HOW TO DOUBLE YOUR MONEY 💰 #Best Education Page #Online Earning

- How's is goin' today, guys?

So today we're going to be talking about

how to double your money.

Now I'm gonna be honest with you guys.

For those of your who think this title sounds familiar,

It's because I already did this video.

But this was when I was

kind of experimenting with my channel,

and as a creator it's tough

because you're trying to deliver the information

in the best way possible.

So I had made the mistake of just doing a vlog type video

where I kind of recited what I was going to say

and just recorded the information that way

because in my mind I was like well, this must be better

because it's less filler material

and more of the actual facts.

But at that point it's a very b
oring and robotic video.

And despite the fact that it was getting a lot of views,

I just was bothered by it because I'm like you know what?

This isn't my style.

This isn't why I started YouTube.

I didn't start a YouTube channel to read off a script.

And I really appreciate you guys

for calling me out on that,

because you guys did not hesitate to tell me

that I was really, really screwin' up.

And I will never go back to doing that again,

so don't worry about that.

But because I kind of wanted to start over here,

I decided to just redo this video.

So for those of you who have seen it already,

I apologize about the repetition,

but just for my own reasons I wanted to redo it

because I just wasn't happy with that video.

And after watching it a couple times I'm like,

you know what?

This is not interesting.

This is just boring.

At that point you might as well just read an article.

What's the point of watching a video

if someone's just gonna basically read information to you?

So time for a redo of this video.

I appreciate those of you

who are watching it for a second time.

Maybe you'll grab something else out of it.

But how to double your money.

There's basically four ways

people do this through investing.

And there may be some variations of these ways

that may not fall under these exact categories,

but they're close enough,

so I'm breaking it down into four different common ways

people do this.

I'm gonna tell you basically how much time it takes

relatively to do these things and these are all basically

it takes a different amount of time

based on how much risk you're comfortable with.

So number one is compound interest plus time.

So basically this is when you invest

in long term investments that compound over time.

So this is when your interest earns you more interest.

I know I've done a lot of videos

about compound interest lately.

So you probably have heard this

if you've been watching videos on my channel.

But basically I'm just gonna go through one quick example

which is blue chip dividend stocks.

For those of you who don't know,

blue chip stocks are basically the stocks

of the well established companies.

Basically the titans of the industry.

They're usually the top three of their industries.

So they are companies that have been around

for a very long time

and they are their leaders of their actual industries.

So as a result these stocks are relatively low risk,

so they don't have much movement.

So basically what they do is they pay dividends

as a way to reward shareholders and keep them around.

So this is a regular quarterly cash payment

that they pay out.

And one way to take advantage of compound interest

is to take those dividends and reinvest it

back in stock of that company.

So that way those dividends that you earned

will earn you more dividends in the future.

Also known as interest on interest, basically.

You're earning dividends from dividends.

So this is one of the very common ways people take advantage

of compound interest.

So basically a common way or a common investing strategy

is to invest in blue chip stocks

as well as investment grade bonds.

Basically blue chip stocks are a little riskier than bonds

so you're kind of, you know, diversifying a little bit

to kind of mitigate some of that risk out of there.

But you could absolutely,

if you're a young person especially,

go all in on blue chip stocks.

That's not a bad strategy either.

But let's talk about this 50/50 strategy.

It's a very common strategy people recommend.

So basically on the last 100 years on average

blue chip stocks have paid out 10%

And on average investment grade bonds have paid out 6%.

Now guys remember this is based on 100 years

of smoothing of that data.

So I'm not telling you that you're gonna see

a 10% return over the next 10 years and a 6% return

over the next 10 years,

this is based on 100 years of data.

So there were a lot of times when we were seeing

more than 10% or a lot less than 10%.

Or more than six or a lot less than six.

But understand that if you're investing very long term

that might be a figure you can rely on.

But in the short term, even 10 or 20 years,

this figure may be out of whack.

But I'm going on 100 years of data.

So I wanted to explain that to you guys.

But based on this if you have a 50/50 split

of blue chip stocks and investment grade bonds

you would have roughly an 8% return on your investment.

And if you have an 8% return

you would double your money every nine years.

So if you follow this strategy of investing in basically

blue chip stocks and investment grade bonds

you could foreseeably double your money every nine years

if that trend continues and we're seeing

roughly those returns over the next nine years.

But this is looking at basically a larger amount of time.

So we would be more likely to see you doubling your money

every nine years if you look at it

over many, many decades, basically.

So number two is the Warren Buffett investing strategy.

This is a great strategy as well, guys.

This is basically following the concept of being greedy

when others are fearful.

Anyone who's heard of Warren Buffett

has definitely heard of that quote of his before.

Basically be fearful when others are greedy.

Be greedy when others are fearful.

Essentially you don't want to follow the market.

You want to do the exact opposite

of what everyone else is doing.

So basically you want to invest

at the maximum point of pessimism

or basically invest during a bear market

when prices are scraping the bottom

and everyone's selling and everyone is panicking,

you want to be greedy

when everyone else is being fearful and selling.

So while the price of a stock falls,

the value of the actual stock does not.

Basically, price is a factor

of the supply and demand of that stock

and when we're in a bear market,

everyone and their brother is selling those stocks

and that pushes pretty much all of the stocks down in value.

While the actual value of those stocks

or the value that piece of ownership of that company

does not change.

So when you recognize that we're in a time

when the actual value is out of whack with the price,

that's a great time to buy

and there are fantastic opportunities

to double your money when stocks go on sale

in a bear market.

So bear markets provide easy opportunities

for investors to double their money.

And I just want to provide you guys

with one example here, okay?

