Investing Journey Overview

Early Investment Experience

• Started investing in 1985
• Experienced significant growth until Black Monday (1987)
  • Major drop in stock market leading to a decline that affected millions
• Market recovered leading to notable events:
  • NASDAQ index drop of nearly 10%
  • Global economy contraction of 3% (worst since Great Depression)
  • Following recovery: Market soared 27% from its low

Personal Investment Performance

• Personal story: invested from age 18
• Average return over the investment period: 11.23% per year
• Example: Investing $250/month would yield $1,845,121.8 (over 6,000% return)
• Actual investment was significantly more than $250/month

Importance of Investing

• Emphasizes the power of investing over time
• Encourages learning how to invest effectively

How to Invest in Stocks Using an App

Preparation

• Ensure an emergency fund (3-5 months of living expenses)

Setting Up an Investment Account

• Choose a tax-advantaged account (e.g., Stocks and Shares ISAs in the UK, Roth IRA in the US)
  • UK offers better annual limits (£20,000) compared to the US ($6,500)
• Recommended app: Trading 212

Funding the Account

• Easy deposit options via apps (e.g., instant transfer, debit card)
• Example deposit: £400

Getting Free Stocks

• Promo code "Tilbury" for free stock worth up to £100 with Trading 212
• Further bonuses for inviting friends

Investment Strategy

Long-term Investment Approach

• Recognize that stock prices fluctuate
• Prefer investing in index funds (e.g., S&P 500)
  • Diversified approach reduces risk
  • Index funds represent performance of multiple companies

Practical Steps for Automated Investing

• Example: Invest £5 daily in S&P 500
• Consider accumulation funds for reinvesting dividends
• Use app features to set up automated contributions

Projecting Investment Returns

• Historical averages can guide expectations
• Example: Investing £250/month could lead to significant returns over decades
• Inflation mitigated by consistent investments

Picking Individual Stocks

Analysis Approaches

• Two main analyses:
  • Technical analysis: Focus on price patterns
  • Fundamental analysis: Review company’s financials and performance
• Long-term investment horizon (2-5 years recommended)

Finding and Buying Stocks

• Use app features to search for stocks (e.g., Tesla)
• Understand order types:
  • Market order: Buy at current price
  • Limit order: Buy only at a specified lower price
• Example transaction: Purchase of £400 in Tesla

Conclusion

• Investing is not without risks, but historical data shows resilience
• Importance of starting young and maintaining a diversified portfolio
• Encouragement to subscribe for further investment advice and strategies