– “How many millionaires do you know “who have become wealthy byinvesting in savings accounts? “I rest my case.” So most people out thereare looking to earn some type of return for their money. And we all know that savings accounts are just not a great wayto build your wealth, and that is because interestrates are at all time lows. And when you account forthings like inflation or the increase of prices over time, you actually end up losing money when you simply put itinto a savings account. So when it comes to investing, there are primarily twodifferent strategies that people follow in orderto build their wealth. Number one, is investingin the stock market and number two isinvesting in real estate. Now, both of these avenueshave their own pros and cons, but specifically in this video today, we’re gonna covereverything you need to know to get started with investingin the stock market.Now, there’s nothing wrong with either one of these investments. In fact, in most cases,it makes sense to invest in both real estate and the stock market, which is what I have done myself and other people have as well. But the main problem withinvesting in real estate is that if you’re looking to go out there and purchase a rental property or a home, it’s going to oftentimes cost you tens of thousands of dollars, making this a high barrierto entry investment. The good thing about the stock market is it is now easier thanever before to get started and you can literally begininvesting in the stock market with $100 or less. And I’m gonna show you step-by-step, how to do this in this video today. Now that being said guys,before we jump into things here, I just have to make a disclaimer that I am not a financial advisor, this is not financial advice, and you should always do yourown research and due diligence before making any investment decisions.Also guys I’m anticipating this will be a muchlonger video than usual. So if you want to skipahead to different sections in the video, check thedescription down below, and I’ll have timestamps covering the differentsections in this video. But that being said guys, let’s jump right into it and cover the first thing you need to know about investing in the stock market.Alright, so the firstthing we have to cover here is what exactly is the stock market. Before you go out thereand invest in stocks or anything out there,you should understand what exactly it is thatyou’re investing in and what is the stock market. So the stock market is justlike any other market out there, which essentially means it’s a place where people buy and sell things. So the example I like to use is thinking about a flea market. This is where peoplewho have different items all come together and you can buy things and you can sell things all in one place. So the stock market is very simply a place where people cometogether to buy and sell stocks. But what exactly is a stock? Well, a stock is anunderlying ownership stake of a real company and specifically it is ofa publicly traded company. So not all companies out there are public there are some very largeprivately owned companies, which means that the general public is unable to buy sharesof these companies. Then you have public companies which have gone through an IPOor Initial Public Offering, which means averagepeople like you and me, the general public canactually purchase shares and own a small piece of this company.So keep that in mind when you’re looking at stocks to purchase, even if you’re justbuying a couple of shares, you’re buying a piece of a realcompany and a real business. Now, once a company goesfrom being a private company to a public company they areheld to stricter standards. They’re required to on a quarterly basis, share earnings statements and other statements with shareholders, as a means of letting investors know how that company is doing. So a lot of companies out there don’t want to be so transparentabout their earnings and things like that, so as a result theyremain private companies. However, oftentimes whencompanies go public, like this is a means forearly investors and management to actually be able to makemoney from that investment because they have this IPO and then shares trade publicly and they’re able to sella portion of their shares to make money from theirownership stake in this company. Now, unlike the supermarket like Walmart and things like that, the stock market does haveset hours when it’s open, and this is when you’re able to basically buy and sell shares of stocks.And the hours for the stock market are 9:30 a.m Eastern Standard Time to 4:00 p.m Eastern Standard Time, Monday through Friday,it’s closed on holidays and that is when you are able to transact and buy and sell stocksin the stock market. Now, some brokerages whichwe’ll explain in a little bit do allow you to trade stocksbefore the market opens and after it closes.But for the most part, most people are participatingin the stock market during normal markethours of 9:30 to 4:00 p.m. Now, one thing that’s interestingabout the stock market is as soon as the stock market opens the price for an underlying stock or fund starts changing every couple of seconds. And this is referred to as the quote