My Plan to Build a Million Dollar Stock Portfolio from $0 | Justin Scott Ep 4

► M1 Finance (broker used in video):https://m1.finance/pxibCcQhGFII
► View My Main Portfolio: https://m1.finance/K74nPo2tz
► View My Roth IRA: https://m1.finance/KvNkUenGl

1:30 My investment strategy for building my million-dollar portfolio. I focus on buying smaller companies in the 10 billion to 50 billion market capitalization range.
2:30 I mention how I am not ignoring Dividend stocks and how as my account value grows, I will slowly increase the percentage of money I put into dividend stocks.
3:00 I show my funding history so far: $6000 in 2018, $11,507 in 2019, and $2,895 so far in 2020. My goal is to put in around $1500 a month or $18,000 a year.
3:20 I show how it is possible for me to reach the $1 million mark in this portfolio by averaging a 27% annualized return. Obviously, I cannot control whether stocks go up or down so if we do go into a recession in the next 10 years, I will have to reevaluate my strategy. But so far, the stock market is strong, so I am not worried.
3:55 I show that if I did not invest at all and tried to save my way to a million dollars. The result is that I would only save $205,000.
4:45 Try not to get hung up on finding the best investment strategy. Instead, start investing today and get the ball rolling. You will learn as you go and figure out which investment strategy is best for you.
5:08 I introduce the CNBC article about how only 37% of young people under the age of 35 are invested in stocks. Compared to 61% of people over the age of 35 who did own stocks.
5:54 I show the annualized returns from my Roth IRA which I’ve had since I was 10 years old and how I have been able to beat the market over the last 10 years. I have gotten a 23% annualized return over the past 10 years and 30% annualized returns over the last 5 years.
7:45 I discuss the first excuse young people have for not investing the stock market. “There are too many stocks out there and so many ways to invest so it is just too overwhelming.”
9:45 I discuss the second excuse young people have for not investing the stock market. “I do not want to buy into the market at the peak, right before it crashes.” My response: You can’t time the market and you are losing money everyday you are not invested in the stock market. I made $5,525 over the past year in stock gains, so I would have lost that money if I chose not to invest this past year.
10:55 I discuss the third excuse young people have for not investing the stock market. “I know I should invest, but stocks don’t feel comfortable.” My response: The less you check your investments and worry about the ups and downs of the stocks market, the better you will do. Stocks are meant to be held over the long-term so put your money in and leave it alone.
12:00 My problem with Robinhood is that its too easy to check your stocks compulsively and that only makes you more likely to worry and sell when stocks drop.
12:55 You don’t want to constantly be buying and selling your stocks. Realize you don’t control the stock market. The only things you do control are the stocks you buy and how much money you put in to each one. Put your money into stocks and leave it alone, let the stocks do the work for you.
13:15 I discuss the fourth excuse young people have for not investing the stock market. “Due to my lack of knowledge and experience in the stock market, I don’t want to lose money.” My response: Every day you do not invest you are losing money to inflation. Inflation is around 2-3% a year which means that you are losing buying power everyday that you are not invested. If you don’t want to invest, at least put your money in a high yield savings account that matches or gets close to matching inflation.
14:25 I discuss the fifth excuse young people have for not investing the stock market. “I’m worried that I’ll pay a bunch of money in fees.” My response: Everything now is basically free thanks to online trading apps such as Robinhood and M1 finance. You don’t pay any commissions to buy and sell investments and there are plenty of ETFs and Mutual Funds that have under a 0.10% annual expense fee which is basically nothing.
16:55 Why I’m doing this YouTube channel, to educate and motivate you to start investing today. Investing is the really the only way that the person of average means can become wealthy in their lifetime.
18:40 My top holdings in my high growth aggressive stock portfolio. I show that I own both small companies and large companies in this portfolio.
19:12 I explain why I am taking this risk of investing in high growth stocks.
20:15 I discuss a favorite Warren Buffett quote of mine about being content with what you have. If you try to get rich quick, you are likely to make unwise decisions and it will probably not end well for you. Investing is a slow game that takes years to see meaningful results. So be PATIENT and keep putting money into your investments.

Видео My Plan to Build a Million Dollar Stock Portfolio from $0 | Justin Scott Ep 4 канала Justin Scott