00:00:00
hi it's mark so have you ever had a
00:00:01
hundred dollars in your pocket and
00:00:03
wondered how you could turn it into a
00:00:04
thousand ten thousand or even a hundred
00:00:08
thousand dollars well sadly this isn't
00:00:10
something they teach in school come to
00:00:11
think of it it'd have been pretty
00:00:13
awesome if they had because of this lack
00:00:15
of knowledge it seems pretty scary for
00:00:16
most beginners to get started in
00:00:18
investing but in today's video i'm going
00:00:20
to simplify the whole process invest in
00:00:22
my money allow me to become a
00:00:24
multi-millionaire and guess what i
00:00:26
started with that's right a hundred
00:00:28
dollars well probably less than that to
00:00:30
be honest i'm not saying becoming rich
00:00:32
is easy but by taking calculated risks
00:00:34
you'll be able to grow your wealth over
00:00:37
time i understand everyone has a
00:00:39
different risk tolerance so today i'm
00:00:41
going to be revealing how to invest for
00:00:43
beginners with a hundred dollars and as
00:00:45
we go through the video the risk is
00:00:47
going to increase but remember as the
00:00:49
risk goes up so does the potential
00:00:51
reward i'll also be putting my money
00:00:53
where my mouth is and investing a
00:00:55
hundred dollars into each one of these
00:00:57
options so you can see exactly how to do
00:01:00
it i'm just about to invest in something
00:01:02
i never thought i'd actually do it goes
00:01:05
when someone asks me how they should
00:01:06
invest a hundred dollars i usually say
00:01:09
invest in yourself you can do this by
00:01:11
buying books and improving your skills
00:01:13
but assuming you've already done this
00:01:15
now we're going to be talking about the
00:01:16
specific places you can actually put
00:01:20
your money now i'm a businessman i'm not
00:01:22
a financial advisor these are just some
00:01:24
of the ways i've invested my money over
00:01:26
the years and they've worked for me you
00:01:28
can also sit back and relax because i'm
00:01:30
not going to try and sell you anything
00:01:32
at the end just remember if you enjoyed
00:01:34
the video then smash that like button
00:01:36
because it really helps push this video
00:01:38
out to more people and also consider
00:01:40
subscribing if you want to grow your
00:01:41
wealth the first investment is a high
00:01:43
interest savings account this is a one
00:01:46
out of ten on the risco so the lowest
00:01:48
possible risk that you can have nowadays
00:01:50
it's extremely hard to find any savings
00:01:53
account that will pay a substantial
00:01:54
amount of interest but that's not the
00:01:56
main reason it's on the list by putting
00:01:58
your money into a savings account you're
00:01:59
actually starting to create what i like
00:02:01
to call an emergency fund which i
00:02:03
believe everyone should have this is
00:02:05
money that you can access if something
00:02:07
unexpected comes up and it's extremely
00:02:10
low risk and by having money on hand you
00:02:12
can avoid getting into debt and having
00:02:14
to pay crazy fees back i remember when i
00:02:16
bought my first apartment i had a minor
00:02:18
crisis after about two months as a hot
00:02:20
water system went wrong and it needed
00:02:22
replacing because of my emergency fund
00:02:25
it saved me over 200 as i didn't have to
00:02:28
take out a payday loan when you leave
00:02:29
your money in the bank it slowly loses
00:02:31
its value so when i am looking for the
00:02:33
best savings account to combat this i
00:02:36
look for two things the first of course
00:02:38
is a good interest rate which depends on
00:02:40
the economy mostly the second thing is
00:02:42
having the ability to access my money
00:02:44
instantly some banks that are really
00:02:46
worth looking at and consistently have a
00:02:47
good rate of interest are ally bank
00:02:50
markets by goldman sachs and citibank i
00:02:52
currently have an account with markers
00:02:54
by goldman sachs and their interest rate
00:02:56
is 0.7 which isn't very high but it is
00:02:59
currently one of the best available so
00:03:01
there we go nice and easy 100 deposited
00:03:04
into my savings account now for gold
00:03:07
often referred to as a safe haven i'll
00:03:09
give this also a 2 out of 10 on the risk
00:03:12
out did you know that since the creation
00:03:14
of the federal reserve in 1913 the us
00:03:17
dollar has lost 95 percent of its value
00:03:20
so you're actually only left with five
00:03:22
percent of its original purchasing power
00:03:24
so if you want to stop your money losing
00:03:25
value then maybe gold is for you if you
00:03:28
had a hundred dollar nugget of gold in
00:03:30
the year 2000 it would now be worth
00:03:32
approximately 580.
