Warren Buffett: Should you buy Index Funds at All-Time Highs?

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2 жыл бұрын

When Warren Buffett speaks, I listen. But there's one thing he's never explicitly covered. Whether passive investors should pause their ETF and index fund purchases in wildly overvalued markets. Over the past year, we've seen the S&P 500 continue to push to new all-time highs. But does this mean passive investors should wait to see if the market cools off?
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DISCLAIMER:
Neither New Money or Brandon van der Kolk are financial advisers. The information provided in this video is for general information only and should not be taken as professional advice. There are risks involved with stock market investing and consumers should not act upon the content or information found here without first seeking advice from an accountant, financial planner, lawyer or other professional. Consumers should always research companies individually and define a strategy before making decisions. Brandon van der Kolk and New Money are not liable for any loss incurred, arising from the use of, or reliance on, the information provided by this video.

Пікірлер: 543

@Otis-the-III 17 күн бұрын

Time in the market beats timing the market

@ShelleyfromCali 17 күн бұрын

Yes, Kenneth Fisher quote. However, the applicability of this advice depends on your age, timeline horizon, and market knowledge.

@BudgetBirdeye 17 күн бұрын

Thank you, let’s not over complicate things. Invest as early and as often for as long as you can in some good index funds and get rich AF

@Mhousley 17 күн бұрын

I wish they taught investing at school level. There is so much advantage to doing this! My biggest regret is that I started so late.

@henrymitchell9717 17 күн бұрын

I agree with the lady above if you’re 60 expecting to retire soon then it’s better not to, but if you’re in your early 20s and saving for 40s then you have the time to play long game

@So.ladylike 17 күн бұрын

I’m in my 70s and recently learned about investing. I feel so behind but I guess better late than never.

@ludovicomassa4506 2 жыл бұрын

there are 2 amazing quotes from WB! 1. During the latest Yahoo Finance conference he said: "I've never suggested buying stocks from my companies but always indexes" 2. "Time in the market rather than timing the market" NO need to add more!

@AustinWalter-pq1ud 2 ай бұрын

My portfolio doesn’t just cater to dividend stocks. I hold $VFIAX (S&P 500 index fund) in my Roth IRA and $VTI (Total Stock Market ETF) in my taxable brokerage account. Two of my largest holdings. The individual dividend stock positions all complement the index holdings.

@FrankPatrick-no8zo 2 ай бұрын

If you lack market knowledge, your best bet is to seek advice or support from a consultant or investing coach. Contacting a consultant may sound simple, but it's how I've managed to stay afloat in the market and increase my portfolio to roughly 60% early this year. It is, in my opinion, the best way to get started in the industry right now.

@FrankPatrick-no8zo 2 ай бұрын

There are many independent advisors to choose from. But I work with Monica Shawn Marti and we've been working together for almost four years and she's fantastic. You could pursue her if she meets your requirements. I agree with her.

@ChrisKAloha Ай бұрын

why not have VFIAX in both? And why not VTSAX in your IRA? Curious because I just bought VFIAX for my IRA and voo for my taxable account. I didnt know about VFIAX when I bought the voo shares.

@juliansmith4153 2 жыл бұрын

Always invest. Today's all-time high is the future's fire sale price

@BigTex2 2 жыл бұрын

Very true!

@ohno1954 2 жыл бұрын

Let's hope you haven't invested into the NIKKEI before 1990s

@johngill2853 2 жыл бұрын

@@ohno1954 but very few invested all at the top. If you buy a little bit each paycheck you would not have bought it all at the top. That's also where diversification comes in and you should have international stocks

@danielb8982 3 ай бұрын

Yeah this aged like milk

@reallynoname Ай бұрын

@@danielb8982Did it? If you bought a world index in September ‘21 you would be up over 20% today.

@1Akanan1 2 жыл бұрын

To anyone who made ''only'' 12% year return while the market went 15% up on a given year. You've made 12% more than the majority of people who spend every paycheck they earn.

@ashleyn1979 2 жыл бұрын

I put it into VDHG a few month ago. Thus far only a 0.89% increase :(

@shauntay0248 2 жыл бұрын

@@ashleyn1979 My investment in the QQQ currently has 1.5% increase. But my other investments in bluechips I've made along the way has caused my portfolio to be overall negative. Tesla, my largest investment after QQQ, has thankfully mitigated a lot of the losses. So I think you're actually doing fine. In the short term, we may experience a deeper correction and experience further losses but if you have a long time horizon, keep going at it and you should be fine.

