 Good morning. Good morning everybody. Welcome. Welcome. Welcome. Russell Boer coming to your live with dedicated to financial literacy again. Be sure. I want to just remind everybody I'm going to get this out of the way. Okay, let me get this out of the way. Hit the subscribe button. Subscribe to the channel. Hit the notify bell ding ding. If you want to, you know, hear more content in the future and give me a thumbs up if you like the content. Today, we're going to, and again, my channel is based and geared towards new investors, somebody that's just beginning this investment journey, particularly stocks and bonds, a little bit of housing, real estate, and things like that. Okay, so we're going to keep it pushing. We're almost at the end of the year. And we got a couple of weeks left. And it's been a doozy this year, hasn't it been? But I wish the best for you coming up into 2022. And I believe that you're going to have a great year. I'm going to continue to speak that, speak that into existence over your life. Okay, so today, and again, this channel is geared towards new beginners, the beginners to the stock market. And what do I always say? One of my coin quotes that I always say, and that is this, if you're going to earn, you have to learn. You will not earn if you do not learn. So continue in 2022 to learn, learn, learn, learn, learn. I want to give you a little bit of advice before I go into the actual topic that I'm going to be talking about today. And that is, I was looking at one of the investment greats lectures, Peter Lynch. If you want to check it out, it's Peter Lynch 1994 lecture. It's on Cece Man. Great practical advice. He's extremely funny. He is one of the great investors of all time, ran the Fidelity Fund for years. And so he's just a lot of good practical wisdom. And I'm going to kind of repeat a couple of things that he said. And one of the things he said in that lecture, he talked about how investors, and this is really true for new investors, how a lot of new investors trade best based on price. Oh, I'm trading because it's going up. I heard that this stock is going to go up. And so I'm going to buy some. And then what happens, you end up buying that stock because you heard about it. You got a tip from a friend, or you hear it on the news or whatever. And I'm not coming against the news, CNBC in particular, they have a lot of good experts. But let me bring out my point. And that is this. If you, the stock market is not a lottery ticket. It's not the lottery where you're like, okay, I'm going to pick this stock. I heard it's going to go up. And that's the reason why I'm going to pick, I'm going to purchase this stock. And then when it ends up happening, say it goes south, it goes down. And then people get investors, new investors get discouraged. And they say, oh, the market is rigged. And what, you know, what I want to say is you're going to have to, you can't cheat in this game. You're going to have to do some research. If a company has good fundamentals, if it does, I don't care if that stock goes down to $2, say it was at $10 or $15 and it goes down to two. If that company has good fundamentals as a good balance sheet, meaning no debt, good cash flow, it's making a profit, it has a moat, meaning that this company, it's going to make money. The niche that they're in is a good niche. It's trending. People want it. It's desirable. And people are asking for this product or this service. And it is prospering. It's good, no matter what the market does, no matter. We're going to have corrections. I'll bring that point up in a second. But here's my point. If that company has good fundamentals, it will, it will come back and that stock will rise. If a company, remember, you're buying a company, not the lottery ticket. It's a company. If that company is doing well, if that company is doing well, especially if it's no debt or very little debt, and it's profiting, the profit margins are good. And you can see that this is a needed product and a service. And it's a solid company, a solid leadership team. That company will do good. But you want, you got to look to see, you got to research it. So don't just pick stocks because you heard it's going up or it's going to go up. Speculating stock picking is, will get you in trouble, new investor. I'm not saying that you won't ever get a tip. There are times when you will get a good tip and you'll get a good rush on a stock and it'll go up. But for the most part, you want to check the fundamentals. Now, this doesn't include day traders, okay? Day traders are looking at technical, they're technical analysts. I'm separating them. But for the most part, people that make money in the stock market are warned. People that are in the stock market for the long haul, long term, okay? So that's my advice pick early this morning, okay? Don't give up and don't say it's rigged if you have not did your homework, all right, if you haven't been researching the stock. And then here's another thing, pick us, get a stock that you understand. If you're going to get, say you're in a company, say you work for Amazon, it's amazing. It's amazing how so many people worked from Amazon in 2009, 2010, who do not own stock in Amazon. If an employee would have bought stock in their own company 10 years ago on Amazon, they work in Amazon and they bought stock and they've been building and building them, you know, they would be probably a millionaire and wouldn't have to work any longer at the Amazon. Excuse me. It is amazing to me how many people work in a field and they don't invest in the field that they're working in, the field that they