00:03:35
the piece of gold hasn't actually
00:03:36
changed in size it's still the same
00:03:38
piece of metal but what has actually
00:03:40
changed is the value of your dollar and
00:03:42
how much gold you can buy with it gold
00:03:44
was actually our original currency used
00:03:46
by our forefathers i remember those days
00:03:49
well it's perfect as it can't be
00:03:51
manufactured and it lasts for thousands
00:03:53
and thousands of years so if you've ever
00:03:55
watched gold rush on tv you'll know how
00:03:57
hard it is to actually mine this stuff
00:03:59
out of the ground now you may be
00:04:00
wondering if it's so safe why have i
00:04:02
given it a 2 out of 10 on the risco it
00:04:05
all comes down to opportunity cost you
00:04:07
have to ask yourself if you really want
00:04:09
to just protect your 100 against
00:04:11
inflation or if you want to invest it in
00:04:13
other opportunities
00:04:14
which could make it grow a lot quicker
00:04:16
if you invest in gold then you would be
00:04:18
missing out on these potential profits
00:04:20
making it a little bit risky i would say
00:04:22
that this is the perfect investment if
00:04:24
you have a lot of money already and all
00:04:26
you want to do is just protect it there
00:04:28
are two different ways that you can
00:04:30
invest in gold the first way would be to
00:04:32
actually buy physical gold but if i
00:04:34
bought jewelry i know gold bars coins
00:04:37
and that sort of thing i'd probably be
00:04:39
paying too much because the person
00:04:40
selling it would want to make a profit
00:04:42
which means i would be paying more than
00:04:44
the true value of the gold itself the
00:04:46
alternative is to invest in gold within
00:04:49
a broker app like robin hood in the usa
00:04:51
or trading 212 in the uk then you're
00:04:54
able to buy gold at its true value and
00:04:56
have the option to sell much quicker in
00:04:58
the usa i would look for the gld etf on
00:05:01
robin hood which is one of the largest
00:05:03
gold etfs in the world as of june 2020
00:05:06
they hold over
00:05:09
million ounces of gold in vaults all
00:05:12
around the world as i'm currently in the
00:05:14
uk i'm gonna invest using trade in two
00:05:16
one two in a similar share and with just
00:05:18
a click of a button there you go i'm now
00:05:21
mr gold man if that doesn't sound
00:05:23
exciting enough for you then why don't
00:05:25
you try a simple low-cost index fund
00:05:27
i'll give this a 3 out of 10 on the risk
00:05:29
scale if you invested just 100 per month
00:05:32
into an index fund with a 7 annual
00:05:35
return then after 30 years you'd have
00:05:38
123 thousand dollars that's the power of
00:05:41
compound interest you can do all of this
00:05:43
without having any knowledge of the
00:05:45
stock market i remember when warren
00:05:47
buffett one of the richest men in the
00:05:49
world placed a million dollar bet that a
00:05:51
simple s p 500 index fund would
00:05:54
outperform a professionally picked
00:05:56
portfolio of hedge funds over a 10-year
00:05:59
period now this contest wrapped up in
00:06:01
2017 and the results were made public
00:06:05
warren buffett had actually won a
00:06:07
million dollar bet which really shows
00:06:09
the power of index funds and that the
00:06:11
everyday person can take on the pros
00:06:13
with little to no knowledge imagine an
00:06:15
index fund is like a bag of haribo
00:06:18
gummies the machine in the factory puts
00:06:20
a range of the most popular candy into
00:06:22
one bag so you can enjoy the best of the
00:06:25
best without having to pick and buy each
00:06:27
and every one individually now just
00:06:29
replace the candy with companies that's
00:06:31
what an index fund is you can buy your
00:06:33
own selection bag of the most popular
00:06:36
companies in the world such as apple
00:06:38
microsoft amazon and facebook and your
00:06:41
money is split between all of them now
00:06:43
let's go back to the haribos imagine you
00:06:45
left these on the side and they're open
00:06:47
for a few days or so they'd go hard and
00:06:49
they certainly wouldn't taste as good
00:06:51
would they but by putting them in a
00:06:52
container you can stop that from
00:06:54
happening
00:06:56
this is very much like index funds is if
00:06:58
you leave them unprotected the
00:07:00
government will start taxing you on the
00:07:01
profits you make but you can protect
00:07:03
them with a sort of container like this
00:07:06
which is known as different things in
00:07:07
different countries in america it's
00:07:10
called a roth ira and in the uk it's an