@ashleyn1979 2 жыл бұрын

@@shauntay0248 cool. Yes as long as the investment gradually increases over time.

@thomas.02 2 жыл бұрын

lol i'll keep this in mind as my portfolio is in stagnation these months

@linkbelt111 2 жыл бұрын

Very, very few are averaging 15%, even in this bear market, I have a few positions doing that well, but my “average” is a few points below that!

@dasfahrer8187 2 жыл бұрын

Those in their retirement years need to think about this carefully. Someone in their 20's should be able to spend several years or decades weathering a bear market and recovery, whereas someone in their 60's and older may not be able to.

@NewMoneyYouTube 2 жыл бұрын

Very good point Das. That's actually one of the reasons I really like Six Park. They are passive investors through and through, but help you balance your portfolio based on your investing time horizon!

@Tomas-tx6lq 2 жыл бұрын

Definitely. One way is increasing the amount of bonds in the portfolio. Maybe a 50/50 portfolio is appropriate when in age 50+.

@darn721 2 жыл бұрын

Exactly this, I'm 28 and started investing recently. All the bubble talk doesn't scare me because I know that I'm leaving my money in the QQQ, SPY and DIA etc for 20 - 25 years during which the market will continue to grow. But I can totally understand how continuing to put money into the market nearer to your retirement years could be scary.

@jaquevius 2 жыл бұрын

@@NewMoneyKZfaq What's funny is that as a long term passive investor, I am still somewhat drawn into the "active" component. I already maximize our Roth 401k's, and in addition do backdoor Roth IRA's. My accountant tells me to invest all 14K (7K each, since I'm 51) one day, and convert to roth the very next day so I don't create any taxable income (my wife has a prior IRA Rollover and it gets complicated with prorata etc) so I find I'm in a weird way looking for a low in the S&P to pull the trigger. I've always used Vanguard with a cost ratio of 0.04 and been a huge believer in passive investing in the long term, but I have no choice but to "try to time the market" in this one scenario lol.

@luisoncpp 2 жыл бұрын

@@Tomas-tx6lq the original study about the 4% rule found out that the less risky portfolio should have 70%-80% of stocks and 25% or less of bonds, and the historical data taken in that study considered bonds that were yielding much more than current bonds; so the less risky asset distribution probably would have less bonds now. Just to clarify: I'm talking about the risk depleting all the savings during retirement, not the volatility.

@BTal-kp1qd 2 жыл бұрын

All time high is subjective to the time period we're operating in. People would have been saying the same thing 50 years ago because the market was at whatever arbitrary value it was at back then but it's always on a long term upward trend. Provided your asset allocation is appropriate for your situation, you should avoid altering your strategy. Today's all time high is next decade's value purchase!

@jzen1455 2 ай бұрын

And look where we're at now in May 2024, the Dow Jones hit 40,000 for the first time or 10,000 points higher than when this video came out 3 years ago!

@jerrycallo Ай бұрын

@@jzen1455 I remember when people said the Dow would never hit 1,000 (like it was the sound barrier or something). 3 years later it was 2,500

@tonyoliver2330 2 жыл бұрын

When your young, aim for growth and capital multiplication. When you’re old, preserve it and spend as you see fit

@ATaylor369 2 жыл бұрын

Stay the course! Yes the markets will crash and a few will even guess the timing right and be viewed as investing Gods and everyone will completely ignore the 37 times they got it wrong.

@Brandonchongmj 2 жыл бұрын

Thanks for this informative video! it's easy to become afraid to invest when market is at an all time high because of the inevitable crash. But like you said, the all time high now is nothing compared to 20-30 years from now. Your video is a great reminder to continue to DCA and stay the course. Thanks!

@steffverdonck4420 2 жыл бұрын

Anyone has a though about the following: dividend tax rates differ from country to country - in my country it is 35%. additionally you need to pay brokerage costs for any additional transaction and some country specific taxes for every purchase or sale totaling around 1% per transaction. Does it still make sense to purchase an S&P500 index and reinvest the dividends?

@Tomas-tx6lq 2 жыл бұрын

Great video! Where can I find this paper from Warren Buffet? Would be great to read 👍

@faroukelgohary7825 Ай бұрын

Coming from 2024 where the current all-time high for VOO is at $500 and at the time of this video it was $300. Just shows how much time in the market is better than timing the market

@ovais217 2 жыл бұрын

Brendan thank you so much for making this video !! This question was actually bothering me a lot, and we are new passive investors ..