for that particular stock which is essentially whatpeople are willing to pay for it and what people are willing to buy it for. And this is one of themost interesting parts about the stock market is thatprice changes all of the time based on varying market conditions. It’s kind of weird because whenyou think about real estate or antiques things like that, the price of that isn’tchanging all the time, it’s different thanreal estate for example, because when you buy a piece of property, you pay a certain price for it and then that’s basically what it’s worth.You don’t necessarily have thegiven value of that property being updated every couple of seconds. But you do have that with the stock market where that quotation priceis constantly changing, and this is simply based onthe current supply and demand for that stock. So when there’s a demand for a stock and the demand exceeds the supply, meaning more people aretrying to buy it than sell it, that price goes higher and higher, and when there’s a supply ofthat stock hitting the market, when more people are trying to sell it, less people are trying tobuy it that price goes lower. The best analogy I have for this is is thinking about purchasing gas. We know there’s been timeswhen you go to the pump and you buy a gallon of gasfor two or three dollars, and it seems relatively inexpensive. That’s because there’splenty of gas out there and not that many peopleare trying to buy it. Then there’s been other times in the past when gas prices are four or $5 a gallon, which is pretty expensive, and that is because there’smore demand for this gas then supply and as a result, that price climbs higher and higher, that same exact principlehere of supply and demand is what controls the stock market and that supply anddemand of a given stock is based on what is goingon with that company, what’s going on with thatindustry or the market as a whole.So let’s say for example, Tesla came out and they said that they had new battery technology that was better than ever before, and all of a sudden a bunch of people say, wow, I wanna buy some Tesla stock, the demand for that islikely going to be higher and there’s not gonna be as many people looking to sell shares ofTesla in the stock market. So as a result, that price climbs higher and higher and at those higher price levels, people who own sharesmade them decide, okay, I’ll part with a couple of shares, that way I can make some money. On the other hand, let’s say that there’s bad news that comes out about a company.Maybe Tesla comes out and they say, hey, our battery technology, you know, is not as far ahead as wethought it would be right now. And a bunch of Teslainvestors say, you know what? I don’t wanna own thisanymore, I’m gonna sell it at that point there’s morepeople trying to sell shares and get rid of them then there are people trying to buy them. So the price goes lower and lower as people are willing to take less and less money for those shares, but at a certain point,that price gets low enough and new investors are like, you know what? That’s the price I’m willing to pay, I’ll buy some shares of Tesla.And this supply and demand is what controls prices in anygiven even market out there just like the stock market. And then another huge factor to understand about the stock market is beyond just the individual company news or whatever’s going on in that industry, major events in the world can affect the stock market as a whole. So for example, when the global pandemic took over and businesses were closingand unemployment was going up, the stock market in generalwas seeing a lot of supply. People weren’t concernedabout owning stocks, they wanted to sell them andmove their money into cash and more people were sellingshares of everything out there then they were purchasing.So as a result of theentire market went down because there was moresupply and less demand. So you’re going to see the prices of stocks that you own change based on what’s going onwith that individual company, based on what’s going on in that industry, as well as what’s goingon with the overall market and what is going on in the world. So in summary here for this section guys, just understand that a stock is an underlying ownershipstake in a real company.And at the end of the day, the price that you’re payingfor any given stock out there is based on the current supply and demand, which could be based on something to do with the company itself or the overall market or industry. Okay, so the second thingyou have to understand about investing in the stock market is the difference betweeninvesting in individual stocks and then investing in funds. So we already coveredthis in the first section, but a stock is essentiallyan ownership stake in a real company.And a lot of people go out there and they purchase individual stocks with the goal of outperformingthe overall market, or getting a better rate of return, than what they could get bypassively investing in funds. But what exactly is a fund? Let’s cover that right now. So, a fund is simply abasket of different stocks, all lumped in together thatyou’re able to invest in through one investment. Now in the past, a lot of people would