Now this is basically if you timed the market perfectly

which is absolutely impossible to do.

So I'm not telling you guys that you would have the ability

to know exactly when the market was gonna bottom out,

but if you bought at a time when the market was low,

we're looking at the S&P 500 Index.

It bottomed out on March ninth of 2009 closing at 676.53,

and basically a little over two years later,

basically two years and one month later,

the S&P 500 Index was at 1363.61,

or a 102% return on your money in two years.

So somebody who invested in a bear market

at the maximum point of pessimism

when everyone was selling, when everyone was panicking.

If you buy at that point you could double your money

in a much shorter amount of time than you would

basically buying during, basically just buying

across different time periods.

The best way to do strategy number one

is basically setting aside a certain amount of money

and buying each month, that way you're taking advantage

of dollar cost averaging.

That way you're basically lowering the average

price paid per share because you're buying it high,

buying it in the middle and buying it low.

I wouldn't recommend a lump sum investment

because you might actually buy high

and that could lower your returns.

But anyway I just wanted to throw that in there.

The only thing I'm going to say about that though

is that you don't want to try to time the market

and wait for a bear market, because you could miss

many, many years of good returns from a bull market.

So honestly your best strategy is to just consistently

invest a little bit of money over time.

But I just wanted to point that that out

as a great way you can double your money

is by investing heavily in stocks during a bear market.

The other thing you can do

if you're somebody who's investing in that 50/50 strategy

if you feel that stocks are significantly undervalued,

you could basically balance out your portfolio

and go 75% stocks, 25% bonds.

So sell some of your bonds that have held their value

and buy some of the stocks that are under-valued

at that point, but take advantage

when those stocks return to normal values.

So number three is gambling with speculative bets.

This is the way a lot of people try to double their money.

Some people are successful at it, a lot of people are not.

Many who are looking to double their money fast

are actually speculators and not investors.

And what I mean by that is that

you are making high risk bets with high returns possible.

As a speculator

you're not investing on the value of a company.

You're basically investing on a hunch

or you feel that this will go up in value significantly

in the future.

The best way to explain this is

you're investing based on what you think will happen,

not what is happening right now.

So that is why when you look at

something like the The Intelligent Investor, he totally,

Benjamin Graham totally separates

speculators from investors,

because they're totally different breeds of people.

So most of us, including myself, are investors,

but some people have that desire to gamble in them

and they want those high-risk bets

where they're gonna hopefully see high returns

so they make speculative bets.

Here's a couple examples of these.

This would be people who speculate by buying penny stocks.

People who are day trading.

Now notice they're not day investing,

they're day trading.

So they're basically trading those price swings

of very volatile penny stocks in most cases.

Leveraged ETFs, for example they may have a leveraged ETF

where if the S&P 500 Index goes up 10%,

this ETF will go up 50%

So in a five to one ratio.

There's also inverse ETFs where basically

they'll do the opposite

of the underlying index it's tracking.

So if the S&P 500 Index went down 10%

this leveraged inverse ETF would go up 50%.

So while there's double upside potential,

or even more in some cases,

there's also double downside potential at that point.

Another example of this is very similar, margin trading.

This is when you're buying stocks on margin.

So your broker loans you money

and you pay interest on that money.

And you basically are buying stocks

with borrowed money at that point.

And there's also betting on earning.

So if you believe that a company's going to

beat earnings expectations, you pile in on that stock

before they release earnings

and hopefully you're right about that.

It's a speculation.

Hopefully you're right about that

and you make some money doing that.

A perfect example of this guys,

if you watch Jeremy from Financial Education,

he talks about how this is something he used to do,

betting on earnings reports and he lost his shirt doing it.

So a lot of people learn a valuable lesson

when they're making speculative bets.

The biggest problem I have with this is,

are you gonna be right every time?

So maybe you're right once or twice.

Maybe you pick a couple good penny stocks.

Maybe you bet on earnings and you're right a couple times.

Are you gonna be right every single time?

Because that's not a strategy you can rely on

unless you're gonna be right most of the time.

And that's usually where people run into trouble.

Or maybe these strategies work in a bull market

that we're seeing right now,

but once we're in a bear market,

a lot of these strategies are not going to work.

What it comes down to is

speculation is great when you are right

but when you are wrong you are usually wrong big.

You can lose the money just as fast as you make it

with speculative bets.

So that's basically one way

that people double their money very quickly.

You could see someone you know buy penny stocks

and see it triple in value in one day.

So maybe they triple their money in the course of one day.

But you could also see that person invest all of their money

in a penny stock, and the next thing you know

the company goes bankrupt.

So that's one way people do it.

I don't recommend it.

And I don't do it, but I just wanted to talk about it here

as a way people double their money with investing.

Number four the final way is playing it safe.

This is the safest possible way to double your money and

this is investing solely in high quality bonds.

Now I don't necessarily recommend this

because a lot of us, especially young people,

we have the time and we also have the stomach

to handle some volatility.

So you see better returns when investing in stocks

in general over the long term,

but if you're looking for a super conservative investment

and you want to investment in the highest quality of bonds

then you would probably look at US Treasury bonds

because these are as safe as they come.

So basically if you invest in

a Series double E US Treasury bond,

it will double in value after 20 years.

So every 20 years your investments

in series double E bonds would double in value.

That's a very long time

and frankly I think most of us can do better.

But just another way people frequently double their money

is through investing in bonds.

Anyways guys, that's pretty much all I got for this video.

This is four common ways

people double their money through investing.

If you guys enjoyed this video please drop a like.

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and as always I thank you guys

for taking the time to watch this video.

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