00:07:13
isa these containers allow you to
00:07:15
protect your money after tax and then
00:07:18
any profits you make are yours to keep
00:07:20
but because they're so good and they're
00:07:22
so powerful there's a cap on how much
00:07:24
you're allowed to invest each year so if
00:07:26
i was you i would take full advantage as
00:07:29
soon as possible and max out your
00:07:31
allowance there are more in-depth
00:07:33
strategies you can use but for the
00:07:35
purpose of this video i'm going to be
00:07:37
investing a hundred dollars into an s p
00:07:39
500 index fund which over the last 20
00:07:42
years has an average yearly return of
00:07:44
seven percent drop a like if you'd like
00:07:47
a full video covering this topic because
00:07:49
there's so much on this we could talk
00:07:51
about but mark a hundred dollars isn't
00:07:53
enough as the s p 500 is over three
00:07:56
thousand dollars a share well you don't
00:07:58
actually have to buy a full share to
00:07:59
invest my favorite brokers are fidelity
00:08:02
child swap and vanguard so if we head
00:08:05
over to vanguard's website now and we
00:08:07
find the s p 500 here you can see what
00:08:10
companies are in the index fund so you
00:08:12
can buy the right one so all you have to
00:08:13
do is create an account i already have
00:08:16
one and deposit some money and then
00:08:18
click there you go job done the fourth
00:08:20
way to invest is in a real estate
00:08:22
investment trust otherwise known as a
00:08:24
reit i'll also give this a three out of
00:08:26
ten on the risk scout now imagine your
00:08:28
friend collected a hundred dollars from
00:08:30
three thousand people he will have three
00:08:32
hundred thousand dollars then he takes
00:08:35
this money and he buys a property he
00:08:36
rents it out and splits it with all
00:08:38
three 000 people that helped him buy the
00:08:40
property which helps them start
00:08:42
generating some of that sweet passive
00:08:44
income that's the basic way of
00:08:46
explaining a reit it lets everyone
00:08:48
benefit from investing in income
00:08:50
producing properties without actually
00:08:52
buying one think of it like buying a
00:08:54
small share in a property let's say you
00:08:56
own the front door someone else owns the
00:08:59
windows and a few other people own all
00:09:01
the bricks but all together you own the
00:09:03
property equity reits own things like
00:09:06
offices shopping centers apartments
00:09:08
hotels and much more and they get their
00:09:11
income through the rent by law they have
00:09:13
to pass on 90 of all profits to the
00:09:16
investor like a dividend however they're
00:09:18
taxed a little differently the cool
00:09:19
thing is that at the start of 2019 the
00:09:22
10-year average return for re-etfs did
00:09:25
better than the s p 500 with an average
00:09:28
return of 10
00:09:30
if you're in the usa by investing in the
00:09:32
vg slx by vanguard you can average a 12
00:09:36
percent return which beats the average
00:09:38
real estate investor how awesome is that
00:09:40
as i'm in the uk i'm going to use the
00:09:42
trading 212 website to put a hundred
00:09:44
dollars into a similar reit it has high
00:09:47
global diversification meaning i can
00:09:49
invest in all the up and coming property
00:09:51
markets around the world the next option
00:09:54
is buying and selling items the risk on
00:09:56
this really depends on how good you are
00:09:58
at finding great deals but i'll give
00:09:59
this a i know four out of ten on the
00:10:02
risk scale the good thing about doing
00:10:03
this is that you can buy and sell
00:10:05
something that you're interested in and
00:10:06
have knowledge about which can lead to
00:10:08
bigger possible returns now i'm going to
00:10:10
invest my hundred dollars in either
00:10:12
pre-owned radio control model gear or
00:10:14
golf equipment both of these i've got an
00:10:17
interest in so i should have a
00:10:18
reasonable idea of what each item is
00:10:20
worth pokemon cards would be a great
00:10:22
area to have some expertise in as their
00:10:24
value at the moment is skyrocketing
00:10:27
logan paul just bought a charizard card
00:10:29
for over 150
00:10:31
dollars how mad is that so i've been on
00:10:34
facebook marketplace as most people have
00:10:36
access to that platform and i found
00:10:38
myself a model engine that i'm going to
00:10:39
go and try and buy it's up for 75 pounds
00:10:42
which is approximately 100 us dollars we
00:10:44
sent a few messages back and forth and
00:10:46
i'm going to go and have a look at the
00:10:47
item now
00:10:57
