Are You Investing or Gambling | BeatTheBush

You really want to make sure you know that the way you invest could very well be considered gambling. It is important to know the very distinction of when you are investing and when you are gambling when you buy a publicly trade stock. Support more videos like this along with getting a bunch of perks here: http://www.patreon.com/BeatTheBush Get a free audiobook and 30-day trial. Even if you cancel, you still keep the book and you still support my channel for signing up. Support my channel by signing up to help me make more videos like this: http://www.audibletrial.com/BeatTheBush ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ Credit Card for Starters Who Should NEVER Get a Credit Card: https://youtu.be/aNYZkMgTyb0 Only Use Credit or Only Use Debit: https://youtu.be/J0ZRgBIG39Q Credit Card Basics How Credit Card Calculates Interest: https://youtu.be/0Z2nWQdqa2A How Credit Card Grace Periods Work: https://youtu.be/8WuH3-PsjCA Difference Between Credit Card Inactivity and 0% Utilization: https://youtu.be/rtfJMZf_IrM Credit Card Statement Closing Date vs. Due Date: https://youtu.be/3-knvT7JbTk Does Canceling Credit Cards Affect Credit Score: https://youtu.be/jYGZukw5i-Q Can You Afford a No Limit Credit Card: https://youtu.be/sdAh7hzgJoU Credit Card Balance Transfer Hack: https://youtu.be/F2Foqg2ZTEw Credit Score Less Than 700 Maximize Credit Score while in College: https://youtu.be/pxGECoQoLLA Build Credit Fast with a $500 Credit Limit: https://youtu.be/attQKzngqoE How to Pay off Credit Card Debt: https://youtu.be/XY8YSPapnF8 How to Build Credit with Bad Credit or No Credit [w/ Self Lender]: https://youtu.be/RNXutBGAnlM How to Boost Your Credit Score Within 30 Days: https://youtu.be/LyBjciz4-zg Credit Score More Than 700 How to Increase Credit Score from 700: https://youtu.be/MCFKNBcyAWs 740+ is Not Just For Show: https://youtu.be/1fGcpxurzgU My Credit Score: 848, How to get it Part 1: https://youtu.be/dEZLZQXRBjQ My Credit Score: 848, How to get it Part 2: https://youtu.be/Y6-SB35C7Pc My Credit Score: 848 - Credit Card Hacks and How I got it: https://youtu.be/8Xz3hi3VWfM Advanced Credit Card Tricks How to get a Business Credit Card: https://youtu.be/S3srld5_l5Y Keep 16 Credit Cards Active: https://youtu.be/yAzkEK8Y6E8 Rejected for a New Credit Card with 826 Credit Score: https://youtu.be/66O505Oj5e4 Make Credit Cards Pay You Instead: https://youtu.be/wKMJdX1fQJA Credit Card Low Balance Cancellation $2 per mont [Still Works]: https://youtu.be/2DJjfvcMCcg Cash Back Are Credit Card Points Taxable?: https://youtu.be/Tw90h8I5JNk How to Churn Credit Cards: https://youtu.be/uw__fl38Dk4 Best Cash Back Credit Cards for 2017: https://youtu.be/e_uJweUsiDk 5% Cash Back on Everything: https://youtu.be/q9g_rySm_tI Always get 11% Off Amazon Gift Cards and Amazon Hacks: https://youtu.be/vbv6Rj2uUr4 Max Rewards: What's in My Wallet: https://youtu.be/cmJDFcbjFho How I Make 200 Dollars in 10 Minute [Hint: Credit Card Bonus]: https://youtu.be/pegq4G7ZhTI When Your Best Cash Back Card Gets Cancelled: https://youtu.be/pe7OuqxGi9M Amex Blue Cash Preferred vs. Everyday Effective Cash Back on Groceries: https://youtu.be/3ezD_QwS5e0 Double Dip Groceries Cash Back with Safeway Just for U: https://youtu.be/7kBl0W_L29U Milk the Barclays Cashforward Card for the MOST Cash Back: https://youtu.be/qf2gvrk6Evo This Channel: BeatTheBush I've obtained a high credit score of 848 out of 850 and I am glad to share the knowledge for everyone. Since 3 years ago, I've started making numerous videos that helped people increase their credit score that are free and accessible to all. Please enjoy my channel. Other Channels: BeatTheBush DIY: https://www.youtube.com/BeatTheBushDIY

