Perform You Primarily Want That Facet Hustle? | Phil Metropolis

hello you guys I am Phil city from rule 1 investing immediately I wish to ask you in case your facet hustle is absolutely making you extra money [Applause] [Music] as a reminder be sure to click on the subscribe button and the Bell icon to get notifications once I launch new movies alright you want a bit of additional pocket change all proper who would not all of us do choosing up a facet hustle or a bit of part-time job to earn a bit of more money exterior your day job nicely that is changing into increasingly more standard many individuals together with influencers and self-help gurus speak about facet hustles as a approach to earn more money whereas working much more nicely possibly you drive for uber possibly you run an Etsy store or supply up freelance writing or graphic design providers in your spare time facet hustles can add up large in the long term for certain that means some critical money in your disposable spending stash however is your web site Huff’s oh actually doing you any favors let’s speak about the way you would possibly have the ability to use your cash in another way so that you need not spend the remainder of your life working a number of jobs now first check out your spending habits by definition a facet hustle is additional and most of the people deal with it like additional it turns into disposable cash excellent for luxuries you could not usually afford you get a brand new iPhone you understand that watch you’ve got been eyeballing possibly a automotive cost for a brand new automotive and these are all nice but when your facet hustle cash is funneling straight towards these luxuries it is gonna disappear as rapidly because it’s coming within the new iPhone will grow to be out of date the flowery watch yep you are gonna get bored or it’s going to exit of fashion you get the image now once you deal with your facet hustle as additional the entire effort and time you invested in making these {dollars} will find yourself proper out the window so give it some thought like this what in case your facet hustle wasn’t a facet hustle as a lot as a device to rework your monetary future by investing as a result of a facet hustle can just do that whether or not your web site is also a ardour that you just hope to take full-time in the future or only a method to earn a number of additional {dollars} you possibly can leverage this factor to proceed working for you in the long term and meaning your facet job as one thing weighty worthwhile positively not simply additional the luxuries by investing these facet hustle {dollars} whether or not you are incomes simply 50 bucks or possibly 500 bucks you bought a shot to set your self up for a really rewarding monetary future if you happen to do it proper the absolute best method to lose your cash is to attend till it is in your hand earlier than you make a plan for the place it ought to go as a substitute sit down proper now and write down your priorities what are your private values and what are your monetary objectives what might you do to set your self up for a future that is whole monetary freedom you would possibly wish to begin by contributing extra to your retirement account discover higher investments and even make investments extra straight into your facet hustle to develop it right into a sustainable full-time large revenue job so regardless of the place you wish to go along with your profession and your funds having a spending and saving blueprint that is acquired to be the best place to begin you guys lastly pay your self first you if you happen to’ve been following me in any respect have made your self monetary guarantees and that promise has acquired to come back first out of each paycheck facet hustle or not I would like you to allocate a proportion of each greenback that you just earn to go towards protecting your promise to your self and your loved ones it doesn’t matter what that promise appears like for you for the most important attainable long-term reward try to be funneling most of your facet hustle earnings towards that promise of monetary freedom and simply protecting a bit of of it again as Mad Cash wonderful a well-deserved pat on the again for a job nicely completed my view is 10% off the highest increase proper into that investing account that’s going to finally make you wealthy after which you are able to do no matter you need so what is the ethical of this story as a substitute of simply your facet hustle money is enjoyable cash persistently make investments a big chunk of it now and you can fully change your monetary future I do know I did I do know you possibly can so now I might love to listen to from you guys do you’ve got a second job on the facet and what are you doing with that cash so depart a remark beneath along with your reply and I am going to make sure to observe up with you and thanks for watching you guys now play if you happen to loved this video and you’re feeling it was useful in educating you extra about your monetary future hit the like button and please share this video with your folks and if you would like extra investing content material subscribe to my channel and do not forget to click on the button on the display for a free reward thanks once more for watching

Make investments Your Money in What You Admire | Phil Metropolis

hello you guys I am Phil city from rule one investing and right this moment I wish to discuss to you concerning the significance of investing within the issues that you simply love [Music] as a reminder ensure you click on the subscribe button within the Bell icon to get notifications after I launch new movies in relation to investing typical knowledge says handy your cash over to a monetary advisor and allow them to diversify your investments for you why assume an excessive amount of about the place your cash’s going if you do not have to proper improper here is an issue with that mindset your values matter constantly pour in your life and efforts into the belongings you care about that is what issues that is what adjustments the world as an investor irrespective of how small you are backing an organization and serving to us succeed whenever you put your cash in it and if you cannot be ok with the businesses you are giving your cash to they in all probability do not deserve your cash now pondering it does not matter the place your cash goes within the grand scheme of issues nicely assume once more as a lot as 85% of the inventory market is managed by small investor similar to you think about the impression of these small traders that they may have in the event that they invested primarily based on their ardour and their values slightly than the values or simply the blind greed that dries monetary establishments funding choices you and your cash have a voice you get a vote each greenback is a vote you may select to put money into no matter you need wherever your passions lie and the wonderful thing about that’s that everybody values various things for instance Warren Buffett selected to put money into coca-cola as a result of consuming coke makes him comfortable amongst different causes others may select to not make investments a coca-cola like me for instance as a result of I am hooked on it as a result of they do not consider in promoting sugar to kids or to adults like me so no matter you consider there’s an organization on the market that’ll match these values now if you happen to’re undecided what investments match your values I’ve acquired a terrific obtain for you referred to as the three circles train simply click on on the hyperlink on the display screen to get it do it and also you’re gonna immediately discover what corporations match your passions your expertise and the cash you spend now taking possession of your cash and your investments what does it imply means digging just a little deeper than you used to so that you simply perceive the way in which the industries or the businesses you are invested in truly function in one other video I focus on how one can really feel extra assured in your investments and backside line it comes all the way down to doing just a little little bit of analysis just a little little bit of studying and massing that degree of information what it does is it units you up for achievement and it offers you a leg up on making sensible funding choices you do not wish to put money into one thing simply because your cousin stated ooh they’re positive to take off within the close to future or as a result of your nephew is speaking up the newest and biggest innovation within the tech world I would like you to dig deep to ensure you perceive what you are placing your cash towards I would like you to just remember to’re asking just some laborious questions concerning the working practices of any firm you are contemplating investing in and you will relaxation straightforward as a result of now you understand you probably did all the pieces you might do to face up for the belongings you consider in to place your cash towards these sorts of corporations you additionally perceive the enterprise which is nice and know that you simply’re placing your cash into one thing great that 10 years from now may be very more likely to be price much more now much more importantly keep in mind whenever you hand your funding funds over to a monetary advisor you are giving them permission to take a position your cash as they see match they usually might simply select to take a position your cash in corporations you would not select to help now as an alternative of permitting anyone else to take a position for you what I would like you to do is take cost of your investments and ensure you’re placing your cash the place your mouth is the place your passions are and most significantly the place your values lie as a result of on the finish of the day you are lots higher off understanding that you have used your assets as properly as potential to make the world a greater place and you’ve got achieved the perfect you may with what you have acquired man I am going to inform you if you happen to do this the world’s gonna be superior now I would love to listen to from you do you put money into issues that matter to you that match your values or do you solely make investments simply to make cash now depart a remark beneath along with your reply and I am going to be sure you observe up with you it is form of a scorching button for lots of people so thanks for watching you guys now go play if you happen to loved this video and really feel it was invaluable and educating you extra about investing along with your values hit the like button and please share this video with your pals and in order for you extra investing content material subscribe to my channel remember to click on the button on the display screen for a free reward thanks once more for watching

