Do THIS To Become A Stock Market Millionaire
Published: 2024-05-03
Status:
Available
|
Analyzed
Published: 2024-05-03
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The speaker employs both passive (investing in funds) and active (investing in individual companies) stock market strategies and advises listeners to find and stick with their own suitable strategy.
"I personally am both. I have a passive investing strategy and I have an active investing strategy where I'm looking for individual companies here and I'm also investing in funds here but you have to find what is the right strategy for you and then stick with it."
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The speaker prioritizes cash flow from investments, specifically through dividend-paying ETFs, with automatic weekly investments.
"personally I like cash flow the bulk of my investments are cash flow purposes I have a system I'll tell you the different things that you can invest in here in the passive side in just a minute I have a system where every Wednesday money leaves my check-ins account and it's automatically invested into my portfolio of funds I invest in ETFs so invest in these ETFs and the bulk of these ETFs are cash FL producing meaning they're dividend pay pay ETFs"
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The speaker automatically reinvests received dividends to acquire more cash flow-producing assets, forming a cycle for passive investing.
"and then the key is as you start to get those dividends you automatically reinvest those dividends to buy more cash flow producing assets so what happens for me is every Wednesday money leaves my check-ins account and it goes to buy me these ETFs most of them are paying me with cash flow then every quarter on top of my Wednesday Investments I get this dividend check and I take that check and it goes right back into my investments to buy me even more cash flow that's how my passive investing works"
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Examples of popular ETFs are provided: VTI for total stock market exposure, DIA for Dow Jones Industrial Average exposure, and SPY for S&P 500 exposure.
"vti is an ETF so if you go out and you buy one share of vti on whatever stock brokerage you're using you're buying this ETF which gives you exposure to the total stock market the entire stock market if you go out and you buy one share of Dia this will give you exposure to the Dow Jones Industrial Average you can go and invest in something like spy Spy if you buy this ETF this will give you exposure to the s&p500 a group of the largest 500 companies on the stock market by market capitalization"
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SPYD is mentioned as an ETF for cash flow investors, specifically providing exposure to dividend-paying companies within the S&P 500.
"you can invest in funds like QQQ this will give you exposure to the NASDAQ you can invest in funds that give you exposure to something like spyd for you cash flow investors that want to invest in dividends spyd gives you exposure to the s&p500 but only companies that pay out dividends so dividend paying companies in the s P 500 if you want to invest in cash flow"
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The speaker predicts that stock market crashes are an inevitable part of the economic system, occurring roughly every decade.
"the reality is the stock market crashes the stock market goes goes up and down it's a part of our economic system we have seen a stock market crash happen every decade for the last century another stock market crash will happen when I don't know but we know that this will happen it's a part of our economic system"
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For passive investors, market downturns should be viewed as opportunities to buy more, rather than selling.
"if you are passively investing your money into the stock market if you're passively investing your money into a broad portfolio then when markets go down instead of selling you want to use them as opportunities to buy more"
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Wealth building in the stock market is determined by Time, Return, and Money (TRM). Time is uncontrollable, but Return and Money can be influenced to scale wealth.
"the longer your money is invested in the stock market the wealthier you can become number two is return the better returns that you can get the faster your money can grow the wealthier you become and number three is money the more money you invest the wealthier you become now the one factor out of trnm that we can't control is T time"
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Higher investment returns can be achieved by investing in various types of funds or by engaging in active investing.
"one way to do that is by investing in different types of funds another way to do that is by considering to actively invest your money"
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True wealth is built by investing money, not just by earning a high salary or spending it on luxuries. Increased earnings should be directed towards more investment.
"the way you become wealthy is you start investing your money and then you realize that if I invest my money I can become wealthy and then you work to earn more money not just so you can drive nicer cars and live in bigger homes but so you have more money to invest"
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Increasing the amount of money invested monthly, by earning more, directly scales wealth building potential due to compounding and dividend generation.
"instead of investing $100 a month you can invest $1,000 a month maybe you can invest $3,000 a month maybe you can invest $10,000 a month depending on how much money you're earning but if you can earn more money you have more money to put into the market and just naturally if you can put more money in more money can work to grow on compound to generate you dividends to generate you growth"
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A Spotify price increase, while angering customers, is predicted to make someone (likely an investor or owner) very rich.
"when Spotify comes out and they announce that they're going to raise prices for their services for the millionth time what happens well naturally it makes their customers very angry because now I have to pay more money to listen to stuff on Spotify but on the other end of that same coin that very same news is making somebody very rich"
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