00:14:57,720 in smaller, newer companies. 462 00:14:57,720 --> 00:14:58,440 Gotcha. 463 00:14:58,440 --> 00:15:00,160 And then you have index funds. 464 00:15:00,160 --> 00:15:03,240 Index funds are like baskets of stocks 465 00:15:03,240 --> 00:15:06,480 that track a specific market index. 466 00:15:06,480 --> 00:15:08,040 Right, like the S&P 500. 467 00:15:08,040 --> 00:15:08,680 Exactly. 468 00:15:08,680 --> 00:15:10,040 That's a popular one. 469 00:15:10,040 --> 00:15:14,440 It includes 500 of the largest US companies. 470 00:15:14,440 --> 00:15:17,560 So when you invest in an S&P 500 index fund, 471 00:15:17,560 --> 00:15:20,360 you're basically investing in a little piece 472 00:15:20,360 --> 00:15:21,600 of all of those companies. 473 00:15:21,600 --> 00:15:22,160 Always. 474 00:15:22,160 --> 00:15:24,160 So instead of trying to pick individual stocks, 475 00:15:24,160 --> 00:15:26,200 you're getting that instant diversification. 476 00:15:26,200 --> 00:15:27,000 That's pretty cool. 477 00:15:27,000 --> 00:15:27,360 Right. 478 00:15:27,360 --> 00:15:29,160 So you're spreading your bets instead of putting 479 00:15:29,160 --> 00:15:30,280 all your eggs in one basket. 480 00:15:30,280 --> 00:15:31,280 Exactly. 481 00:15:31,280 --> 00:15:32,800 And that makes a lot of sense, especially 482 00:15:32,800 --> 00:15:33,960 if you're just starting out. 483 00:15:33,960 --> 00:15:34,440 It does. 484 00:15:34,440 --> 00:15:36,640 It's a great way to get exposure to the market 485 00:15:36,640 --> 00:15:40,120 without having to become a financial analyst overnight. 486 00:15:40,120 --> 00:15:41,880 OK, but what about taxes? 487 00:15:41,880 --> 00:15:43,080 Yes, taxes. 488 00:15:43,080 --> 00:15:44,720 Always important to keep those in mind. 489 00:15:44,720 --> 00:15:45,160 Yeah. 490 00:15:45,160 --> 00:15:48,080 Remember how Sarah talked about capital gains taxes? 491 00:15:48,080 --> 00:15:52,160 So when you sell an investment and you make a profit, 492 00:15:52,160 --> 00:15:54,320 you might have to pay taxes on that profit. 493 00:15:54,320 --> 00:15:55,960 It's called a capital gains tax. 494 00:15:55,960 --> 00:15:56,480 Right. 495 00:15:56,480 --> 00:15:58,960 And like most things in the tax world, 496 00:15:58,960 --> 00:16:00,720 it can get a little complicated. 497 00:16:00,720 --> 00:16:04,040 But the basic idea is that the amount of tax you pay 498 00:16:04,040 --> 00:16:06,040 depends on a few things, like how long you 499 00:16:06,040 --> 00:16:09,440 held the investment and your individual tax bracket. 500 00:16:09,440 --> 00:16:11,280 So it's like a little bit of a trade-off. 501 00:16:11,280 --> 00:16:12,800 You make money from your investments, 502 00:16:12,800 --> 00:16:14,480 but you might have to share some of those earnings 503 00:16:14,480 --> 00:16:15,080 with the government. 504 00:16:15,080 --> 00:16:15,760 Exactly. 505 00:16:15,760 --> 00:16:19,120 It's the price we pay for living in a civilized society. 506 00:16:19,120 --> 00:16:19,760 I guess so. 507 00:16:19,760 --> 00:16:22,200 But hey, it's still a pretty sweet deal overall. 508 00:16:22,200 --> 00:16:24,160 You get to grow your wealth and contribute 509 00:16:24,160 --> 00:16:27,600 to things like schools and roads and all that good stuff. 