Can Hyperinflation Happen within the US? | Phil Town

hi you guys I’m Phil town from rule 1 investing in today I want to talk to you about hyperinflation and if it could happen to the US currency [Music] as a reminder make sure you click the subscribe button in the Bell icon to get notifications when I release new videos hyperinflation is a term that most people have heard before yet it’s a term that many don’t understand beyond knowing that it isn’t a good thing on that much everybody’s right few factors can cripple an economy so swiftly and so completely as hyperinflation as investors it’s really important for us to understand what the economic risk factors are that the market faces or could face in the future and with that in mind we’ll take a closer look at what hyperinflation is what it has done to countries in the past and whether or not hyperinflation is a threat that the US economy could someday face so what is hyperinflation on the surface hyperinflation is simple enough to understand inflation is defined as the decreasing value of a currencies buying power over time hyperinflation meanwhile is merely that same inflation sped up to an enormous degree so that the value of the currency rapidly by almost exponentially decreases over a really short period of time and this is the real danger of hyperinflation that this accelerated rate of inflation causes people to refuse to take the currency as something in exchange for goods and services that’s when hyperinflation damages in the country now the factors that can give rise to hyperinflation those are a little more complex than the end result itself huge debts that the government can’t afford to pay can force a government to increase the supply of money and the attempt to pay those debts to a point that is not supported by the country’s gross domestic product all of its revenues rapidly devaluing the currency so a loss in consumer confidence when this currency starts to get devaluated gives rise to hyperinflation as well for example if people lost confidence in the dollar due to a major war where they weren’t certain that the dollar would survive they might choose to hoard their money in goods and commodities instead of cash simple supply and demand would then cause those goods and commodities to spiral up in price and that forces the government to print more money to keep up with the rising cost of all the stuff they have to pay for which puts more money in the economy driving up wages which drive up costs and hyperinflation ensues now whatever the cause though hyperinflation is always detrimental to an economy economies are entirely built around confidence in a currency and confidence that the currency in question will essentially be worth as much tomorrow as it is today now you take away that confidence and economies quickly crumble hyperinflation isn’t rare however post-world War two Hungary holds the record for the most dramatic hyperinflation in history in 1944 the highest denomination note in the hungarian currency was a 1,000 Pengo by 1946 two years later the highest denomination currency note was let’s see I don’t know it’s got like 3 6 9 12 15 18 that’s 2008 whatever that is it’s a lot at its peak inflation in Hungary was increasing by 1.3 times over a thousand percent every month okay so ballpark that looks like 1,400 percent a month increasing every month that equates to inflation doubling every 15 hours so if you were to earn a dollar 15 hours later it’s worth 50 cents by the time Hungary’s hyperinflation began to stall out in July 1946 the Hungarian currency had decreased in value by 41 point 9 quadrillion percent and I don’t even how many zeros that is hyperinflation got so bad and hungry that there are stories of people pushing wheelbarrows full of cash to the grocery store to try to pay for a loaf of bread and that would be because 15 hours later they’d have to push 2 wheelbarrows hungry isn’t the only country to experience hyperinflation though many countries have dealt with hyperinflation at some point in their history the most recent being Venezuela our partner down in the South who began undergoing hyperinflation in 2016 and they continue to face hyperinflation right now so far one economist has estimated that currency in Venezuela has decreased in value by a total of over 5,000 percent just since November 2016 okay so let’s let’s let’s put that into terms of a loaf of bread let’s say down there a loaf of bread cost five pesos or whatever their dollars aren’t five pesos in November 2016 so five thousand percent increase would be let’s see I don’t know how many doubles that is let’s see if you go double once you go to ten and then twenty forty 8163 twenty six forty one thousand two hundred two thousand five hundred five thousand so I I’m ballpark means you’d have to come up with five thousand dollars to buy a loaf of bread that starts to be a problem I guess is the point now this begs the question could the United States ever face this kind of a problem the United States economy is the strongest economy in the world and the dollars by far the world’s most used and most trusted currency and it is the world’s reserve currency which means that banks all around the world national banks are holding dollars so that they can do exchanges properly now while these factors certainly limit the risk of the us facing hyperinflation believe me they don’t eliminate the risk entirely until 1933 the United States used the system called the gold standard and that meant every dollar that was printed was backed by a dollars worth of gold that the US owned in a Treasury now since the number of dollars of Circulations could always be traded for an equal amount of physical gold hyperinflation was impossible because Gold’s hard to find though there are plenty of good reasons why we moved away from the gold standard but the fact still remains we’ve opened ourselves up to the risk of inflation ever since we did and inflation we have the United States almost faced highs for inflation in the 1980s when President Reagan was forced to raise interest rates to 15% on the ten-year t bill to keep up with inflation and to knock it down and to restore American confidence in the US Treasury bonds now let me explain real quick why that works when they raised the inflation or when they raise the rate of interest being paid on US Treasury notes what happens is that the ability of people to borrow across the rest of the economy is almost put to zero people can’t buy homes people can’t get loans for starting businesses and what that does is it shuts down consumer activity and as consumer activity closes down the consumers that are at the margin of being able to make their payments fail to do so because they lose their jobs right so you lost your job now you can’t make your payments on your credit card you can’t make your payments on your house your credit cards get cut up your house gets foreclosed on and that amount of money that’s floating around in the economy in the form of debt disappears gone of course the banks aren’t real happy about that right because that’s money that they will never get back but by putting that rate of interest up at fifteen percent it forces a shrinking of the economy and a shrinking of the debt which drives inflation now the threat passed it was successful many people at that time I well remember because I was just beginning to be an investor there many people that time thought America would go into hyperinflation that no industrialized country had ever gotten to that level of interest rate and not gone into hyperinflation but we managed to get through it and the dollar stabilized now the fact that the US was at risk at hyperinflation such a short time ago should be a pretty sobering reminder we’re not immune to it one bad recession could be all that it takes for the risk of hyperinflation to start to become real again I want to tell you one more thing and that is that since Reagan raised those rates to 15 percent over 30 years ago we have had a decline in interest rates steadily down to zero and now interest rates are starting to climb back up again certainly that means that if we’re not careful hyperinflation is potentially in our future why because our debt both as a nation and as corporation debt and as individual debt is not basically setting records every single day so how do we invest if hyperinflation were to come around what should we own in an inflationary environment well first let’s understand something in the United States we’ve had an inflationary environment ever since we got a national bank our National Bank isn’t called the US National Bank it’s called the Federal Reserve they called it that entirely so that all of you guys wouldn’t realize it’s actually a National Bank that’s because Americans were really nervous that a National Bank would create inflation as national banks have done all around the world forever and indeed our national bank created inflation as well today a dollar buys let’s say twelve hundred dollars or rather twelve hundred dollars buys one ounce of gold back when they had the first start of the first of our National Bank in early 1900s twenty dollars bought an ounce of gold so we have had inflation such that the dollar buying power has declined about 96 cents so right now a dollar buys about what four cents would have bought in the early 1900’s so that’s the impact of inflation that’s bad now the impact of inflation that’s good is that wages rise people feel like they’re making more money and even though the price of things are going up it does seem as if the economy is moving forward and with that extra money that’s been put out there by the Federal Reserve and by investors cranking up debt that extra money provides for more liquidity in the market more opportunities for people to start businesses more opportunities for people to take chances and that’s what’s really driven the American economy so there’s good sides and there’s bad sides to this inflation itself is actually a target for the Federal Reserve Bank they’re targeting 2% inflation they want inflation to destroy the currency buying power at a rate of about every 35 years cutting it in half that’s what 2% inflation does so this is a built-in way that our economists are essentially trying to play the economy that means that you know just thinking about investing in the long term that 35 years from now your currency will buy about half of what it buys now if things go well now things don’t go well if we have let’s say 3% inflation which is the historical average since nineteen or the 1900s about 3% inflation then your buying power of your dollars will be reduced by 1/2 in just about 25 years okay so not 35 but 25 years that’s what we’ve actually been experiencing over the last hundred years or so so how do we invest in that environment well the most important thing in the world is to own stock or own shares of a good company because a good company can grow its internal value much much faster than inflation we call this metric of how fast a company’s gonna grow its value its return on equity in other words the money that I own that’s part of that company is called the equity and the return on equity is the money that’s earned on that equity every year I mean for example just right now if we were worried about 3% inflation what if we owned shares of a company like Apple well Apple grows its equity and an average of about 30% or more per year 30% not 3 and this is something that you can’t get with gold it’s very tough to get with commodities with farms with real estate only great companies can expand the value of that company at a rate much much faster than inflation everything else is kind of related to the inflation rate so that’s why I own companies now you can own companies one or two ways you can own the entire stock market and not have to worry about learning to invest but when you do that you go through these huge up and downs and overall you’ll probably make about seven to nine percent including dividends that’s if things go well if things go badly it’s another story things go badly the stock market could be down for 20-25 years that’s what happened from 1929 until 1955 your rate of return in a divided in a diversified mutual fund for that 26 year period zero so don’t necessarily think that it’s okay to just sit there fat dumb and happy and have some index fund and everything’s going to go well we run into a really rough time here in the economy then there could be a long period of time before a broad market fund as well now in the meantime if you can pick wonderful companies that could provide you a dividend this is what people did that did very very well during the Depression they owned wonderful companies the companies provided a large dividend relative to the price those people paid for that company and they sailed through the depression we want to do something similar to that a really wonderful business can get us through a depression it can also get us through hyperinflation because we will own this business in whatever we own whatever value of there is of the currency will be reflected in that company so as long as that company doesn’t go under we’re safe so now I’d like to hear from you guys do you think something as bad as hyperinflation could happen to the US economy and what should we do about it as an investor now leave that comment below with your answer and I’ll be sure to follow up with you and thanks for watching now go play if you enjoyed this video and you feel it was valuable teaching you more about inflation in today’s stock market hit the like button and please share this video with your friends and if you want more investing content subscribe to my channel and by the way don’t forget to click the button on the screen for a free gift thanks again for watching you