buysomething called a mutual fund, which is something thatis actively managed. So you have your money beingmanaged by somebody else and you’re paying fees to them and they take that feeto conduct research, and decide what to invest your money into.However, over the last couple of years, a lot of people have realized that these actively-managed mutual funds are oftentimes not the best investment due to the fact that the feesare significantly higher, and oftentimes they are unable to beat the average market returns. So essentially in manycases with mutual funds, you’re paying fees for somebody to try to beat the market and then they’re unable to do that. So what has become a more popularinvestment in recent years is something called an index fund where essentially you passively own a number of different companies that track an underlying market index.Now, when we’re referringto beating the market or talking about average market returns, what we are referring tohere is the average return from something called the S and P 500, which is a market index. And a market index is simply something that people use as a tool for a benchmark of how the overall market is doing as a whole. And the S and P 500 is simply 500 of the largestpublicly traded U.S companies. So these mutual funds managers would try to beat thereturn of the S and P 500 and people who go out thereand buy individual stocks are oftentimes attempting tobeat the average market return. However, if we look atstatistics and data, we know that most people are unsuccessful when it comes to beatingthe average market return. So instead people willpurchase index funds where they can passively own an index, like the S and P 500 in a verylow cost and low fee manner, because rather than paying somebody to pick these stocks for you, you just own the entire market and when the whole marketdoes well, you do well.And since there’s notmuch active management involved in that process, the fees associated with that investment are significantly lower. So you generally have two different types of investors out there, you have those who are active investors, who want to pick andchoose individual stocks or individual funds with the goal of beating average market return. Then you have the second type of investor who wants to justpassively own the market, they don’t wanna pick stocks, they don’t wanna worryabout any of that research, they simply want to own the market and not try to beat the market. And of course you can followa blend of both strategies, where you may have some individual stocks that you decide that you want to own, but you also have a portion of your money passively invested inthese low-fee index funds.Now, as far as buying these index funds, you can pretty much dothem in two different ways. Number one, you can buy themdirectly from the fund company, for example Vanguard, they offer a lot of different index funds. You can go on the Vanguard website and invest directly in these funds through Vanguard’s website or the second option which is often easier is to invest in these index funds through something called anETF or Exchange Traded Fund.This may sound complicatedguys, but it’s very simple. It is simply a way tobuy individual shares of this index fund just like a stock rather than investing directlythrough the fund company. And this does carry acouple of advantages, oftentimes you have higher liquidity, it’s easier to buy and sell, and you should check thiswith different fund companies, but in most cases, the fees associated with investing through their fund website versus the ETF are oftentimes the same. Alright guys, so in summaryhere for this section, most people out thereeither follow the strategy of picking individual stocks with the goal of beating the market, or they passively investin low-fee index funds, as a means to own the market and generate reasonable returns.In the past, mutual fundswere a lot more popular, but many people have realized that because of the high managementfees and low success rate, they’re kind of a lousy investment. Alright, so now that we understand what exactly a stockis and what a fund is, the next question to answer here is how do you actually buyand sell stocks or funds? Well, we know that you’re doing this by participating in the stock market, but it’s not as simpleas just going out there and calling up thestock market and saying, hey, let me buy some shares ofTesla or something like that.In order to buy shares of a stock or fund, you have to do this through a brokerage, which essentially is goingto place these orders on your behalf. Now the good news is in recent years, it’s become easier than ever before to participate in the stock market. And that is based on lowerfees and zero commissions as well as lower account minimums. So in the past, in order toparticipate in the stock market, you used to have to payhigh commissions per trade of anywhere from seven to $10. Every time you place a trade, you were paying thatcommission to your brokerage and many of thesecompanies had high minimums of $500 or $1000 or more. Well, now there’s a lot ofcommission-free alternatives with no minimum balances and I’m going to discuss afew of those here shortly.But