Comments

1. Please stop telling your viewers to pursue individual stocks. It's a losing game in the long run, especially for those with little to no experience. You need to discuss the superior performance of no-load index funds and explain the importance of proper asset allocation.
2. nice shirt. you look like a bank of america cash reward card. I have a similar one too.
3. I bought the ETF QQQ in 2013, has gone up 76% since. Honestly, buying and holding for a majority of your portfolio is the better method for most people, including myself.
4. @BeatTheBush, did you actually read all of The Intelligent Investor? I have that book as well but never got around to finishing it. It gets a bit mundane after a while, but definitely a "must read" for me.
5. what are your thoughts on robinhood app
6. "An investment is simply a gamble in which you've managed to tilt the odds in your favor." -- Peter Lynch. So if you go back to the math of odds of beating the market relative to the risks and costs associated with it, you cannot really call picking individual stocks as investing. You are tilting your odds out of favor relative to the index funds by purchasing individual stock positions.
   
   Some people like trying to guess market cycle and overweight certain segments of the market by size and style. When you start comparing your stock picks back to size, style, and volatility (3 factor), it becomes way harder to beat the respective index than picking individual stocks. As your video showed the big tide, that big tide could be a representation of a series of index funds which most closely represents your stock picks and not just a single total stock market index.
   
   Using a large cap index to benchmark performance of stock picks tilted toward smaller value stock does not make that much sense. Follow "Intelligent Investor" and there's a tendency of tilting toward smaller value stocks which in turn tilts more toward financial services sectors more than other stocks. Small Value Index has been the best in terms of longer term returns but most of that high performance can be explained by higher standard deviation and heavy weighting in the financial sector. Is this really investing? Or is this gambling on a single sector and gambling on what you think you know?
   
   Actions speak louder than words. No matter how much Warren Buffet may have recommended the book "Intelligent Investor", Warren Buffet is allocating bulk of what he will leave his wife in the Vanguard 500 index. This is despite the fact Warren has access to his hand chosen successor(s) for managing Berkshire Hathaway after his demise, somehow, he ended up allocating most of what he will leave his wife to Vanguard Index 500 fund.
   
   Hedge fund under performance and normal actively manage funds under performing index fund are somewhat different things. One style of hedge fund are market neutral funds which attempt to take both long and short position to try to be profitable no matter which direction the stock market itself goes. Since it doesn't really participate on the market going up or going down but only participates on guesses of which stocks go up and which goes down, it really is not attempting to beat the market but serves an entirely different purpose than most mutual funds. The shorting of stock naturally costs more to manage so it isn't surprising that hedge funds under perform index fund more than most active mutual funds given the success of index funds in the U.S. Stock Market.
   
   Warren Buffet went to Columbia University. Some of his investing involves temporarily taking a director position in the business to help turn the company around. Obviously, these things are out of reach to the average middle class investor. Like Tiger Woods in golf, not everyone can become Warren Buffet or even remotely close to it. Unlike most activities, you practice and fail and learn something from it and try to get closer, the game keeps changing as you are learning. Once you think you figured something out, many others observed the same thing and try the same thing. Then they drag everyone else down with them. It's how the game is played.
7. Hi friend. Would buying an index fund without diversifying with bonds etc be super risky? I'm a little confused when I read about people like Mr. Money Mustache who says he just buys s&P500 vanguard index fund and retired at 30. What if the market crashes? wont these people have to come out of retirement or does it never dip enough to affect them considering the amounts they have invested and the 4% rule ?
8. Hi @BeatTheBush, What are your thoughts of auto-investment platforms such as Betterment?
   
   Btw, keep up the good work!
9. They should stick with the index fund
10. When I first started learning about stocks I bought 2 shares of GOPRO for $34 each and sold at about $90. I thought to myself "Damn, if only I put more money in". I have a better grasp of evaluating a stock now. Under Armour and AMD are on my watch list. Sometimes it's difficult to tell whether a company is undervalued and just going through a rough time or whether it's actually going downhill and not recovering based on all the perspectives and analysis online. Past performance and comparing competitors within its sector may give me a better idea, but you know what they say, past performance doesn't guarantee future returns.
11. I prefer Vanguard's VTSAX index fund. Low fees and decent historical returns in addition to the fact that I don't need to micromanage it.
12. What is p/e ratio?
13. Hi what would you say is a good debt(liabilities) to asset ratio in terms of personal finance? As I'm sure the "ideal" ratio will be different for companies vs personal. Also if you could do one of ur videos shirtless that would be great thanks!
14. Warren Buffet recommends thoroughly reading about the company before buying it.
15. how do you compare index fund vs ETF? which one do you think it's a better investment?
16. Really great video! Question though, how about investing in blue chip companies for a beginner in investing?