The Dangers and Rewards of Investing | Phil Metropolis

hey guys I’m Phil town from rule 1 investing and today I want to talk to you about risk vs. reward and investing and more importantly if taking more risk when you invest actually gives you more rewards or is it the other way around [Music] as a reminder make sure you click the subscribe button in the Bell icon to get notifications when I release new videos risk and reward are the yin and yang of investing both are always there though it’s certainly possible to reduce your risk and increase your reward if you follow the ruler investing strategy in my opinion now before we go about reducing risk and increasing reward though I think we first must understand what the risks and rewards are and what you can do to alter them at face value the risk in investing is the possibility that you will lose your money now this is an unfortunate risk seen as the entire point of investing is to grow your money rather than to lose it however there are a few factors that will increase this risk very substantially if you fall prey to them the first of these factors is buying a company that you don’t understand that’ll do it investing in a company requires that you believe in that company’s potential to grow its value over time however your belief in a company has to be grounded in knowledge about the company its management its future outlook right it’s moat and more for that belief to have any justification at all if you invest in a company at random just because oh I really like Facebook without understanding it you are not investing you are just gambling and gambling comes with a lot more risk to it than investing does the second factor that can increase your risk is buying a company without a proven track record of growth it’s true that past performance is not a perfect indicator of future performance but a company that has been consistently growing in value over the years it’s a lot more likely to continue growing than a company that’s been in a slump is to turn things around and start growing again finally the third factor that can increase your investing risk is buying a company that’s led by an untrustworthy management team even the most promising companies can and have crumble due to dishonest but self-involved management this may be management that is dishonest in the sense that they intentionally hide risk from their investors and dishonest in the sense that they are more interested in patting their own pocketbook than in growing the company or dishonest in the sense that they cut corners and cross the line of what’s legal and ethical to make their numbers look better in all three cases though investors in that company often end up paying the price and we want to avoid that so these three factors contribute to risk in investing more than any others and avoiding them can greatly reduce the risk you face but what about reward and investing what factors can help increase your reward well before we discuss how you can increase your potential for investing reward we first got to understand efficient market theory and to understand that it simply isn’t true efficient market theory states that the market is effective in pricing companies and pricing them at a level that reflects their true value in other words according to efficient market theory companies in the market are never overpriced and never on sale they’re always priced properly if this is true then the best thing to do would be put all your money in an index and just hope the overall market continues to grow because trying to buy an individual company becomes a 50/50 bet at any moment that you buy it that it goes up or down in other words it’s just a crapshoot if efficient market theory is right however if efficient market theory isn’t an accurate description of reality then the reality might be that the market does over price and under price companies all the time due to a wide range of factors sometimes by a major degree now this creates a new risk in investing investing in a company that’s overpriced at the time you purchase it however it also creates the potential for significant reward reward and investing comes from finding quality companies that are priced by the market at a point that is well below their real value their long-term value the efficient market theory may not be true in the sense that companies are always priced at their right value but it is true in the sense that the price of companies almost always eventually rise or fall to reflect the true value of the company at some point in time Ben Graham used to say that the stock market and the short-run is a voting machine but in the long run it’s a weighing machine and what this means is that if you purchase a company that’s under priced by the market something below its real value you can just about count on your investment growing in value over time so the key to finding those quality companies that have been under priced by the market is to find companies which you understand which you know the value of which you know management team is good and which have a durable competitive advantage and this is what rule 1 teaches you to do this is what our whole company is all about that’s what all these videos are about if you can find these companies though your rewards will almost always outweigh your risks now this is really cool how this works with rule 1 investing we think actually that we take less risk by buying a handful of great companies we understand when they’re on sale then you do by simply buying the index now I’d love to hear from you guys do you think that the stock market is risky and is that what’s keeping you from investing so leave a comment below with your answer and I’ll be sure to follow up with you and thanks for watching you guys now go play if you enjoyed this video and you feel it was valuable in teaching you more about risk and reward and investing hit the like button and please share this video with your friends and if you want more investing content subscribe to my channel and don’t forget to click the button on the screen for a free gift and thanks for watching you