essentially my best exampleto make a comparison here is buying stocks is justlike going out there and buying a new truck. Let’s say for example, you wanted to buy a Ford F-150 you wouldn’t call Ford up and say, hey, let me buy a truck, you would instead go to a car dealership, a Ford dealership and purchaseyour truck through them. A stock brokerage is simplylike a dealer for stocks, you call them up or in this case, you go on your phone and place your order, and they fill those orders for you utilizing the stock market, where people are buyingand selling shares.Now, the good news for you is that the brokerageindustry is very competitive and a lot of these upand coming brokerages are offering sign up incentives to basically incentivizeyou to utilize them, to buy and sell stocks on your behalf. So I wanna cover nowa couple of brokerages that are good for beginners and full transparency here guys, I am affiliated with these brokerages. So if you use my linksdown in the description, I may earn a smallcommission in the process, no pressure to use those guys, but it is a great way to give back to me for putting this video together and a way to support my channel at no additional cost to you.So the first platform I wannamention here is called Webull. They offer commission-freestock trading with $0 minimums, and they also offerretirement accounts for free, with no minimums, which is not something youtypically see available from different brokerages. We talked about that signup incentive earlier, what they do for you is if youopen up an account with them and you fund it with $100 or more, you’re going to get acompletely free stock worth anywhere from $8 up to $1,600 based on a lottery system.Now, Webull is a little bit more advanced with a lot of research tools and data so if you are a complete beginner, it might be a little bit overwhelming. So if you’re looking for aslightly simpler version, my second pick here is Robinhood, which is also 100%commission-free with no minimums, they’re just a lot morebasic and beginner friendly. The only thing you mightrun into with Robinhood is after you get startedand you get your feet wet, you might find it’s a bit lacking in terms of research toolsand other features out there. Robinhood is by far themost beginner friendly app out there for buyingshares of stocks and funds and they also have a sign up incentive where if you open up an account with them and you can fund it withany amount of money, you’re going to get one free stock worth anywhere from $2and 50 cents up to $200.And of course guys, if you wanna get twocompletely free stocks, you could sign up Webulland sign up for Robinhood, take both of those for a test drive and see which platformyou would like better. And then third and finallyis the main brokerage I use, which is M1 Finance. Unfortunately they don’t offer any type of sign up incentive, but if you wanna supportme by using that link, that is totally up to you. M1 Finance has a lot of great features for longterm investing suchas dividend reinvestment, they offer free prebuilt portfolios and they offer fractional shares where you don’t have tobuy entire shares of stocks in order to invest.It’s a great platform overallfor more longterm investing. But if you’re looking to tradeindividual stocks in and out on a regular basis, that’s not the best platform to choose because they only offer twotrading windows per day. Now, as far as actuallybuying and selling stocks or funds and the brokerages, I’m not going to get into detailed there because it’s gonna be slightly different based on what brokerage that you choose. But what I would recommend is once you open up your brokerage account, whichever one you choose, whether it be on my list ora different list out there, simply go to YouTube andtype in the search bar, how to buy stocks on blank and fill in the brokeragethat you’re using and there’s a lot ofhelpful videos out there that will walk you through step-by-step, how to buy stocks onthese different platforms.So, anyways guys in summaryhere for this section, in order to buy and sell stocks, you have to do so through a brokerage, which is essentially goingto place these trades on your behalf. It’s gotten a lot more competitive over the last couple of years, which is good for us because fees have been reduced to basically zero minimums are oftentimes $0 as well and a lot of these companiesoffer free stocks or promotions as a sign up incentive to basically get you to invest with them. So now we’re going to talk about how you actually makemoney in the stock market. And for some people thismay be a no brainer but I’ve had a lot of people askme this question in the past of understanding that you can go out there and you buy shares of these companies or you buy into these funds, but how do you actually make money? And there’s two differentways that you can make money when you invest in the stock market. Number one is through asset appreciation, which is essentially wherethe underlying asset, stock or fund that you buy goesup in value over time.And then number two is dividends, which is essentially cash payments from these underlying investments. And we’re gonna go ahead and explain both of