@budj13 2 жыл бұрын

Thanks for the effort to compile these great bits of wisdom and summarizing the goal of passive investing and dollar cost averaging.

@OA-hm9xn 2 жыл бұрын

Really good video. I think it would be really interesting if you were to show example calculations of DCA returns at different frequencies and over different time periods.

@Pegaroo_ 2 жыл бұрын

Everyone always shows that clip 2:42 where he says if you'd invested $10,000 in 1942 but in 1942 that was a lot more money than it is today, the average wage in 1942 was $1,885

@codymiller1994 2 жыл бұрын

True, but the growth percentage is still the same regardless of the dollar amount. If $10,000 would’ve become $51 million, $1,000 would’ve become $5.1 million. Even $1 would’ve become $5,100.

@omkarbhagwat895 2 жыл бұрын

Inflation should be considered

@Pontius-de-Cruce 2 ай бұрын

Hamburger used to cost

@jamisojo 2 ай бұрын

@@omkarbhagwat895 considered how? We are still trying to achieve the best return possible. That is independent of inflation because everything is subject to inflation.

@mkan38 2 ай бұрын

If you invested anything in 1942, you are 99 percent likely to be dead now.

@herbshirt6073 2 жыл бұрын

Still learning a much from you mate. You’re doing a great job.

@hookdup1927 2 жыл бұрын

so how spread out over time and how much should these incremental investments in index funds be?

@patrickmorris6628 2 жыл бұрын

Early saving and investing money creates compounds growth, it's a beautiful thing.But it takes focus and discipline. You need to be focused enough to commit to a plan and a process.I’m a dividend investor, my wife and I have invested in the s&p500, both through my TSP with the government and through fidelity in her 401-k. Cashed out 370k from the S&P and invested with a full service broker.. Until about 3years ago we were 100% in the s&p after over 30 years. I’m retiring at the end of the month at 59, while my wife will retire next year at 54. We currently have 5.7 million in out tex deferred savings.

@fredatlas4396 Жыл бұрын

@@patrickmorris6628 SCAM ALERT

@fredatlas4396 Жыл бұрын

SCAM ALERT

@eylon1967 10 ай бұрын

Scam

@happycamper4918 2 жыл бұрын

An all time high means it's growing in value over the long term which is the objective. Also can't ignore record low 0.1% cash rates which are increasing equity valuations above historical standards when cash rates were 18% 30 years ago

@bunmiade9767 2 жыл бұрын

As a beginner should I buy stock directly or use a stock broker?

@GNotGenius 2 жыл бұрын

It's always funny watching people say DCA and then also say "time in the market beats timing the market" because DCA (keeping money on the sidelines) is inherently timing the market.

@matthart5817 2 жыл бұрын

That's a good point - though several of the bits of advice from Buffett and other sources referenced here might say "put in a little bit every month" or something not necessarily to DCA, but to be on a similar schedule to paychecks/cash inflows. So in this case it wouldn't be keeping money on the sidelines, but rather investing whatever portion of your income you feel can afford to at all times, repeating the process as you accrue more $. Your general point about the dissonance between those two statements is an interesting one though.

@ben3989 2 жыл бұрын

For most of us each months contribution is literally new money earned by earning a paycheck.

@KarlDag 2 жыл бұрын

For most people DCA doesn't mean keeping money on the sidelines, it means invest whenever you can - ie every paycheck

@TheBlaQmind 2 жыл бұрын

I mean they would just have to take a calculator and put in the numbers, even if a crash is right in front of you, time in the market would still be only marginally worse, in any other scenario... Well I doubt we need to even talk about those

@Brandonchongmj 2 жыл бұрын

The best strategy would be to do a lump sum investment (i.e., whatever you have saved up till this point) if you are investing for the first time. Then you can follow up with DCA when you receive your monthly income

@johnben9 8 ай бұрын

I have 35% of my capital investments in an IRA, 25% in index funds, and the balance spread across other investment accts totalling over $250k. I took a big hit in Q2, 2023. Right now i am just looking for ways to recover.

@carolpaige2 8 ай бұрын

Although I've made a lot of financial mistakes in the past, I don't regret them since I've learned from them. The most significant one was entering the market without experienced professional counsel.