The Loss of life of Worth Investing? | Phil Town

hi I’m Phil town from rule one investigator today I want to talk to you about the death of value investing as we know it [Music] as a reminder make sure you guys click the subscribe button and Bella icon to get notifications when I release new videos buying low and selling high makes a lot of sense in theory right but try and apply that to a complex moving parts of today’s stock market and it won’t look quite as simple as it sounds the truth is value investing buy low sell high that has changed a lot since it was invented by Ben Graham right in the Depression in the 1930s Ben wrote a book called security analysis in 1934 that’s the Bible of value investing but things are different with today’s market the way it is can we even find businesses on sale at all or is value investing dead value investing may not work the way it did a century ago but investors can grow wealth by utilizing value investment techniques in a new way so what is true value investing so our famous you know grandfather of ruler type investing here is Ben Graham who develop value investing strategies during the late 1920s and 1930s when the Depression started ravaging the financial landscape what he did is he looked at the financial integrity of a company’s business to see if you know the depression itself was pricing the stock improperly and he developed very specific monetary criteria for identifying stocks that had a very strong likelihood of having value higher than the price and what that means is that he looked at companies that were on sale in his view compared to the actual value and he called this kind of investing cigar but investing none these are just some of Graham’s criteria for cigar butt investing so he was looking at stocks that had an SOP bond rating of B or higher so that they had relatively good good credit he was looking at companies that had a relatively low debt ratio right of $1.00 of debt for every ten dollars they had of assets of equity rather he looked at bargain prices he wanted to review companies that had p/e ratios in the single digits okay so their price their earnings would represent one ninth or less of the price or one ninth or greater of the price I guess you could say so p/e ratios of nine eight seven six five four like that he looked at stocks that were already paying dividends right cash was coming off of them and he was looking at companies that were really really really super under priced so far under priced that you could buy those companies some of them for the cash they had in the bank – their debt in other words literally if Graham was able to buy the entire company he was paying a price that if he just stopped the company dead took the cash out paid the debt he would have what he paid for the company and he would own the company for free so that’s how cheap things work so one of the expectations that Graham set for value investing was that other investors would also uncover the intrinsic value of these stocks when other people jumped on the bandwagon then these undervalued stocks would rise toward their true value so what my Graham really rich was he would get these companies before other investors would start to realize just how cheap they were he’d get them for pennies on the dollar he called him cigar butts because some of them just didn’t work out right they were they were sued they were super cheap and they were super cheap for a reason and that reason eventually put him out of business so on you know make up for that he would buy a couple hundred of these things at a time one hundred two hundred and of course during the Depression in World War two there were companies like this all over the place so one of the things that Graham did that was really smart is that he didn’t like taking a lot of risk so he looked at what’s the company’s liquidation value you remember the Hollywood movie pretty woman so Richard Gere’s character is basically this guy that buys companies below their liquidation value when they’re in trouble and then sells off the whole company in pieces and takes his profit essentially that’s Graham’s thinking in a nutshell he would buy a company so cheap if he couldn’t just buy it for the price of the cash he knew that at least he could take the company apart and sell it out for the pieces now the problem with that is if you actually do that just like Richard Gere’s character people can come to hate you and Warren Buffett having learned this at Graham’s knee applied this principle one time in his life that I know about he went over near Omaha and another town in Nebraska and he bought a company was so cheap it was cheaper than all of the parts sold off individually and so Buffett thinking he was applying this great value strategy bought the company super cheap split it up into the pieces sold it off and what that did was caused a lot of people in that little town to lose their jobs and man did they hate the name of Warren Buffett in that town and Warren never did that again the rest of his life so you know you just got to kind of take a look at some of this stuff the way things work during the Depression you know maybe that’s not the way they work anymore so we’ve got to come up with a little bit different way of looking at companies if a stock is priced in such a way that a company’s assets are worth more than the value of the company it could be really an indication of a good deal right so we still use that we call that zombie value or zombie investing we don’t use it a lot that’s not one of the three investing methods we teach a lot because very very rare to find a company other than a bank to be for sale at a zombie price so Graham had a lot of options during the Great Depression you can still kind of view this today but it’s it’s difficult we don’t do it very often we call it zombie investing by the way because effectively what it says is I want to buy this company at a price that is as if the company is the Walking Dead and I’m just gonna put him out of its misery and sell off the pieces now Buffett took this a whole new place he was a graham disciple obviously he continued to look at super cheap prices like that thing outside of Omaha but by the 1960s this market had changed a lot Graham had retired things weren’t the way they were anymore and finding stocks Supercheap pennies on the dollar became more and more difficult and Buffett found himself having to be more and more genius like one time he was running I think coffee beans across New York trying to make a deal it got harder and harder to find companies that were on sale and harder and harder to to find ones that were on sale there were any good right you can always find companies that are cheap by value investing standards they’re single digit companies but that doesn’t mean they’re a good deal it doesn’t mean they’re actually on sale there was also the fact that some of the companies Graham is buying really sucks they were terrible companies they were run by Liars they were run by cheats they were they were bargain basements but oh my god they really lacked intrinsic value and that’s where all the risk was and so he was buying you know a couple hundred to avoid those problems and let some of those go bankrupt Charlie Munger who became Buffett’s partner persuaded Buffett around 1960 to stack kind of step away from the cheap stuff the junk and start looking for value in the company as an operating entity something that could provide intrinsic value above just the price of its assets in absence of an economic recession or depression finding real value finding where you’re getting a price below the true value of the company requires an understanding of the company’s value as a business as a business okay and that’s the critical big change Graham didn’t worry about it so much as a business he just looked at the numbers whereas Buffett and Munger look at it as a business now Graham’s world view the original value investing guy was to own stocks when others didn’t want them at all Buffett and Munger built on those principles but applied them to the kind of markets we’re in and focus on owning something really good something they called a wonderful business and buying wonderful businesses when others think they’re having a problem so value investing today in today’s economy means that you’ve got to be really patient you’ve got to have a list of wonderful businesses that you own that you’re very confident that you understand rather than just a pile of junk that meets certain economic requirements we want to own a company that we can own forever and we’re gonna get to buy that company once in a while that’s why we have to be patient these great companies don’t just go on sale for no reason they go on sale pretty much only when the entire economy goes into a recession or their industry goes into a recession value investing today requires a lot of knowledge about the business about what that business is really worth as an operating business and that’s what allows us to find a really great opportunity to buy something on sale when the market shifts value investing has made it an enormous evolution since the days of Ben Graham there are certainly a lot of investors that continue to try to invest the way Ben Graham does and call themselves value investors but Buffett and Munger are value investors of a very certain kind that we call rule one investors investors that focus on never losing money focus on a wonderful business focus on understanding what makes that business wonderful for the long-term and buying and holding these great businesses forever if we can and that is never going to change now I’d love to hear from you guys do you consider yourself a value investor and if you do are you a ruler type value investor or a Graham type value investor leave your comment below with your answer I’ll be sure to follow up with you so thanks for watching you guys now go play if you enjoyed this video and you feel it was valuable and teaching you more about value investing in today’s market hit the like button and please share this video with your friends and if you want more investing content subscribe to my channel and don’t forget to click the button on the screen for a free gift thanks again for watching