hello there i've come about the engine
00:11:00
oh in the box as well cool that's good
00:11:03
cool it looks right so would you take 70
00:11:06
for it no i've got 75. this box in good
00:11:09
condition
00:11:10
can you do a bit better i'll tell you
00:11:11
what i can do
00:11:15
there you go i'll throw that in really
00:11:17
that's what it came out of 75 quid
00:11:19
that's that's a deal okay there you go
00:11:21
i'll give you 75 quid there you go and
00:11:24
we're videoing this for our youtube
00:11:25
channel do you mind no that's fine all
00:11:27
right then see you again thanks a lot
00:11:29
thanks for that
00:11:32
so i've done a listing on ebay for the
00:11:34
model engine and the model plane i'm
00:11:36
going to actually advertise on a
00:11:37
specialized website for model flying as
00:11:39
i'm sure i'll be then selling to the
00:11:41
right people and hoping for big profits
00:11:43
now we're starting to get serious it's
00:11:45
time for individual stocks this gets a
00:11:48
6.5 out of 10 on the risk scale there's
00:11:50
a certain amount of risk that comes with
00:11:52
investing in individual stocks but if
00:11:54
you pick your companies well then it can
00:11:56
be really exciting is there's the
00:11:58
potential to make a lot of money during
00:12:00
a dot-com boom back in 1995 i was really
00:12:03
lucky to pick a few great stocks which i
00:12:06
cashed in and i made a lot of money in a
00:12:08
very short period of time when the
00:12:10
bubble burst some of the companies i'd
00:12:11
held on to which has cost me very little
00:12:14
went completely out of business luck and
00:12:16
timing can be a very crucial part of
00:12:18
stock investing i picked these stocks
00:12:20
using what's called fundamental analysis
00:12:22
which means i looked at the business
00:12:24
financial statements their market and
00:12:27
also the leadership of their companies
00:12:29
back then this was a lot of work but now
00:12:31
it's easily found out on yahoo finance a
00:12:34
while ago i read an article about an
00:12:36
experiment where they simulated 100
00:12:38
monkeys throwing darts
00:12:40
like this at the financial pages of a
00:12:42
newspaper the stocks the monkeys picked
00:12:45
on average outperformed the so-called
00:12:47
smartish hedge fund managers on wall
00:12:49
street so for this video i thought it'd
00:12:50
be fun to put this theory to the test i
00:12:53
don't have a monkey so i thought i'd
00:12:55
have to do so i'm going to throw a dart
00:12:57
at the board and as you can see i've
00:12:58
randomly selected 20 different stocks
00:13:01
and wherever the dart lands that's what
00:13:03
i'm going to invest in now i've just got
00:13:05
to put on a blindfold okay here we go
00:13:10
right let's see what we got
00:13:12
and we've gone into samsung
00:13:15
right so i'm going to jump straight onto
00:13:17
my brokerage account and set an order
00:13:18
for samsung
00:13:21
if you want to invest your hundred
00:13:22
dollars in individual stock then weibo
00:13:24
are currently giving away three free
00:13:26
stocks for a limited time when you
00:13:28
deposit a hundred dollars into your
00:13:29
account i'll just leave the link in the
00:13:31
description if you want to pick up those
00:13:32
free stocks so now we're going to be
00:13:34
moving into the realm of gambling and
00:13:36
speculation rather than investing number
00:13:39
seven is cryptocurrency this is a 9 out
00:13:42
of 10 on the risco so you've probably
00:13:44
heard of bitcoin this is currently the
00:13:46
most popular type of crypto if you had
00:13:48
bought a hundred dollars worth of
00:13:49
bitcoin in 2015
00:13:52
today it would have been worth around
00:13:54
about five thousand dollars that's a 5
00:13:57
000 return on your investment and that's
00:13:59
pretty unheard of therefore many people
00:14:01
that invested in bitcoin in the early
00:14:03
days became millionaires overnight but a
00:14:05
lot of people also lost money if you'd
00:14:07
invested around a hundred dollars in
00:14:09
december 2017 when bitcoin was at an
00:14:12
all-time high by december 2018 you'd
00:14:16
have had less than 17 left so really no
00:14:19
one really knows what it's going to do
00:14:21
next it's extremely risky but still very
00:14:24
attractive because it has the potential
00:14:26
to make you millions there are three
00:14:28
main types of cryptos these are ethereum
00:14:30
ripple and obviously the big one bitcoin
00:14:33
but let's just focus on bitcoin today if
00:14:35
you want to learn more about other types
00:14:37
of coins you can read something called a
00:14:39