understand. They're in healthcare, yet they have no healthcare stocks. They're in Amazon, know nothing about IT, know nothing about the cloud. You got people in IT investing in energy and oil and gas instead of Microsoft. Invest in what you can understand, what makes sense to you, understand the companies that you're investing in. Okay. All right. That's it. All right. So what I want to talk about today real quickly, I'm not going to spend a lot of time on it, but this is just a wet your whistle. And that is the difference between an ETF and stock, a single individual stock. And I kind of wrote it in blue here if you can see it, ETF, single stock or individual stock. And what's the difference? And first of all, let's look at ETF. ETF exchange traded fund. And I want to give it to you real practical and simple. All an ETF is, it's a basket of funds, a basket of companies. Instead of you owning just one stock, you own a basket of stocks. So let me give you a practical example. Here's a basket. An ETF is filled. And now it could be the same sector, or it could be several sectors. It can be industrials. It could be consumer Cypricles. It could be energy in the basket. It could be retail in the basket. It could be a number of things in that basket. So you own the whole basket when you own an ETF. And it'll be a certain percentage. So let's give you an example. Say you bought a TYB ETF. And you have Nike in that ETF. So you have a percentage, say there's like 15 or 10% of Nike in there. All right. That's in the basket. All right. And then say you, there's Starbucks. There's Starbucks in the basket. Here you have Starbucks. Same basket, a different company. And then Samsung. You have a Samsung phone, right? Samsung. So now you own Samsung or Apple. The point is an ETF is a basket of funds. It's a basket of companies. Different sectors could be the same sector. Say you got an ETF and it's all, it's all biotech. So you got a whole biotech ETF. And the advantage of that is this. Say you had this basket of stocks and Starbucks begins to tank and go down. But at the same time, Nike goes up. Which you got Starbucks going down, but Nike going up. What does that do to your portfolio? It gives you a healthy balance. So if one is going down, one may be going up or seven are going up and three go down. And what it does, it mitigates your loss. And it helps you. It's a safe place to put your money when you're first investing. So I encourage ETFs. This is my disclaimer. I'm not telling you what to invest in. I believe personally in Kathy Woods ETFs, ARK. She's got ARKG, ARKK, several ARK funds. VOO is a good one. It's the whole stock market, S&P 500. FTI is another one. There are several ones. Do your research. Look what's good for you. The great thing about Robinhood that I've just noticed is that I have a fidelity account. I have a TD Ameritrade, but I also have a Robinhood that I do mostly day trading and options with that account. But the thing that I've seen that I've noticed in Robinhood is they break down the sector. They break down the sectors and they'll tell you the top 10 holdings inside the fund. And that's good to know. So you know what's in the fund. And so I thought that was a good at it. And they're not the only platform that does that. But I thought that was a good at it tool for investors inside of Robinhood where you can actually, if you're looking at an ETF, you can actually see the sector. In other words, the industry that it's in. And then you can also see like their top 10 holdings inside the fund. So you'll know if they have J&J and there if they have Microsoft, you'll know if they have PNG or Pfizer, you'll see it there. Okay. So that's an ETF. And then the stock, we've already talked about this. Individual stock, say you own Starbucks, right? You have this individual stock, but you have no leverage if this goes down. This is a difference. And so what I usually say is having a satellite portfolio, you have an ETF and around it, you have single, single stocks that you own, like Microsoft, Starbucks, Disney. So you've got this ETF, let's say VOO, all right? VOO. And in VOO, you've got a number of companies. And you just give to that on a regular basis. You don't even have to look at it. But then you have around it, that's why we call it a satellite portfolio, you have Starbucks, then you have Nike, you have Disney, you have Samsung, and you have your individual stocks that you're investing in. Okay. So the key now, the thing about an individual stock is that say Starbucks goes up, Starbucks can go up 40, 50% in a year. VOO, it's the S&P 500. It mirrors the S&P 500. So it's going to do whatever the S&P 500 does annually. What does the S&P 500 does? Average is about 7% to 10%. Okay. And make it up to 15% or 20%. But pretty much that's the index. Okay. But this may go up 50%. This may go up 60% annually. So individual stocks, there is more of a chance to get higher gainings and higher percentage because it's an individual stock. But it also means it can decline pretty bad too. All right. So those are kind of the pros and cons. I have just given you the difference between the ETF and just a regular, owning a regular stock. And what I would say to every beginner, every beginner, get you a good ETF and put your individual stocks around it. I wouldn't say no more than three to five, starting until you learn the process and you begin to learn and grow. And then you can add to your portfolio. Okay. All right. That's it for today. I want to say thank you for listening. Thank you for watching. Have a wonderful, wonderful day. And remember, if you do not learn, you do not earn.