Stock Market Tricks for 2019 | Phil Metropolis

hi guys I’m Phil town from rule one investing with the new year here I’d like to give you guys a couple of stock market tips for 2019 [Music] as a reminder make sure you click the subscribe button and the Bell icon to get notifications when I release new videos all right can you believe 2018 is already getting near the end I don’t even know where the year went I’ll tell you that but I do know I’m already thinking about 2019 if you’re investing in 2019 or if you’re wondering what you should do in the coming year to put yourself in a better position financially these little stock market tips I’m about to give you might get you moving in the right direction oh and by the way remember I’m not your adviser and these are not stock recommendations this is education and entertainment only alright first if you’re me you’re getting into cash in my opinion I think you should be ready to do some serious investing toward the end of 2019 a lot of this market right now is ridiculously overpriced on a historical basis we’re talking about double what things usually are priced at you can take a guess that there will be a correction at some point probably in 2019 now when that happens you’re gonna want to be in cash and ready to pile your money into the market several months after the stock market crash has started you’re gonna pile it in when stocks that you have researched when companies you understand and you’ve put on your wish list when those go on sale a Warren Buffett has been sitting in cash for the last two years more cash than ever before in history of his investing career and I think it’s safe to say that guy knows what he’s doing all right two years ago in February he said every ten years or so there’s an economic rainstorm and when that happens it’s gonna rain gold and when it rains gold you want to walk outside with a washtub not a thimble well guess what your washtub is as much cash as you can put together you don’t want to miss your chance that comes along every ten years or so to just simply purchase the best companies in the world you don’t to miss that just cuz you didn’t have the most cash you could get ready second be patient with your money you don’t want to overthink this one of the hardest things to wrap your head around and invest is the amount of patience it actually takes amazing opportunities to invest in amazing companies at a discount are coming as sure as you hear me right now but they are not always available on good businesses and they are not always obvious you’ve got to do your research and you got to get ready remember meaning Moute management margin of safety make a great list don’t make bold moves into the market for some short-term gains rule one investors only buy when there’s fear out there we buy fear we sell greed that means we only buy on sale we never pay full price sometimes you have to wait a little longer for a great bargain but man is it worth it when you buy that thing on sale now third I want you to look out for lots of fear in this market like I said we buy fear we sell greed that’s Warren Buffett’s standard reply – how do you do great investing we buy fear we sell greed now when people are too scared to buy stocks even stocks from amazing companies that’s when rule number one investors should be ready to buy people start getting scared of investing when their portfolio takes a dip right this is their retirement money and they get scared when it starts to go down then they start selling off everything and moving to bonds so everything that’s not doing well they dump it and that could mean even the best companies in the market the market does get irrational and when you start to see a lot of fear in the market headlines concern over the economy right they’re all out there screaming oh my god the sky is falling it’s time to start looking for really great deals on amazing companies simply because people are too afraid to invest and let’s ask this question why should an emotion like fear affect whether or not we’re gonna buy an amazing company if we know for the long run it’s amazing remember we love America it’s a great great economy to invest in and it will continue to be so don’t bet against this country by failing to invest when things are on sale so finally in 2019 invest in what you love now you know what to look for meaning mote management margin of safety and you have the money to set aside to buy when the time comes you want to make sure you invest in the right companies for you and this means that you only invest in companies that you understand and here’s the big thing that match your personal values you want to change the world this is the way to do it invest in companies that you know will be around in the next ten years you invest in companies that you want to see around in the next ten years that you want to have there for your kids so when you make the move to investing companies you want to make sure you’re voting with your money to support this business right now and for the years to come and then when the company is successful you’re gonna be really happy to be a big part of that now I’d love to hear from you guys what company do you want to invest in in 2019 and how does that match your values so leave a comment below with your answer and I’ll be sure to follow up with you now thanks for watching and go play if you enjoyed this video and feel it was valuable for teaching you more about stock market tips hit the like button and please share this video with your friends and if you want a more investing content just subscribe to my channel and don’t forget to click the button on the screen for a free gift thanks again for watching

