 What's happening guys, so I've made videos in the past where I talk about what the best investments you can make are and The top two are always gonna come out as either real estate or certain types of stocks now in my opinion real estate is amazing It's great, but the downside of it is it also takes a lot of time Investment expertise in order to get to the point where you are good at it And you're making a lot of money because the truth is almost everybody messes up on their first house Even Graham Steffen, who is a really smart guy great youtuber Pretty much like a real estate genius and a very smooth operator And on top of all that he's the one who taught me the secrets to smashing the like button But anyways, he was a real estate agent for several years He knew his way around the real estate business all the ins and outs and even he ended up losing tens of thousands of dollars And that cost me a little bit over a year's worth of rent on his very first tenant When he bought his very first house and this shows that it's almost impossible to get everything right on your very first try And that's why 70% of Millennials regret buying a house So in this video, I'm gonna be exclusively focusing on investing in stocks And I'm gonna break it down into three categories the easiest way to invest in stocks the funnest way to invest in stocks and Finally the most profitable way to invest in stocks and as always I'm gonna over deliver And I'm gonna show you how you can choose which type of investing is gonna be best Okay, so starting off first the easiest way to invest by far is to smash the like button No, but seriously, I really would appreciate it. So thank you very much if you do that it helps a lot with the algorithm So the easiest way to invest in stocks in my opinion And 2020 is to basically invest in one of these apps like Robinhood m1 finance acorns Something along those lines we bull is another really good one these are all the new generation of investing apps and what they basically do is they make investing Unbelievably easy like they could not make it any more simple take acorns for example Where it just simply attaches to your debit card takes a tiny little bit out of each purchase So maybe it'll take two cents here 30 cents there and it automatically invests it for you So it basically just invests your spare change. So if you spend two dollars and 89 cents on something It'll invest the rest of the 11 cents to make it an even three dollars It also does all the work diversifying your portfolios for you You just choose a few things that you personally want to go for and then bam It takes like 10 minutes to set up. I've personally been using it and it's been really nice And if you're a teenager, you're under the age of 18 watching this video You can open up what's known as a custodial account on a lot of these different apps Where it's technically under your parents name, but you get to use it And so therefore you're investing you're still earning money even though you're a minor now I personally think that is ridiculously awesome and every parent if you're a parent watching this video You should be doing this and teaching your kids at the youngest age possible to start investing Now acorns is probably the easiest on the list just because it automatically invests for you It's just it's it's totally foolproof But all of the other apps on the list might take an extra 5 or 10 minutes to set up at most And then you can just automate everything as well And there's also this new thing called robo investors or robo advisors like betterment or wealthfront And basically what that is is it's an algorithm driven robot that replaces your financial planner And it needs little to no human supervision. This basically replaces hedge fund managers or financial advisors at a fraction of the price Now second on this list We're going to go over the funnest way to invest And I personally believe that the funnest way is by researching and investing in individual stocks that you believe in And I think a really obvious example of this right now is tesla I mean everybody's going nuts about tesla and can you really blame them? Elon musk is an incredible leader. They're making amazing products and they're changing the world There are channels on youtube that are popping up right now that Exclusively talk about tesla and they're getting like a hundred thousand views for every single video And I do think this is the funnest way to invest but let's be honest It's a little bit like gambling when you invest in a company What you're basically saying is that you think that company is undervalued and soon the company's value Aka their stock is going to go up And it's really fun reading about the news in the stock and trying to anticipate how different events that are happening in the world Are going to affect the prices of a stock and one example of this is how tesla stock dropped nine percent One day after elan musk had a little bit too much fun on the joe rogan podcast There's also an obvious element of competition here It kind of seems like you're competing against everybody else and you're trying to like outsmart the market and outsmart other people that are investing as well And obviously you wouldn't want to just put all of your money in one stock You need to diversify it throughout at least like five ten probably even more than that To be even a little bit safe and you don't want to put all of your stocks in like the technology market or Medical or anything like that you want to diversify them throughout different industries And maybe even different countries as well And in my opinion the best type of stock picking is going to be dividend investing And that's basically where companies as a little thank you every month or three months will pay you a little bit of money Usually it's not too much, but it's a significant amount. It's nice Just as a way to say hey, thank you for investing in our company We really appreciate your loyalty Thank you And I think the best way to start doing this would be to start either a robin hood account or a wee bowl account You'd want to put a little bit of money into it and then just start doing research and investing just a little bit of money Because chances are when you first start you're not going to do too well So don't you know risk too much But there's no fees for buying or selling stocks So this is great for a beginner and if you don't want to risk any money Or you don't want to have any skin in the game You can also just use an investing simulator where it's Simulates the real market and you invest fake money basically and see how you would have done if that money were real This way you can learn all the beginner stuff and get all that stuff out of the way and make all your mistakes Without actually having to lose any money in the process Now the last one number three is investing purely for profit This is the one where you're going to try to invest to get the maximum amount of return The most gains that you can possible. It may not be the funnest way possible It may not be the easiest way possible. Although I think this is also pretty easy if you ask me But it is going to get you the best returns and again, I'm not talking real estate Um, you know starting your own business investing in yourself or anything like that. That's a completely different subject I'm sticking purely to stocks here and in my opinion the very best one is going to be a low-cost diversified index fund and then on top of that you want to hold long term At least until you plan on retiring now I've talked about this on other videos But I'll quickly go over it real quick because there's so many channels on youtube that try to Get you to do penny stocks or like all these horrible investments That are going to end up losing you a ton of money And so I'm just going to quickly go over this one. Have you heard of a guy named