510 00:16:27,600 --> 00:16:28,080 True. 511 00:16:28,080 --> 00:16:28,760 True. 512 00:16:28,760 --> 00:16:32,440 So it sounds like investing is about more than just picking 513 00:16:32,440 --> 00:16:33,920 stocks and hoping for the best. 514 00:16:33,920 --> 00:16:34,400 It is. 515 00:16:34,400 --> 00:16:35,920 There's a lot more to it, but that's 516 00:16:35,920 --> 00:16:37,720 what makes it so interesting, right? 517 00:16:37,720 --> 00:16:38,800 Yeah, for sure. 518 00:16:38,800 --> 00:16:41,160 OK, so we've covered a lot of ground here. 519 00:16:41,160 --> 00:16:42,920 From the basics of what stocks are 520 00:16:42,920 --> 00:16:44,840 to different investing strategies, 521 00:16:44,840 --> 00:16:47,120 we talked about the importance of due diligence, 522 00:16:47,120 --> 00:16:50,040 and we even touched on those sometimes confusing tax 523 00:16:50,040 --> 00:16:50,800 implications. 524 00:16:50,800 --> 00:16:51,480 We did. 525 00:16:51,480 --> 00:16:54,760 And hopefully we've demystified some of those concepts 526 00:16:54,760 --> 00:16:57,240 and made investing feel a little less intimidating. 527 00:16:57,240 --> 00:16:58,600 Yeah, definitely. 528 00:16:58,600 --> 00:17:00,920 It's cool how Sarah encourages everyone 529 00:17:00,920 --> 00:17:05,760 to keep learning about investing even after watching her video. 530 00:17:05,760 --> 00:17:09,240 She even recommends some books to really dive deeper. 531 00:17:09,240 --> 00:17:09,840 She does. 532 00:17:09,840 --> 00:17:12,920 It's a constantly changing world, this whole investing thing. 533 00:17:12,920 --> 00:17:14,200 So you got to stay curious. 534 00:17:14,200 --> 00:17:14,800 Right. 535 00:17:14,800 --> 00:17:15,720 Always be learning. 536 00:17:15,720 --> 00:17:17,920 I mean, it's like anything else you're passionate about. 537 00:17:17,920 --> 00:17:20,600 You're always looking for ways to level up your skills. 538 00:17:20,600 --> 00:17:21,720 Totally. 539 00:17:21,720 --> 00:17:23,200 And speaking of learning, I thought 540 00:17:23,200 --> 00:17:26,160 it was great how Sarah emphasized starting small. 541 00:17:26,160 --> 00:17:27,480 Yeah, she really makes that point. 542 00:17:27,480 --> 00:17:29,520 You don't need to have a ton of money to get started. 543 00:17:29,520 --> 00:17:30,440 Exactly. 544 00:17:30,440 --> 00:17:33,640 Investing shouldn't be this exclusive club for the wealthy. 545 00:17:33,640 --> 00:17:34,080 Right. 546 00:17:34,080 --> 00:17:35,040 It's for everyone. 547 00:17:35,040 --> 00:17:37,280 And starting small takes a lot of the pressure off. 548 00:17:37,280 --> 00:17:38,400 Yeah, for sure. 549 00:17:38,400 --> 00:17:41,920 You can dip your toes in, learn as you go, 550 00:17:41,920 --> 00:17:44,040 and build your confidence over time. 551 00:17:44,040 --> 00:17:46,800 And we can't forget about the power of compound interest. 552 00:17:46,800 --> 00:17:49,480 Even small amounts invested regularly 553 00:17:49,480 --> 00:17:51,080 can really grow over time. 554 00:17:51,080 --> 00:17:52,240 That's the key. 555 00:17:52,240 --> 00:17:53,800 Consistency is key. 556 00:17:53,800 --> 00:17:57,000 Even if it's just a little bit each month, it all adds up. 557 00:17:57,000 --> 00:17:58,800 It's like, that snowball effect. 558 00:17:58,800 --> 00:18:00,000 Oh, I like that analogy. 559 00:18:00,000 --> 00:18:03,640 Start small, but as it rolls, it picks up more and more snow, 560 00:18:03,640 --> 00:18:04,760 gets bigger and bigger. 561 00:18:04,760 --> 00:18:05,840 Yeah, that makes sense. 