6 Substantial Monetary Dreams to Region for 2019 | Phil Town

hey everybody i’m phil town from rule 1 investing and today i want to talk to you about six great financial goals that you should make for 2019 [Music] now as a reminder make sure you click the subscribe button and the Bell icon to get notifications when I release new videos and also whenever I’m talking about goals I want to make sure we understand that the really major things we’re trying to do in our life particularly in this world we’re in to try to become financially independent to try to become financially free I don’t think having a goal of doing that is going to be sufficient I think what you have to do is make a promise to yourself goals can be really a problem so we’re gonna talk about goals today but I want you to realize that goals can also be kind of intentions that make you hmm maybe kind of take you off the hook of actually trying to get done what you’re trying to get done so for example if I say it’s my goal to see you at dinner tonight at 6 you kind of know I there’s a good chance I won’t be there right because a goal is kind of like an intention and you’re gonna remember the old saying that the road to hell is paved with good intentions so one of the problems we have with goals is I’ve got a goal to lose way and a goal to stay in shape a goal to do this and do that and it really kind of boils down to a bunch of intentions that we may or may not do so what I want you to do is I want you to form these goals we’re gonna talk about around a very serious promise to yourself that you will achieve in a very specific amount of time and the way I’d like to do it the way I’d done it in my life is just say look I’m gonna make X amount of dollars in X amount of time and I’m gonna focus on that I’m gonna write that down as a promise and sign it and date it and that’s gonna be a major focus of my life to get that done so we can’t make tons of promises right we have to have goals that will point us in the right direction but start with a major promise about your finances that you’re going to achieve now if you want to achieve your goals now these are the the sub goals that are gonna take you on that route to your promise right so if the if the promise is you know you’re going to cross the country from California to New York and you’re ending up in New York City in a year then you’re gonna have goals to get there I promise I’m going to be in New York and one year and then my goals are I’m going to you know from Los Angeles to Las Vegas in a certain amount of time and so on so goals are gonna be these steps to get to this promise that we have of having a great financial freedom so if we want to achieve these things then first thing we have to do is we have to set them now I know it’s simple all right it’s simple but it’s really true we obviously have to set these goals you have to know what it is you want to achieve if you want to achieve it and every high achiever and success guru focuses on this Warren Buffett Tony Robbins my friend buying Brian Tracy all these guys are gonna tell you that goal setting is a huge part of their success it’s a big deal to be step by step to some really really important final promise now the key to setting goals is to make a habit of setting them and then revising them as you achieve them or as you fall short of them I set new goals every year every month every week hey I even look at my goals every day and review what it is I want to achieve that day that’s what allows me to spend time fooling around on my horses when it comes to your finances it’s important that you get in the habit of setting annual goals everything we do with money revolves around a year right what’s our rate of return that’s a year what’s our compounded annual growth rate that’s a year so spend time every year before the new year to determine what you want to focus on in the coming year now to help get your finances on the right path here are some clear financial goals that I recommend you set going into the new year so first I want you to set a budget I love budgets I’m really bad at them probably you are too I know you don’t want to hear this no just the way it works but you have to set a budget particularly if you really are struggling to get to a potentially great retirement you’ve got a set of budget it’s the most important thing you can do so no matter how much money or how little money you have you set a budget here’s what I would argue I would argue that the less money you have the easier it is to set a budget because trust me when I was living off of $4,000 a year I knew exactly where my money was going you got to pay attention right if you’re living in India trying to make $4,000 stretch you got to pay attention so having no money actually taught me how to manage my money so wherever you are in your financial journey this first step is essential so budgeting is the key to getting control of your finances a budget is your map for financial accountability and responsibility I know it doesn’t sound fun and it isn’t but setting a budget allows you to exercise discipline and that’s the key when it comes down to how you spend your money it’s all about discipline for instance do you know how much money you’re gonna put into necessities versus how much you’re gonna put into savings well it’s gonna be very difficult to build wealth long term if you don’t know right so budgets are actually passed to financial freedom by managing your money you can control how and when you are able to reach your other financial goals and ultimately that financial promise you’re making to yourself second make a savings goal for yourself once you’ve set a budget it’s time to set a savings goal for this year your savings goal should be attainable but it should also be as aggressive as you can manage I like to say you should put away 10% of every paycheck so you never even see it just pay yourself first so that you never even have to think about it and then figure out how to live on the rest of it and adjust your budget accordingly remember the more you save now the more the money will multiply our compound in the market as kind of time rolls along it’s incredibly important to understand the power of compounding on the money you save now also it’s important to put aside your savings money first before you pay anything else if your savings are the first part of your budget that you pay there’ll be much less likely to get left out just pay yourself first budget off the rest third I want you to pay off bad debts so the only financial goal more important than saving and investing is saving and paying off bad debts now bad debts are a particular kind of debt they’re debt that is carrying a very high interest rate like 18% interest 15% interest that could easily end up being what you’re paying on your credit cards get rid of those because making fifteen to eighteen percent a year is fantastic investing so if you can just pay down eighteen percent credit cards that’s as if you’re making eighteen percent a year as an investor now there is good debt good debt is the kind of debt you incur when you’re investing in something when it’s about to produce an it’s an asset that produces a great return so for example if you were to borrow money to put into a house that might be really good debt because you might get a great return on that investment also investing in a college education investing in a high school education is fabulously good debt right so debt for education that’s going to that’s going to benefit you by making you more productive that making you more money is good debt bad debt when you go out there and charge stuff to impress people you don’t know who don’t care about you anyway that is the worst kind of debt in the world so stop doing that so high interest bad debt such as credit cards they work exactly the opposite of good investment they’re gonna decrease your net worth rather than grow it so paying off debts such as these should be your first priority and this year is as good a time as that eight to become debt free of bad debt now next get your credit in check so start the year off right by getting a handle on what your credit score is and the factors that affect it if your credit score ends up being lower than you would like it to be then take some steps to improve it so pay off debt and keep the balances on your credit cards low that works pretty good too getting a better credit score here’s some things that knock your credit score down you might not realize when you go out and think about applying for an automobile loan or something and maybe you go to two or three places those will tank your credit score if they run those credit score checks so be careful when you do a credit check through and then through somebody you want to buy something from particularly something big like an automobile that you ask them if they’re gonna do it in such a way that it’s gonna hurt your credit score now next set a goal to get your taxes done early like it or not tax season always comes up quicker than you think each year far too many of us make the mistake of waiting until the last minute to get your taxes organized let me tell you about a horror story alright Melissa and I always waited to the last minute our accountant our CPA would handle it and they would take care of things in the last minute they would turn him in and a few years ago they shifted from digital or from paper to digital app tax filings and our guy had to sign our documents and then he submitted them digitally that meant a signature win and that was digital three months later right after the time when you’re supposed to have done your taxes he gets a notification that we haven’t filed our taxes yet and the reason is is because we have not signed them so we needed to sign them apparently in ink and have the IRS have the original so we signed a document in ink and sent that in they lost it three months later we find out they still think we haven’t paid our taxes we sign another digital document they lost it we sent it in another digital document we don’t hear anything back we think everything’s all right fully a year later from the first letter we get another letter that says we have now been late in our taxes for over a year and we owe them one hundred and twenty thousand dollars of penalties well that’s a pretty big shock let me tell you and so we start to fight this right we go to arbitration and we think we’re in arbitration turns out we’re not in arbitration we’re in collections we don’t even realize that for six more months then as we start to find out we’re in collection the person that’s trying to collect the money from us at the IRS goes on maternity leave for three months when she comes back instead of talking to us she simply filed a lien on our house so you guys this is crazy I mean we had the money to pay the taxes so we run down to the IRS we say holy criminy you guys just leaned our houses it’s nuts what are you doing oh and by the way they realized they’d made a mistake and they just avoided all of that but they still had the lien on our house so they said well you’ve got to go down and pay this a little bit and we ran down to write a check to pay it and they said they wouldn’t take checks we said we’ll give you cash this is week we can’t pay cash we have to put you on a payment plan I mean this is you can’t make this stuff up so here’s the point avoid this stress and hassle that comes with waiting around to the last minute because things can happen and set a goal to have your tax documents fully prepared as soon as possible get ahead of the game and don’t let the bureaucracy gives you a nightmare like it gave us we got it all straightened out we love the IRS hey IRS guys we know we need you not trying to knock you down or throw you under the bus but it was a crazy time finally take some time to research companies to invest in 2019 might just be an amazing year to get amazing deals on really wonderful companies that you wouldn’t be able to get at any other time in the last decade that’s why saving and getting your finances in order is so critical and so important when the market drops and when it plummets we want to be ready to take advantage of the fire sale on wonderful companies so make it a goal to put at least five companies on a wish list in the next year now I’d love to hear from you guys do you have your goal set for 2019 what are some of your goals and what’s your big promise what are the thing you are gonna do to get yourself financially free leave a comment below with your answer I’ll be sure to follow up with you and thanks for watching now go play if you enjoyed this video and you feel it was valuable and teaching you more about your financial goals hit the like button and please share this video with your friends and if you want more investing content subscribe to my channel and don’t forget to click the button on the screen for a free gift thanks again for watching