@KevinClarke9 8 ай бұрын

Think the best idea is to speak with a financial advsor. I also had a fair share of ups and downs when i first started investing, until I consulted a financial advsor in 2021, since then I've made over $670k in profits

@Johnlarry12 8 ай бұрын

Impressive! Please who assists you with your investment and if you don't mind, how do I get in touch with them?

@KevinClarke9 8 ай бұрын

‘Christine Jane Mclean is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.

@Johnlarry12 8 ай бұрын

I just looked up her name and her website popped up immediately, interesting stuff so far, about to schedule a session with her.

@Davidstowe872 16 күн бұрын

If index funds started to distort the market, there would be opportunities for stock pickers to out perform the index so the market would self correct .I'm curious, which st0cks could potentially become the next META in terms of growth. I've allocated $350k for investment, looking for companies to make additions to boost performance

@Rachadrian 16 күн бұрын

Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.

@Dantursi1 16 күн бұрын

A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K

@Quason788 16 күн бұрын

This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

@Dantursi1 16 күн бұрын

Annette Christine Conte is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.

@Dantursi1 2 күн бұрын

Annette Christine Conte is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.

@ippolito3166 2 жыл бұрын

10:09 nailed it 👍

@janjan1423 2 жыл бұрын

Most times, splitting your one time investment into many small investments will loose you money, because most of your money is sitting idle. Time in the market beats market timing. But, yeah, if you are afraid to invest a large sum right before a crash, then go for it. Also, if you take the MSCI World chart and color in every all time high, you will have a very colorful chart. A large percentage of the historical MSCI World chart consists of all time highs. One after the other.

@BIG2hats 2 жыл бұрын

Yes but having cash available is really important, it means when everyone else is scared and selling because they put their entire life savings into the market just before a crash, you'll be able to comfortably invest to take advantage of the lower price. A mix of both is good

@MikelSyn 2 жыл бұрын

@@BIG2hats to the context of passive investing, actually, no. There have been papers comparing the difference in returns between DCA and LSI, and found that 71% of the time, LSI delivered better returns. HOWEVER, you are right that the difference is not simply financial. LSI brings in investor's psychology, and you might be stressed or badly regretting if you bought at the wrong time. That stress may not be worth the marginally better returns.

@fredatlas4396 Жыл бұрын

@@MikelSyn some people don't have lump sums of cash to invest all in one go, so most people have to pound cost average every month or put their money in when they have some available

@MikelSyn Жыл бұрын

@@fredatlas4396 the papers were specifically in context of having a certain sum of money, which you either immediately invest entirely, or DCA/PCA over the next 12 months. If you're a salaryman, investing a portion of your salary, then yes, DCA is obviously better than saving it up till the end of the year to lump sum. The paper is merely stating that the time in market effect is so powerful that delaying investment by just 12 months results in less money. This does apply to annual bonuses that you may want to invest. It's better to invest all that bonus immediately when you get it than to spread it out over 12 months.

@nikosmihos 2 жыл бұрын

Philip Fisher (Common stocks and uncommon profits) also recommends to avoid invest the whole amount in once but scatter investments in a 3 years period instead. Additionally, I agree DCA shall take place even in high valuations as you never know what's next. An idea that can boost performance above average is to increase investement amounts (as possible) when market is at low P/Es.

@adinawong3411 2 жыл бұрын

Love this!

@panathasg13 2 жыл бұрын

How often should we be buying though Every month? Quarter or year?

@annaelmo9357 2 жыл бұрын

Considering the cost of brokerage associated with investing in ETF’s is there a suggested minimum amount to invest per dollar cost averaging round? (As opposed to manager finds with dollar cost averting minimums of as little as Au$100/month with no associated brokerage fees)

@jamisojo 2 ай бұрын

Find "no transaction fee" situation. I'm pretty sure Fidelity doesn't have transaction fees if you look for them and and I doubt any of the other big firms do either. Check ahead. I did learn not to buy a vanguard fund in my fidelity account. I think I had to pay 75 bucks to sell or something like that. Maybe even 0.75%. I don't remember anymore but I would never do it again.

@ThatGuyInBlueRoom 2 жыл бұрын

Buffett probably recommends the index fund because the people asking for that advice can't properly evaluate financial statements. He makes *way* more money picking individual stocks. He started out with aggressive value investing, but it wasn't scalable. (Berkshire tiling company went bankrupt.) When he linked up with Munger he scaled up by buying "great companies at fair prices." Buffet bought insurance companies and invested their cash float. The goal changed from making money to keeping money safe with moats. Buffet's work is his investment; other people buy index funds with regular salary contributions. Essentially his advice for others is to save effectively, but it's not proper investing; it's unreflective.