these right now. Now, when we’re talkingabout asset appreciation versus dividend income, we’re actually talking abouttwo different investing styles. One of these is investing for growth and the other is investing for income. And there is such thing asa blend of both of these, where you have stocks or fundsthat have growth potential, or the potential to increase in value as well as income potentialfrom the dividends paid by the stocks. Also guys, real quick favor here, if you’ve been enjoying this video so far, please go ahead and drop alike for the YouTube algorithm and make sure yousubscribe and hit that bell for future notifications of new uploads.So, first of all, let’stalk about income investing or making money through dividends. Dividends are essentially cash payments that a company shares with investors as a means of sharing their profit. So there’s different stagesthat companies go through. You have the early stages of growth when they may not be profitable, but they’re increasingrevenue at a very fast rate that is referred to as a growth stock. But then you have these larger, more well established companies that may not be growingas fast as new companies. However, they are way moreprofitable, way more consistent and they may not have asmuch growth potential, but they do make consistent profits and they share a portion of those profits with investors in the form of dividends.Now, most dividend stocks out there are going to pay dividendson a quarterly basis. However, there are somethat pay monthly dividends, there’s also some biannualand annual dividends and so that is something to be aware of, if you are entering realmof dividend investing. And it’s important tounderstand as well here, that companies are notrequired to pay dividends. For example, Berkshire Hathaway, Warren Buffett’s holdings company there has never been paid dividends because Warren Buffett believes that he’s able to earnbetter returns for investors by reinvesting in those profits himself. However, for a lot of thesewell-established companies like Coca-Cola, or 3Mand these large companies that don’t have a ton of growth potential paying these consistentquarterly dividends is a way to keep investors around, giving them a means to earna return on their investment. So when you own a dividend paying stock, if it’s a quarterly dividend, there’s a set amount of money you’re going to receiveevery single quarter based on how many shares that you own. So, if for example, a stock paid a fivecent quarterly dividend and you had four shares of that stock.Well, every quarter you wouldearn 20 cents in dividends from that particular stock. And the way that most people keep track of how much they’re earning from dividends is something called the dividend yield. And that is simply thepercentage you’re earning back based on the priceyou’re paying per share. So for example, if youpaid $100 for a given stock and you were able to earn$5 per year in dividends from that stock based on the current price and the current dividend payment, well, that stock would havea dividend yield of 5%.And while we’re talkingabout dividend yields here, typically this is going to besomewhere in the neighborhood of 2% to 5%. So you’re not oftentimes going to find safe dividend investments out there with yields of eight or 10 or 12%. You may see this sometimeswith stocks out there. However, it’s oftentimes a bad sign and dividends are never guaranteed, companies can cut or eliminatethem at any point in time. So, just understand that a safe dividend is typically around two to 5%. If you’re looking at stockswith double digit dividends, that is almost always a red flag and something you’regoing to want to avoid. So that is the income side of investing or making money through dividends. Now let’s talk about the growth side or making money from asset appreciation. The most basic example I can give you here comes back to real estate, which is where many people have seen this type of asset appreciation. So let’s say for example, you buy a house for $200,000and then 10 years later, you go to sell that houseand you sell it for $250,000.Well, in that 10 years thatyou owned that property, that asset appreciatedin value by $50,000. Well, the same exact thing can happen with stocks and funds that you own and it all comes back to thebasics of supply and demand that we talked about in thebeginning of this video. For example in 2020, we have seen a lot of demand for Tesla stock and Amazon stock. And because there is so muchdemand for these shares, the asset has appreciated in value because the share pricewent from being lower to now being much higher.On the other side of the coin however, we’ve seen the exact opposite take place with some companies thatare falling out of favor, based on the globalpandemic that we saw here, the demand fell sharply for stocks like Macy’s and American Airlines, as many investors wereselling these stocks. So when you have a lot ofpeople buying into a stock or an industry that shareprice climbs higher and higher, and that’s how you make money through that asset appreciation, maybe you buy a stock at50 and you sell for 60, you have $10 of capital gains, and that is the asset appreciation. On