2018 Inventory Market Recap | Phil Town

are you guys I’m Phil town from rule 1 investing today I want to recap for you what happened in the stock market in 2018 and give you a few thin predictions for 2019 [Music] as a reminder make sure you click the subscribe button in the Bell icon to get notifications when I release new videos so with 2018 coming to a close in 2019 coming right around the corner it’s time to take a look at what happened over this past year and what investors can look forward to in the coming year well none of the things I’m gonna say in this video are in any way shape or form guaranteed let me just remind you I’m being as accurate as I can be given the information that I have and I just want to remind you this is for education and entertainment only this is not in any way shape or form a recommendation or some kind of advice to you for what you should do in the next year but we all know that so with that said let’s get a dive into the recap of 2018 and the outlook for 2019 so January 2nd 2018 the first trading day of the new year the Dow Jones Industrial Average which is the major market index that I watch it has like 30 big stocks in it that pretty much are what I call quote the market that was priced at twenty four thousand eight hundred and twenty four now at the time that I’m doing this the Dow Jones is priced right at about 25 thousand so it’s basically gone nowhere in 2018 now there have been plenty of ups and downs throughout the year particularly the beginning of the year very exciting but these ups and downs have been cancelling out all the gains and losses to create very little change in the market now in spite of the fact that the markets move sideways all the way through the whole year valuations in the market I think in my opinion okay are very very high right now the Shiller p/e ratio that’s the ratio that reflects the average price of the stocks in the market divided by their earnings of all of the companies in the S&P 500 which is 500 big companies that right now is at thirty point five two it’s come down from 34 now this is almost two times larger than the average Shiller p/e ratio since going all the way back into the eight eighteen seventies that average is fifteen point seven so we’re looking at just about double here what it’s been it’s also nearing the all-time high of the Shiller p/e ratio which took place when it hit forty four in December of 2009 sorry in December of 1999 now let me just add a couple more things about the the Schiller p/e the Schiller p/e has only been over thirty I think three times in its history okay since 1870 the Schiller PD went over thirty and 1999 I’m sorry in 1929 right before the big depression it went over thirty in 1998 and stayed over thirty for a period of about a year and a half and then the market crashed in 2000 and then it went over thirty just in the last year or so and has been well over thirty for quite some time and I think that if you’ll take a look at the Schiller PE all you have to do is just Google Schiller PE and this chart will come up and you can see that every single time in the last 100 and whatever that is 50 years that the market has reached this level of pricing it has crashed in one in one time or another so I would be very strongly concerned about this if you’re trying to figure out what to do in 2019 so for those of you are trying to find a good investment opportunities we’re trying to do that in 2018 opportunities to purchase companies at an on sale price this have been really hard to find it’s been really tough a lot of companies with high valuations and that hasn’t been good news for investors like me however it looks today as if we might be on the verge of coming to an end of a very long bull market that started after the market crash in 2009 now just remind you that I basically got out there and told everybody on CNBC we’re climbing back into this market in 2009 and I could do that because we got out soon enough in 2007 so what does this mean for what we could expect in 2019 well it means that all the signs indicate we’re in for a significant correction in the market in 2019 call that a correction I’m thinking we’re in for a significant crash the other thing that I look at is called the Wilshire GDP and this is something that warren buffett has been commented on in the past where the Wilshire that is the big index of the stocks in the market you know the virtually all of the stocks that trade on the public markets take all of the value of the whole Wilshire take everything in there that’s the value of the stock market and divided by all the revenue of America which is called the gross domestic product GDP so we divide let’s say we have 18 trillion dollars of domestic revenue that’s all these companies creating revenue right and we divide that into the price of the stock market well when it’s a one-to-one ratio the stock markets fully priced so if the stock market if we’ve got 18 trillion in GDP an 18 trillion stock market Wilshire would would indicate a fully priced market much of the time the Wilshire is below that for all through the 70s it was about 20-30 percent the Wilshire was of the stock market prices of GDP rather and and then in the nineteen not late 1990s it started climbing up and then all through the 2000s it’s been very high so 1999 it climbed up and went over 120 percent that’s when Warren Buffett said hey watch out below and indeed the market crashed in 2009 it got there 2008 it got up to about a little over 100 percent and the stock market crashed right now I don’t know there’s ever been higher than this ever I’ve never seen anything indicating it has we’re at a hundred and seventy two percent that is the Wilshire which is considered fairly priced at 80 percent of GDP is now double that so I got to think that this is going south and bull markets never go forever without a correction right ten years is the record without going into a recession we’re at the record every day we don’t go into recession of setting a new record this current bull mark has been going along since 2009 it’s certainly possible it could continue well into 2019 in 2020 but the markets sideways movement in 2018 combined with high valuations across the board make me think that that’s kind of unlikely and right now the market generates generating a lot of volatility a lot of up-and-down it’s dropping five six seven hundred points in recovering five hundred points it feels very frothy and very much like we’re coming to the end of something and we’ll see what happens here far more likely I think is the possibility that we’re gonna see Corrections across the market bigger than we’ve seen so far so far we’ve seen about a 10% correction I think we’re gonna see 20% or higher as this bull market reaches the peak and begins to tumble down now I will say I was early in my call in 2007 I was early and the market went up another 10% after I decided to exit so it could happen here easily as well some companies might seem Corrections even higher than 20% right if you’re in an industry that is already really overpriced those things could drop an enormous amount and we’re seeing that in Chinese stocks like Alibaba and 10 set and so on that they’re they’re drop is bigger than than the market itself and also we’ll see certain industries that will always perform in a cyclical kind of way so for example right now chicken producers are hammered they’re having their own personal private depression auto companies are starting to go into recession already so while this is certainly some of the concerning news for investors it’s really exciting I think if you know how to prepare for this I gotta tell you it’s really cool that Warren Buffett a year ago said that every 10 years or so we have an economic rainstorm and when we have that economic storm it rains gold and what you want to do when it’s raining gold is get outside with a wash tub don’t go out there with a thimble and of course having a wash tub means you’ve got to prepare for that rainstorm that’s coming in before it gets here right so if you start selling off stocks after the markets already crashed it’s too late all right you’ll be thinking oh my gosh as soon as I sell this stock it’s gonna start going back up again and you’re probably right you got a good early and that’s of course the real trick here then that’s of course what people say you certainly can’t do you can’t call the market you can’t time market well Warren Buffett is the least market time and guy I’ve ever heard of and he’s sitting right now in 110 billion dollars in cash and he’s not timing the market and I’m not timing the market and you shouldn’t be timing the market what we’re simply doing is realizing that as this market gets higher and higher priced it becomes almost impossible to find stuff on sale and we naturally end up with a lot of cash now I’m gonna add to that cash by taking the companies that have already gone up quite a lot since way back then when I got him when they were cheap and selling those off now when they’ve already arrived at or even above what I think is their true value so those parts of the portfolio I’m gonna start clearing off unless I think there’s a really good opportunity for this company to continue going up in the future dramatically I’m gonna remove those stocks from the portfolio that are already at or above their intrinsic value or their market value so how should invest your prepare for these Corrections that I think are coming in 2019 I think the right answer is to get your shopping list of really wonderful businesses get that list set up we call that the wish list and get your cash ready there are going to be some buying opportunities coming up I do believe and those Corrections that we’re gonna see in 2019 I think are not going to come around very often they are really unusual when you think about it they happen every 5 to 7 years this one’s a really long term away but these are excellent opportunities for investors who have the cash to invest and the time to wait for the market to climb back up again this is a process that typically begins usually less than a year after a large correction and sometimes as soon as a couple of months I’m thinking this one you’ve got plenty of time I think you should be keeping the belt really tight I think you should be saving saving saving putting away as much money as you possibly can liquidating things that you don’t need right you got a race car go sell it got horses you don’t need sell them off get some cash available and believe me the best investors in the world do this as well even though they’re billionaires there’s a great story about Warren Buffett on an elevator that is going up to his floor and these guys from this insurance company are looking at Buffett and he’s looking down at the floor and down at the floor there’s a penny and they’re looking at Buffett and these guys are thinking to themselves is this guy gonna pick up the penny because he’s looking at the penny right and he doesn’t he doesn’t he doesn’t they get to Buffett’s floor the beleve door opens and he steps out and he looks back at these guys and he smiles at him and bends down and picks up the penny holds it up and goes started the next billion and the doors closed I think that’s maybe they made it up okay I don’t know I wasn’t there but it’s a great great story about a guy who definitely thinks about the value of current dollars even though he’s in his late 80s he’s thinking about the value of current dollars what he can do with those in his portfolio over the years right I mean Charlie Munger Charlie is 94 years old Charlie doesn’t even buy green bananas all right and this is a guy who is sitting in a pile of cash waiting for the market the shift to be able to buy new stocks he hasn’t bought a new stock in my knowledge for three years waiting for this market to turn so this is a discipline as part of the ruler strategy that we’ve learned from these guys for the last eighty five years in this family of rule one investors who are making generational wealth happen so if you approach 2019 with this kind of mindset and strategy I think it’s going to be a really good time I think for the first time in years we’re gonna have the opportunity to snap up a bunch of really great companies at really low prices and then it’s been a long time for me I’ve been you know working hard to try to find the few companies we can invest in but oh man when the whole market goes on sale it’s so much fun if you’ve got the washtub if you’ve got the washed up and if you do this is gonna set you up for making a really major difference in your life in the years to come now let me also deal with something that’s kind of difficult those of you who are already invested who are in 401ks with mutual funds ETFs indexes those of you who bought individual stocks and those have been rising and now they’ve kind of gone flat should you do if you know you’ve got to have a big washtub in order to take advantage of stocks when they’re on sale what should you do if everything is already fully invested in the stock market where does that wash tub gonna come from and I gotta tell you you’re gonna have to kind of make a decision here in my opinion this would be the time to exit index funds mutual funds this would be the time to start pulling back because if you wait until the market clearly is crashing it’s gonna be too late you’re gonna be down 20% already you know that if you pull your money off then you’re gonna have to take a loss because it’s gonna go straight back up this is what’s so difficult about and this is why so many advisors basically stick to this really old saw you know just buy and hold nobody can time the market you shouldn’t try and I I kind of agree with that I I’m thinking really seriously if you’re not gonna learn how to invest obviously you just have to stay with it there’s no point in you taking your money out of the market if you don’t know the companies to put it into in the future if you do know what I know and what lauren buffett knows then now is a really good time to start stacking up cash I’m not gonna say anything more than that I feel like I’m Way out on thin ice as it is with many financial advisors certainly with the SEC and I certainly don’t want you to get burned I don’t have a crystal ball this market absolutely could take off and run up another 25 percent lord knows it’s already doing magical things with Trump in the White House who knows what’s gonna happen next but for me I can only tell you what I would do and what I am doing in my opinion this is the time to start protecting yourself this is the time to pull it back this is the time to get cash this is the time to prepare for the next round of major market drops and purchases so I would say make up your own mind if you’re gonna be a rule one investor think seriously about cash right now and then just one final note if you sort of like the idea of buying stocks but you don’t like the idea of exiting the market I can completely understand that you want to kind of have the best of both worlds than what I would do stack up a lot of cash stop putting money into the market at this point at a very minimum and start stacking up cash for a washtub do it as fast as you can keep the rest of the investments there and be ready to ride through the market but get yourself the biggest washtub that you can and I think you’ll be glad you did now I’d love to hear from you guys what do you think the market has in store for us in 2019 and what are you gonna do about it leave a comment below with your answer and I’ll be sure to follow up with you and thanks for watching you guys now go play so you guys have you enjoyed this video and you feel it was valuable and teaching you more about the stock market and about what the options are for 2019 hit the like button and please share this video with your friends and if you want more investing content subscribe to my channel and don’t forget to click the button on the screen for a free gift thanks again for watching