@jamisojo 2 ай бұрын

He makes way more money because he borrows money from his insurance companies to leverage his investing. The guy has been doing business since he was like 5 years old. For the rest of us, just take his advice and do passive investing. 😁 Trading is certainly not investing.

@kaciewolverton2692 2 жыл бұрын

Just found this channel and really appreciate your perspective. Not new to investing, but nor am I an expert. Reminders of basic principles & long-term perspective are super useful, especially in tumultuous times

@tjthompson416 2 жыл бұрын

This helps a lot. I've been on the fence lately. Thank you!

@JONN495 2 жыл бұрын

First watched this channel which had a different name two years ago and became inspired enough to drop $10,000 into VAS. Now watching a few years later and realised the mistake of not dollar cost averaging... Would have caught some of the lows during the pandemic... Moving forward, it's going to be regular investments. PS. cool animated intro!

@huguesjouffrai9618 Ай бұрын

This is actually a mistake. If you had done DCA over, let's Say 2 years, it was just as likely to have collapsed just at the end of the 2 years as during the 2 years. You're actually trying to Time the market even though you think you're not. DCA makes sense if you're investing part of your income regularly otherwise it doesn't. For a lump sum, on average you'll just lose the average returns on the cash you don't invest asap. And you're just as likely to get a wrong market Time just After you finished investing your lump sum over a period as you would have been buying everything from the start

@ChingTeoh 2 жыл бұрын

Hi Brandon, thanks for the informative videos. Have been learning a lot from you. I have one question, about age. I'm now 50, does this method of investing still work for me?

@atomada15 2 жыл бұрын

do you put AFI in this index fund/ETF category?

@jamisojo 2 ай бұрын

You might as well spell out the acronym. We aren't going to look it up for you. 🤷😁

@Hshjshshjsj72727 3 ай бұрын

I think Dave Ramsey and another channel said that dollar cost averaging an index fund is not ideal , that lump sum investing if you had the lump sum like you said $100,000 you should put it on all at once when you have it. Now I haven’t looked into either ones so much but just thought I’d chime in with that.

@Alexander-Bunyip 2 жыл бұрын

Brilliant. Simple. Great illustration from 2017.

@NewMoneyYouTube 2 жыл бұрын

Thank you! Cheers!

@LMRespect 2 жыл бұрын

Great video thank you

@learnwtea 2 жыл бұрын

Amazing tips! Learn from your mistakes, and never give up! :)

@stefanoercole6569 2 жыл бұрын

Hi Stefano from Italy. Thank you for ypur video a very wise advice.

@davidschelkens9481 2 жыл бұрын

I am currently investing in my house. I had some stuff that needed doing, so I am spending my money on that. Messes with my investing routine, but can't be helped. It will pay itself back when I sell 3 years from now.

@rs-tarxvfz 2 жыл бұрын

I like how you justify each statement with facts and figures.

@dev4statingx90 Ай бұрын

$10,000 in 1942 was a ton of money.

@AKGamer-xk3eo 2 жыл бұрын

For new investors a lesson from Warren Buffett is : always wait for right opportunity when you there is euphoria sit calm and wait for explosion and after there is silence in market just buy at the lowest possible and keep follow up of your holdings

@drew9312 2 жыл бұрын

Excellent video. Thanks for compiling this- from the UK.

@timothygrashaw5233 2 жыл бұрын

It did put my mind at ease thank you!

@danielbrito5323 2 жыл бұрын

You are incredible. Greetings from Brazil!

@laportafrank 7 ай бұрын

I have been following your videos for Months now and i have been wanting to make outstanding progress with my investment. Truly, The SP500 is a self-correcting portfolio, Following this principles, i want suggestions as to a way to protect my portfolio of $580k.

@Defisher 7 ай бұрын

Hoe do I Find this Lady?

@AliceHh_ 7 ай бұрын

How do i Find this counselor?>

@wholeNwon 3 ай бұрын

Time protects you not advice from shills that will follow.

@whatusayingangsta3642 2 жыл бұрын

A revelation for me was that a stock can be at all time highs while the RSI is not in the oversold zone.