562 00:18:05,840 --> 00:18:07,960 That's the beauty of compound growth. 563 00:18:07,960 --> 00:18:11,040 Your money is working for you even while you sleep. 564 00:18:11,040 --> 00:18:12,080 I love that. 565 00:18:12,080 --> 00:18:14,760 So I think one thing that holds a lot of people back 566 00:18:14,760 --> 00:18:17,400 is the fear of messing up. 567 00:18:17,400 --> 00:18:19,120 What if I make a bad investment? 568 00:18:19,120 --> 00:18:20,320 Oh, I totally get that. 569 00:18:20,320 --> 00:18:22,560 It's scary putting your hard earned money at risk. 570 00:18:22,560 --> 00:18:23,320 Right. 571 00:18:23,320 --> 00:18:25,280 But Sarah says it's OK to make mistakes, 572 00:18:25,280 --> 00:18:26,440 that it's all part of learning. 573 00:18:26,440 --> 00:18:27,520 She's absolutely right. 574 00:18:27,520 --> 00:18:29,400 Everyone makes mistakes, especially when they're 575 00:18:29,400 --> 00:18:30,240 starting out. 576 00:18:30,240 --> 00:18:32,400 The important thing is to learn from those mistakes 577 00:18:32,400 --> 00:18:33,520 and keep going. 578 00:18:33,520 --> 00:18:35,200 Don't let them discourage you. 579 00:18:35,200 --> 00:18:37,480 So it's more about progress than perfection. 580 00:18:37,480 --> 00:18:38,280 Exactly. 581 00:18:38,280 --> 00:18:40,880 It's a journey, not a destination. 582 00:18:40,880 --> 00:18:42,360 And you don't have to do it alone. 583 00:18:42,360 --> 00:18:44,760 There are so many resources out there to help you. 584 00:18:44,760 --> 00:18:45,240 Oh, yeah. 585 00:18:45,240 --> 00:18:46,040 What kind of resources? 586 00:18:46,040 --> 00:18:50,480 Books, websites, podcasts, even financial advisors. 587 00:18:50,480 --> 00:18:52,120 There's a whole community of people 588 00:18:52,120 --> 00:18:54,000 who can support you on your investing journey. 589 00:18:54,000 --> 00:18:54,920 That's awesome. 590 00:18:54,920 --> 00:18:55,840 It is. 591 00:18:55,840 --> 00:18:59,120 So as we wrap up this deep dive into investing, 592 00:18:59,120 --> 00:19:01,480 I want to leave you with something to think about. 593 00:19:01,480 --> 00:19:04,080 Knowing what you know now, how can you 594 00:19:04,080 --> 00:19:07,080 use this knowledge to make smart financial decisions 595 00:19:07,080 --> 00:19:08,040 in your own life? 596 00:19:08,040 --> 00:19:09,040 That's a great question. 597 00:19:09,040 --> 00:19:11,040 It's like taking all this information and putting it 598 00:19:11,040 --> 00:19:11,560 into action. 599 00:19:11,560 --> 00:19:12,360 Exactly. 600 00:19:12,360 --> 00:19:14,280 Empowering yourself to make choices 601 00:19:14,280 --> 00:19:16,480 that create a brighter financial future. 602 00:19:16,480 --> 00:19:16,960 Awesome. 603 00:19:16,960 --> 00:19:18,720 Well, thanks for joining us for this deep dive. 604 00:19:18,720 --> 00:19:20,280 We hope you found it helpful. 605 00:19:20,280 --> 00:19:23,000 And who knows, maybe even a little bit inspiring. 606 00:19:23,000 --> 00:19:23,440 Yeah. 607 00:19:23,440 --> 00:19:26,320 We hope you feel more confident about taking those first steps 608 00:19:26,320 --> 00:19:27,320 towards investing. 609 00:19:27,320 --> 00:19:28,200 Absolutely. 610 00:19:28,200 --> 00:19:31,320 And remember, keep learning, keep exploring, 611 00:19:31,320 --> 00:19:33,880 and don't be afraid to reach out for help along the way. 612 00:19:33,880 --> 00:19:34,840 Happy investing. 613 00:19:34,840 --> 00:19:39,400 Happy investing.