The Risks of Vacation Spending | Phil Metropolis

hello guys I am Phil city from rule 1 investing and right this moment I feel it is essential to acknowledge the worth some folks should pay for overspending in the course of the holidays [Applause] [Music] as a reminder be sure you click on the subscribe button within the Bell icon to get notifications after I launch new movies ah the vacations day-after-day is magical and everyone seems to be jolly proper hmm effectively essentially the most magical time of the yr may simply include its personal steep price which will take the enjoyment proper out of the brand new yr effectively after all I give out my fair proportion of presents every year I positively do I wish to warning you guys in opposition to spending an excessive amount of it is fairly straightforward to throw a couple of massive presence on a bank card and neglect about it for the subsequent few months however at some point you are gonna get up and there is gonna be some main curiosity you have to pay down the highway and that may actually harm in 2018 over 100 and sixty-five million of us shopped over Black Friday weekend and the common customers spent over 300 bucks that weekend now stats from the Nationwide Retail Federation present that almost all shoppers nonetheless have half their vacation buying left to do and that is some huge cash altering palms you guys and whereas this time of yr can positively include some nice offers it is changing into extra widespread for folks to overspend in an enormous method and justify it by with the ability to buy extra issues for much less as a result of that is what they’re proper there are issues too many people put a lot stress on ourselves to outdo what we did the yr earlier than and that least overspending that may be crippling as much as the tax season and past final yr get this American customers had a mean of over $1000 in bank card debt simply from vacation spending most people surveyed say it will take them 5 months to repay that debt if that bank card has an rate of interest of fifteen level 9 % or larger which is widespread that’s going to have a large affect in your funds so let’s discuss how we will repair this okay fairly easy what you are gonna do is you are gonna decide to a spending restrict relating to presents for family and friends most individuals do not want all that further stuff that you just’re on the market attempting to get them and you can also make the vacations extra memorable by specializing in experiences collect your loved ones for a tree lighting go to an area vacation market or simply go have a shared dinner out or do what we do construct an enormous bonfire and all people come over and drink I am simply kidding – keep on with your spending finances this is the good trick simply take the cash out in money proper now stick it in an envelope and use the money to pay for presents and when that money is gone the vacation spending is over and you may go make issues in your storage and we like them simply as a lot anyway so give it some thought this manner it is probably not concerning the thousand bucks you are gonna spend on Christmas presents is it your hard-earned financial savings could possibly be constructing within the inventory market it is what you would have completed with a thousand {dollars} holy smokes that might change your life on the finish of the day the vacations are a time to point out gratitude to be grateful to your pals and your loved ones and cease to really recognize folks it does not should be about overspending and it does not should be about placing your self in debt for half of the New Yr actually folks don’t desire you to try this begin right this moment by occupied with the place you wish to be on the finish of subsequent yr and how one can take small steps proper now to start out bettering your funds that will be higher for everyone now I might love to listen to from you guys what’s your plan to correctly navigate vacation spending and hold it below management go away a remark under together with your reply and I am going to make sure to comply with up with you oh and by the way in which go make a bit reward for the Christmas tree for everyone – they’re going to adore it hey thanks for watching you guys now go play in case you loved this video and really feel it was priceless in educating you extra concerning the detrimental results of vacation spending hit the like button and please share this video with your pals and if you need extra investing content material subscribe to my channel remember to click on the button on the display screen for a free reward and thanks once more for watching