white paper and it will give you all the
00:14:41
details the cool thing about bitcoin is
00:14:43
that it uses something called blockchain
00:14:45
and it isn't regulated by the government
00:14:47
you also can't create any more bitcoins
00:14:49
which makes inflation absolutely
00:14:51
impossible in my opinion this investment
00:14:53
will probably only make sense if you're
00:14:55
investing an extra hundred dollars that
00:14:57
you don't really need so i'm going to
00:14:58
jump onto the most popular bitcoin app
00:15:00
which is called coinbase and invest my
00:15:03
hundred dollars in bitcoin and forget
00:15:05
about it
00:15:07
by the way if you want to give this a
00:15:08
try i'll put a link to coinbase in the
00:15:10
description down below and you can pick
00:15:13
up ten dollars of free bitcoin at least
00:15:15
that gives you a bit of a head start the
00:15:17
last is definitely a full-on gamble you
00:15:19
may have guessed it already it's the
00:15:21
lotto this is definitely a 10 out of 10
00:15:24
on the risco and isn't something i would
00:15:26
recommend doing however i thought i'd
00:15:28
include it in this investing video as so
00:15:30
many people choose to do it in fact 57
00:15:33
of all americans buy at least one lotto
00:15:36
ticket per year the chance of actually
00:15:38
winning is 1 in 14 million which might
00:15:41
sound quite possible but let me just try
00:15:43
and put that into a bit of perspective
00:15:45
you're 4 000 times more likely to win an
00:15:48
oscar than win the lotto millions of
00:15:50
people lose their money every year but
00:15:52
they keep playing as the rewards are sky
00:15:55
high if you win i'm just about to invest
00:15:58
in something i never thought i'd
00:15:59
actually do it goes can i have 100
00:16:02
scratch cards please
00:16:07
lovely thank you very much thank you
00:16:08
cheers and thanks bye as you can see
00:16:11
this is going to take me quite a while
00:16:13
i'm going to leave a counter on the
00:16:14
screen so you can see how much i've
00:16:16
spent versus how much i've earned back
00:16:18
from my investment let's do this
00:16:22
[Music]
00:16:28
i hope there's a bit more in this lot
00:16:29
there's got to be hasn't it
00:16:41
so we're halfway through the most we've
00:16:43
earned so far is three dollars on one
00:16:45
ticket i'm going to need some help i've
00:16:47
got 50 more to go come on curtis i know
00:16:49
you've been itching to have a go at this
00:16:51
have you got your coin ready i do ready
00:16:54
let's race to see wait for it who can
00:16:57
find the most money in the remaining 50
00:16:59
cards ready okay on your marks get
00:17:02
set go
00:17:07
y'all ready to go
00:17:10
come on
00:17:14
15
00:17:17
really yeah no yeah
00:17:19
oh wow 15.
00:17:22
he's only just started doing this he's
00:17:24
got more than me
00:17:27
[Applause]
00:17:30
find a 2x to win two times that must be
00:17:34
ten dollars we think is that ten dollars
00:17:36
ten dollars ten dollars
00:17:38
[Laughter]
00:17:40
you say you're smashing me but i'll tell
00:17:42
you what how about this how about this
00:17:45
another dollar
00:17:46
[Music]
00:17:46
[Laughter]
00:17:48
[Music]
00:17:50
you're ready now i'm making my move
00:17:54
better
00:17:55
cause i'm coming through i'll tell you
00:17:57
what this has gotta be an astonishing
00:17:59
last four cards if we're gonna get any
00:18:01
money back from this so we just came
00:18:03
back and we double checked it we made
00:18:05
back fifty dollars from our hundred
00:18:07
dollar investment now you may think that
00:18:08
sounds pretty good but that's actually a
00:18:10
negative fifty percent return this was
00:18:13
meant to be a little bit of fun but it's
00:18:14
pretty sad to think that people play
00:18:16
this regularly and on average are losing
00:18:19
half their money when they could pick
00:18:20
any one of the other investments in this
00:18:22
video and have a much better chance of
00:18:24
being successful i hope this has taken
00:18:26
some of the mystery away from the other
00:18:28
forms of investing and made them a
00:18:29
little bit more understandable for
00:18:31
beginners if you'd like me to make a
00:18:32
part two of this video to see how these
00:18:34
investments have done over a month then
00:18:36
make sure to smash that thumbs up button
00:18:38
to let me know i'm going to leave the
00:18:39
next video here but don't click on it
00:18:41
just yet remember to subscribe to the
00:18:43
channel and ring that notification bell
00:18:45
so you don't miss out on part two okay
00:18:48
i'll see you on the other side