Warren Buffett? Okay, so Warren Buffett is probably the most successful trader the most successful investor of all time And what he recommends you do is to invest in low-cost index funds He stated this publicly many times He's put this in his letters to shareholders of his company And he even put his money where his mouth was in 2008 when he made a multi-million dollar bet To any hedge fund manager out there that they couldn't beat a simple s&p 500 index fund over a 10-year period A bunch of hedge fund managers took him up on the bet and guess what? Of course he won And let's keep in mind these hedge fund managers are some of the smartest hardest working They have the best connections. They have the best technology and gear They have access to the smartest people and and best consultants and all kinds of different advantages That they have over the average person like that you're probably are and I am like everybody watching this is probably just The typical person they have so many advantages over us and even they couldn't beat the s&p 500 index fund And that's a pretty basic index fund. That's not even one of the best ones And if that's not enough tons of different studies have shown that index funds will beat Either hedge fund managers or normal investors anywhere from 90% of the time on the low end to 95% of the time for hedge fund managers and around 98 to 99% of the time if you're comparing them to just your average joe investor And this is because it's so hard to beat the market and what index funds basically are Is just the market as a whole if you look back over the decades The s&p 500 and the market as a whole has gone up around 10 percent every single year Since 1926 and so if you just simply diversify your money throughout the entire stock market like index funds do Chances are you're going to get a very nice return usually somewhere between 7 and 12 percent depending on if you count inflation and depending on several other factors So it's pretty clear who the winner is here. It's definitely index funds And there's been a couple that I've heard about that come close to the success that index funds have For instance, the blog seeking alpha basically published a little study that they did where they compared index funds to dividend aristocrat funds Which is basically where they took a bunch of really good dividend funds and they compared them And how much you make over the years overall versus index funds and the dividend aristocrats did beat them out by a very tiny margin But a lot of the things that they did in the study were a little bit suspect in my opinion First of all, they compared the dividend aristocrats to index funds that were mixed with bonds So it was a 60 40 split you don't get as good of return on bonds Of course as you do on index funds And so that's not really fair to compare them and then they didn't do the same thing with the dividends And then another thing is the dividend aristocrats were selected based on past performance And it's been shown over and over again that past performance has nothing to do with future performance In fact, there's some evidence that the better a stock does in the past the worse it will do in the future But overall index funds are one of the best if not the best when it comes to profit And you can't beat how unbelievably easy they are Now the reason they didn't go in category number one is because generally you are going to need at least $500 to start investing in an index fund Whereas with a lot of those apps you basically need almost no money to start investing But as long as you have $500 it's not going to take you more than 15-20 minutes to set up an index fund on fidelity or vanguard Or any number of other platforms In my recommendation for the best platforms the two that I personally use quite a bit are going to be vanguard and fidelity Vanguard because they were the og's they originally invented Index funds and then fidelity because I just really think that they're great with user experience And they just make everything stupidly easy now the one knock on index funds And this is a legitimate concern is that they're honestly not very fun And I think this is one of the main reasons that a lot of people stay away from them And the reason that they haven't just totally dominated the market is because they're honestly pretty boring You're not going to get that rush of adrenaline when you're tesla stock quadruples in price There's really not any speculating or research or anything like that that you have to do It's very passive. You just hold long term and you have to have extremely good self control as well But for me personally it saves so much time all that time that you would need to learn how to invest Learn how to look up all the different indicators of what makes a good stock versus a bad stock Whether it's overvalued or undervalued and then also stay on top of the news 24 7 All of that is just not for me. I don't want to stare at the ceiling at night wondering if my stock's going up or down the next morning I just don't like that at all for me personally I like to be able to automate everything put my money in an index fund and then just watch it grow every single month And then take all that extra time that i'm saving Not looking up things not spending all that time becoming an expert investor And then just go have fun in real life instead So for me index fund is the most fun type of investing because I don't have to pay attention to it Now I can definitely see why someone would want to go into the dividend investing category because it's pretty close to index fund investing It's not quite there. I think index fund investing still beats it out overall You're going to be spending a lot more time doing research and you probably aren't going to get as good of a return But it is going to help you kind of keep your thumb on the pulse of what is happening in the market And if you're planning on going into the finance industry, for instance Or maybe you're planning on opening a business being an entrepreneur or something like that It can be very useful for you to keep your thumb on the pulse of that because It might open doors for you that you otherwise didn't even know would exist But for me, it's just not worth it. There's no late nights staying up Doing research waking up early in the morning to read the news to see if Some stock is going up or anything like that coming home to find that beyond meat stock dropped 22% in a single day I just automatically invest a certain percentage of my income every single month And then I look at it once a month just to see how it's doing But overall and this is the secret to choosing the best kind of investment Overall the best kind of investment is the one that gets you to start investing Only about 50% of grown-ups own stocks and this should really be much higher because investing is the secret to retiring To building wealth to just being able to live a life where you're free Where you don't have to worry about money all the time So really whichever one gets you excited enough to save enough money to invest is the one that you should go for Because the most important thing is just getting the ball rolling and starting earlier than later is much better And I'm going to show you exactly why because of the power of compound interest investing $250 a month until you're 70 starting at the age of 25 versus starting at the age of 35 Means there's going to be over a 450 thousand dollar difference, which is over twice as much So you know what to do get started right now Pick one of these methods and start investing But before you do that make sure to check out my videos right here. I made them just for you Go ahead smash the like button hit the subscribe button ring little notification bell and then comment down below any ideas You have on the video or any feedback. Thank you so much for watching and bye for now