 Good day, film investors. How to know whether a stock is a goodbye or not? I put a lot of research videos but then everybody wants to know is it a goodbye now? Is it not a goodbye? Is it a sell? Which one is the stock to buy now? And then even if I do a video about what I'm buying now everybody says oh yes but the stock price can go lower of course that can always happen but in this video I really want to explain how do I find good buys when a goodbye is a goodbye for me and what the rest of the market does that's practically impossible to do but everybody wants to do it of course that's normal human nature so let's explain how to know whether something is a goodbye for you. This comes from a comment so somebody asked me what I think about REITs I don't know when but I said I didn't think about them and that was correct whenever what was that comment made now I say they are good investments and this is they're not great investments good and this is extremely important to discuss then there were other comments is this a good time to buy REITs since they went up or down so there is so much focus on stock price movements and let me explain why that is wrong if we look at US REIT ETF if we invested $10,000 in 2007 May 1 two years later you would be at $3,000 so a 70% decline so if somebody said in 2007 oh REITs are a good buy you would probably kill that person in 2009 right well fast forward 12 years or 10 years from 2009 and REITs have delivered 80% returns since 2007 that's about what 4 or 5% per year at the 4 or 5% dividend yield and you are at returns of above 10% over the last 12 years those are excellent amazing returns this means that if we go back to 2007 it was a good time to buy REITs but why am I not saying it is a good time to buy REITs now because 2009 can happen again nobody knows when that will happen and if somebody tells me oh you can predict it well where have you been in 2007 or if you can do it then you're already a trillionaire and you don't care about anything else but the question is how to buy when it is to buy that depends on you whether REITs are a good buy whenever you have to ask yourself okay what REITs am I buying what is the risk what is the reward if there is a 5% dividend yield if the REITs offer alongside cycles economy recession growth of 3, 4, 5% it means that okay if I invest in REIT now long term the return will be 10% am I happy with a 5% dividend and 5% returns coming from growth am I happy with adding a REIT that will offer me long term returns of 10% if then the REIT falls 70% as it was the case in 2009 you simply reinvest your dividends and reinvest the money or even buy more add more if you invest on a monthly basis like I do I add to one of my portfolios on a monthly basis and then your returns because you buy when they are good but you also buy when those prices are great then your returns are even higher than 10% so you have to think it okay is it a good buy for me am I happy with the current level of risk reward if you are then it is a good buy for you I haven't bought a REIT yet because I'm targeting 15% at least with low risk or even 20% if there is higher risk and I'm analyzing hundreds of investments and therefore I hope that here and there perhaps one few a few a year I'll find them and I usually do but that's because I'm focused on that if you don't have the time perhaps if you're happy with okay I'll own a few good REITs I'm happy with 6% 7% which should now be the average 4% yield 3% growth and whatever happens with the economy yes those can go down 50% nobody can time that but then you simply buy more if you are happy with the investment so the answer on whether something is a good buy or not is whether you are happy with the investment where it is now that depends on your situation your risk reward if you have a credit card that charges you 17% interest like many do then that's the best investment for you and that repaying that that is the best buy you can have not stocks not even the best stock in the world cannot compare to 17% interest rates on your credit card so everything fits someone personally and that's the question you have to ask I show you the research I show you what I do but I cannot know whether something is a good buy for you stocks can go up stocks can go down nobody knows over the long term returns are correlated to the performance of the business 2007 REITs were delivering 5% yield 3% 5% growth and those delivered over 12 years they delivered 10% there was a downturn of 70% but nobody could have known that in the past that's always a risk that's out there depending also on the REIT you are buying and then compare it to the treasuries over the last 10 years or current if you invest in the 10-year treasuries for 10 years you can expect a yield now of 2% compared to REITs that offer 7% so much much better than this and I would say therefore I say REITs are a good investment so to summarize something is a buy if you are happy with the returns if you're happy with owning the business if you are happy with being an investor if you want to buy something that goes up 50% over the next month or two well then there are thousands of stock market courses out there where they will sell you that idea that you can do that for a lot of money so be my guest and serve yourself somewhere else if you want to invest in business is where you are ready to reinvest the dividend and when you are happy when that stock goes down then please subscribe to this channel because that's what we do here we are investors we compound returns over the long term and we are happy when something we own or we are looking at goes down because we know then that over the long term our returns will be bigger bigger and bigger thank you for watching looking forward to your comments as this is a very delicate subject it fits the short term mindset is this a good buy I want to make 20% over the next two weeks by investing in Tesla NIO or something like that or is this a good investment is this a good business that will create wealth for me over the next decades thank you and I'll see you in the next video