@MICEVVV 2 жыл бұрын

God bless you I was waiting for a video like this it gave me ideas. Subscribed!

@janeconway4152 2 жыл бұрын

thanks- very helpful

@caddie1a 2 жыл бұрын

Please do a video on the difference between a passive investor & a defensive investor. I think there are differences. All passive investors are defensive investors, but not all defensive investors are passive investors.

@kevinn6482 2 жыл бұрын

Enjoyed your video, very logical and easy to follow review of Warren Buffet advice. Thank you.

@chitteshsham965 2 жыл бұрын

I was pondering on this question for weeks now. THANNNKKKKKSS

@NewMoneyYouTube 2 жыл бұрын

Thanks for watching Tess!

@thierryhenry8421 2 жыл бұрын

Congratulations. You missed out on a considerable reduction in market prices already.

@Oldtimerider 2 жыл бұрын

So what’s a reasonable time frame to invest 100k over ?

@DanGibsonGuitar 2 жыл бұрын

Fantastic content, thank you !

@mattgilstrap7295 2 жыл бұрын

Really loving the content on this channel.

@rebeccaharris7890 2 жыл бұрын

Thank you, that was very helpful!

@jamiemiller6156 2 жыл бұрын

I've backed off my routine investments by half. When the market comes back to reality a bit I will resume my regular amounts. For the time being, I am just banking the difference. I just cannot ignore the fact that I feel the market is extremely inflated at the moment.

@rickgraham7641 2 жыл бұрын

Have you thought about keeping some money in stablecoins? No price fluctuation and some places offer upwards of 9% interest.

@customersupport9055 2 жыл бұрын

You sound silly boy

@jamisojo 2 ай бұрын

You're not wrong. But you're also likely to miss some very big days when the market bounces up later. Good luck trying to get on toward the bottom. I've tried and it is harder than it sounds.

@anthonyschneider8835 2 жыл бұрын

I wouldn't stop putting money into index funds at my age, but knowing that the market is overvalued it's perfectly sensible to reduce contributions and pay off debt until the market cools down a bit. I think it's also good to have a bit more diversity in a market like this. Being able to pick individual stocks in a time like this also helps IMO.

@droprelease4820 2 жыл бұрын

paying off debt is technically a great investment strategy

@richardroberts1594 2 жыл бұрын

Couldn’t agree more

@skyfe5430 2 жыл бұрын

How do you know it is overvalued though? If we knew when the market is overvalued, we'd know when it's undervalued. Then we'd be able to time investments and beat the market. Which is proven over and over to be a very difficult task, possibly even impossible.

@brandongutierrez7449 2 жыл бұрын

Paying off hight interest debt is great! Once you get those out of your way, keep your fixed low interest ones, and buy a low-cost index fund. (NOT FINANCIAL ADVICE) LOL.

@ricardodelacrvz1400 Жыл бұрын

@@skyfe5430 he doesnt know. he making assumptions. you need to constantly put in the money on a certain schedule. you can alaways capital allocate during your life to better pastures but the most important is to inject money as early as possible. Im talking from a fairly young perspective. if you close to retirement you might need to adjust your thinking but I dont think skipping the market will make you more money than investing regularly and theres multiple math studies that prove that. looking at only price is not investing. you not buying a home. you buying stock that you can cash out later or buy other stock.

@rileycook5986 2 жыл бұрын

Great video! Thanks. Personally, I dollar-cost-average Ray Dalio's All-Weather-Portfolio. Lots of similarities :)

@shaunrosenberg4568 2 жыл бұрын

It's funny b/c the S&P 500 is at an all time high due to the shiller PE ratio. But if you do some research most of the companies that have huge PE ratios and are skewing the average are companies everyone is saying is undervalued due to their growth. Only time will tell.

@JC-li8kk 2 жыл бұрын

Several stocks are trading with a PE under 10. Oddly enough those are the ones still getting crushed while the stocks with a PE of 30+ mosey along like nothing is happening. Once those get crushed it’ll be safe to invest in the market again.

@jamisojo 2 ай бұрын

@@JC-li8kkthe ones with a very high PE probably have the largest chance of huge growth. That is why people are willing to pay the 30p/e ratio. If you are a passive investor like virtually every normal person should be, then I wouldn't get bogged down in p/e.