the other hand, stockscan also go down in value where maybe you bought a share of an airlinestock at $40 per share and based on the overwhelming supply of new shares hitting the market now it’s down to $20 per share so you’ve lost $20 per share that you own.Now, the important thingto understand here is that in order to actually makemoney from asset appreciation or the growth of a stock or fund, you actually have to sell it. You can’t make money justfrom that going higher, you have to sell thatstock to somebody else and lock in that capital gain. So essentially, let’s say for example, you had a stock youbought at $30 per share, and now it’s at $40 per share you have made $10 per share on paper, but in order to actuallylock in that gain, you would have to sellthat stock to somebody else at a price of $40 per shareand whatever the difference is between what you paidand what you sold it for is your capital gain or capitalloss on that investment.However, the exciting thingabout income investing is that you don’t haveto sell that investment in order to make money from it because just by simplyowning dividend stocks or funds that pay dividends, you’re able to earn thatquarterly or monthly dividend or whatever the frequency is just because you own that stock. So you’re actually rewardedby owning that stock for the long run, and you don’t have to sellit in order to make money. Now, as far as dividend investing goes, the strategy that most people follow, especially when they are young, is reinvesting those quarterly dividends back into the issuing stock. So let’s say for example, you owned a bunch of Coca-Cola stock and they paid out their quarterly dividend and let’s say you made $50 in dividends. Well, rather than taking 50 bucks and going out and buyingdinner or going to the movies, you can take that $50 and putit back into Coca-Cola shares, which will allow you to earnmore dividends in the future. And this is a phenomenonreferred to as compound interest, which is where a lot of the gains from the stock market come from.You don’t take your money and run, you reinvest that moneyback into that stock and you rinse and you repeat this quarter after quarter, year after year and this is where you’re able to build large and serious massiveamounts of wealth for yourself by doing this for a verylong period of time. So back to the S and P 500, or essentially this benchmark we use to track the overall stock market. When we’re talking aboutthe overall average return from the stock market, we’re looking at collectivelythese 500 companies, how much they go up in valuecollectively altogether, or the asset appreciation as well as how much these companiescollectively pay in dividends and when you combine these two together, that gives you your annualizedreturn from the S and P 500. And based on the S and P 500 looking at the last100 years of data or so we know this is anaverage return of around eight to 10% per year, which is a realistic expectation to have when investing in the stockmarket for the long run.Now in the short term year to year, you’re not typically going tosee an eight to 10% return, you might see one yearwhere it goes up 15% and then another year whereit goes down 5% or 10% and that is because there are bull markets and there are bearmarkets or periods of time when stocks are going upor stocks are going down. But when you invest for the long run and you look at many years of data, that is the average typical return that you see from the stock market. So for example, we saw our most recent stockmarket crash or bear market earlier this year in 2020, which was immediatelyfollowed by a bull market where the market wentup for a period of time, and you have to becomfortable and understanding of these hills andvalleys within the market. But understand that over the long run, looking at a long span of time, the stock market tends to go up in value as a way to generate returns.If you just simply leave yourmoney in your savings account, you’re going to losemoney every single year. The stock market is by no means a guaranteed way to make money but when you look at it over the long run, it does generate wealth for investors and it has made a lot ofpeople rich in the process. So, anyways guys in summaryhere for this section, you make money in the stock market, either from dividends orincome or asset appreciation or growth of the underlying share price. There are some companies out there that are just fully in growth mode, where they don’t pay any dividends because they’re not profitable.Then there’s companies that don’t really have a lotof growth potential, but they pay high dividends because they are very profitable. Then you have companies in the middle that offer a blend of growth potential and income potential. We know that returns onaverage in the stock market, looking at the S and P 500 oraround eight to 10% per year, but you can’t expect tosee that every single year because the market doesn’tjust go up in a straight line.And when you’re looking atinvesting in the stock market, most people including myself would agree that money is made byinvesting in the long run not so much in the short term when the market is unpredictable. So before we get into somedifferent stocks and funds that are beginner friendly, the last thing I wanna cover here is the importance of somethingcalled diversification, or very simply not putting allof your eggs in one basket. So most people out thereachieve diversification by investing in stocks, aswell as bonds and real estate, and maybe potentiallyother things out there, like cryptocurrency,precious metals, antiques, and different uncommon assets like that. And the idea here is you don’twanna have all of your money in any one given asset, because as we have talked about already, the stock market hastimes when it’s going up and times when it’s going down and you don’t want all ofyour money in one asset, because when it goes down, your entire portfolio goes down.So let’s say maybe youhave some money in stocks and you have some in real estate and you have some money in bonds. Maybe the stock market is going down, but the real estatemarket is pretty steady and maybe the bond marketis going up as a result. You wanna have your moneydoing different things at different times, and this is achievedthrough diversification. So you can diversifyacross different assets like we just discussed butwithin the stock market, you also wanna makesure you’re diversified across different stocksand different industries. So it would not be wise to go out there and put all of your money intoTesla stock or Amazon stock or any one given stock because if somethinghappens with that company, you’re not well diversified, and you’re going topotentially take a big hit.So a general rule of thumbthat I like to follow is never put more than 20% ofyour money in any one thing, whether that be a particularstock or in cryptocurrency. I like to personally have my money spread out across allkinds of different assets, that way I’m in different markets, and I’m not gonna be heavily affected if one market does poorly and the same philosophywith the stock market, I would never put morethan 20% of my money into one given stock. Now, when you’re first getting started with the stock market, you probably don’t have aton of money to invest with. And so diversification isnot as important early on, but I would say once you start investing a couple of thousand dollarsmaybe $5,000 or more, that’s when you wanna thinkabout spreading your money out across different stocksor different industries, that way you don’t have allof your eggs in one basket. Now within the stock market, there’s a couple of different ways that people achieve diversification. Number one is differentsectors and industries, or essentially investing indifferent areas of the economy. Maybe you have some money in tech, but you also have some money in financials and you have some money in industrials, you’re putting your money in different segments of the economy.And so the idea here is if there is some kind of economic event that affects a certain industry, it’s not gonna drag down theentire market as a whole. Maybe, you know, techgets hit pretty hard, but industrials is doingpretty good during that time. So spreading your moneyout across different business segments is oneway that people diversify. Second of all, is diversifyingacross different locations. So not only investingin just the U.S market, but investing in global markets as well. Third of all is investingin different company sizes. So you’re not just investingin small companies, you’re also in medium andlarge companies as well. And then finally, like we said earlier, investing in differentassets is another way where maybe you have 80%of your money in stocks and 20% in bonds, maybe you have some moneyin real estate as well. For now if you’re brand new to this, and you’re just playing around with a couple of hundred dollars, don’t stress out too muchabout diversification but once you have a couplethousand dollars invested, keep this in the back of your mind and think about how youcan spread your money out that way you don’t have allof your money in one place.Alright guys, so the last thing I want to cover in this section here are a couple of beginnerfriendly stocks and funds that you may want to doyour own research on. Now, again, I already statedthis in the beginning guys but, I am not a financial advisor, I’m not telling you to go outthere and buy these stocks, these are not recommendations to buy, I’m simply pointing youin the right direction and I’m gonna share withyou a couple of stocks that I own in my investment portfolio. Now I am a firm believer in the fact that you shouldn’t invest incompanies that you know, and that you understand. Most of the best investments I have made are based on me buying stocks of companies that I actually use theproduct and I like the product. For example, I’m a bigfan of Apple products that is a stock in my portfolio and that is a stock Ihave done very well on and it’s because of the factthat I love Apple products, so do a lot of other people out there. So you don’t have tomake it super complicated in fact you shouldn’t, I would instead look atwhat things that you like in your world and in your life, and what are your favorite companies and think about whether or not you would want to invest in them.However, that being said ifyou’re looking for some ideas, not recommendations hereare a couple for you. First of all, Coca-Cola that is a stock in my dividend portfolio. Warren Buffet is a biginvestor in this company. They’re probably the world’smost recognizable brand, they’re time-tested, they are on the lower side of risk because of how long they’ve been around and they are a consistent dividend payer. Coca Cola, you really can’tgo wrong with this stock as a beginner in terms ofjust getting your feet wet and owning something that’s not going tomassively fluctuate in value because this is a very durabletime-tested investment. If you’re looking formore of a growth play, Amazon may be one to consider based on this current trendshifting towards E-commerce we’ve been seeing overthe last couple of years, which has been acceleratedby this global pandemic. I have owned Amazonnumerous times in the past, I’ve done very well with this stock, they’re not a dividend payer because they’re still in growth mode, but I think they are poised to benefit based on this ongoing trend we are seeing with the growth of E-commerce.After that, on my list here is Apple. And this to me is a good blendof both growth and income because they are a dividend payer, they pay a small dividend. However, there’s also stilla lot of growth potential with this company based on the fact that they are expandinginto new technologies and they’re on the cuttingedge with their devices. So Apple is a stock where youcan earn some dividend income while having the growth potential that is why Apple is a large component of my own investment portfolio. Next up we have Procter and Gamble, they make a lot ofdifferent household products that you probably used this morning without even knowing it.They have been payingdividends for 130 years and they’ve been growing their dividends year after yearconsecutively for 64 years. If you’re looking to getinto dividend investing, you really cannot go wrong with a stock like Procter and Gamble. And the last doc on my list here, which you really can’t go wrong with as a beginner is Disney. Now, they have been hit hard recently because of the closureof their theme parks, but I still think it’sa solid pick overall and this is one of those weird companies that doesn’t pay a quarterly dividend they actually pay dividendstwo times per year.But in terms of a safer and less volatile or stock that moves upand down investment, Coca-Cola, Disney, you know, you really aren’t going toget much better than that as a complete beginner, because when you’rebrand new to investing, you don’t wanna be taking risks, you don’t wanna buy something where the price changes all the time it’s gonna stress you out. Start with something simplethat’s easy to understand and maybe even a productthat you know and love like in my case investing in Apple. And then as far as index funds go, I have three examples here you may wanna do some research on.First of all, probably themost popular one is the VOO, that is the Vanguard 500 Index fund which is one of the most inexpensive ways to own the S and P 500. So when you buy VOO, you own a small piece of 500 of the largest publiclytraded companies in the U.S. So you have the potential forgrowth from those companies, as well as the income through dividends. So collectively whateverdividends are earned from those companies in thatgroup that paid dividends, those dividends are paidout on a quarterly basis from this fund. And as far as fees go, the expense ratio forthis fund is just 0.03%, which is pretty much as good as it gets.You may find some thatare lower out there, but we’re talking abouta very minuscule fee. Another fund tier is SCHV, that is the Schwab U.S.Large-Cap Value ETF where you own a diversified collection of large U.S companieswith reasonable valuations. So you’re investing in the big giants, the Titans of the United States and this is a another one that has a lower expense ratio of just 0.04%. And then lastly we have QQQ, that is Invesco QQQ whichtracks the Nasdaq 100. This is a tech heavy fund that mostly invests inbig technology names like Apple, Amazon, Facebook, Google. So this is pretty mucha diversified investment focused on tech. So a lot of young people like tech, they want to be investing in that, this is a way to do itin a diversified manner. However, the expense ratio isa little bit higher at 0.2%. So, anyways guys that’sgonna wrap up this video, thanks so much for sticking around.If you made it to the very end, leave me a comment down below, I’m always curious how manypeople watch the entire video when I do these type of marathon videos. If you feel like supporting the channel for putting this video together, feel free to check out those links down in the description below andgrab a couple of free stocks. I also have a greatarticle over on my blog Investing Simple which wouldbe a good compliment to this, which is a step-by-step guide on investing in the stock market.For beginners I’ll put a linkto that down below as well, but thanks so much for watching guys, make sure you drop a like,subscribe and hit that bell and I hope to see you in the next video. (bright music).
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