@Dejan-hl1je 2 жыл бұрын

Really enjoying your videos, keep it up :)

@caddie1a 2 жыл бұрын

I too am confused by the conflicting info from Graham. I DCA for over 20 years, but find myself following Graham after reading the Intelligent Investor & realizing that I don’t have as much time as before. I’m a defensive investor for sure now!

@stevenmiller2820 2 жыл бұрын

I’m pretty good at picking stocks, but the most money I’ve ever made was from DCA.

@pedromiranda0 Ай бұрын

Hands down, this is one of the most important videos I've seen in Investment. Great content! 👏 I wonder if anyone has looked into a strategy of "dynamic" dollar-cost averaging: increase the contributions when the market is going down and slow down the contributions when it goes up. Any performance comparison studies out there?

@andresetiadi3787 2 жыл бұрын

is DCA works for big caps Stocks?

@NewMoneyYouTube 2 жыл бұрын

Dollar-cost averaging can be applied to anything, if it fits with your investing strategy!

@patrickgarrett7511 2 жыл бұрын

Pleased to be part of your work to help educate investors. Terrific insights, simply delivered. Well done, Brandon.

@NewMoneyYouTube 2 жыл бұрын

Cheers Pat!

@coachandisingh796 2 жыл бұрын

Thank you so much! This really helped me with my nervousness to go in right now, and extra bonus -- answered my question about investing all our amounts, which I pulled out a few years ago when I wanted to get some learning under me and missed the covid bust, but all the boom. I have $200k to invest, and everything I've read says to not dollar-cost average but it wasn't sitting right with me. I'm so relieved to hear from the master -- yes, get in now, but not with all of it. Get in now and keep getting in consistently!

@richkgmail997 2 жыл бұрын

AAII (American Association of Individual Investors) recommends going in over 10-12 months for lump sums if you think you are a market highs, I believe. If there is a downturn, accelerate your purchases - either totally or to some extent. Time in the market matters more than timing the market. Also, each year the S&P 500 hits numerous new "highs" unless you are in a bear market.

@hansenz28 2 жыл бұрын

Great video, very helpful! Keep it up!

@Kaynem_official 2 жыл бұрын

Both have similar functions we winning

@aeataman6685 2 жыл бұрын

Nevertheless, listen to my advice. It's too expensive right now.. I think wait for it to get cheaper for a while.

@bombdrive3880 Жыл бұрын

Where can I read that paper shown on the video from Warrent buffet

@wholeNwon 3 ай бұрын

There is no such person...duh.

@jamisojo 2 ай бұрын

I would Google it. It may be on the Berkshire Hathaway website. It was probably part of their annual meeting that year.

@arrrryyy 2 жыл бұрын

Schiller p/e is not taking account fed’s balance sheet

@macfin4862 2 жыл бұрын

Set your super up to be passive etfs and make extra contributions, I'm loving the income tax deductions and it forces me to be long term whether I like it or not.

@jamisojo 2 ай бұрын

I like mutual funds because I don't have any reason to buy or sell in the middle of the day. I also like that there seems to be a lot easier access to information about the mutual funds.

@SM-fm4eb 2 жыл бұрын

Great advice. Thanks!

@lukeevans3557 2 жыл бұрын

how do you invest? do you passive invest and actively invest?

@jhonmacraimbanajokora8657 2 жыл бұрын

My problem with not putting a big chunk is you'll have to pay more transaction fees which accumulates overtime XD

@rs-tarxvfz 2 жыл бұрын

Other is not getting physical dividends when buying index funds.

@jamisojo 2 ай бұрын

I don't pay any transaction fees when I invest. Are you investing online with somebody similar to Fidelity and Vanguard? You can easily find no transaction fee (NTF) mutual funds at Fidelity. I'm not sure if your problem has to do with not meeting the minimum required deposit amount? If that happens to be the case and the minimum is 2500 or 5,000, I might just save up that amount before investing. You aren't missing anything by waiting a few months or a year or two. And if you're not planning on investing a great deal more than $5,000 in the next decade or two, you should reconsider investing. Investing just a little isn't going to get you anywhere.

@Flip2Flower1 2 жыл бұрын

You are a very bright and encouraging young man, and so far I have not found a video you have made that I did not like or did not help me in some way

@larryb131 2 жыл бұрын

As someone who smartened up late, Do index funds make sense if you have a shorter time horizon? in my case about 10 years.

@ianmcat 2 жыл бұрын

According to a study conducted by US passive investing powerhouse Vanguard back in 2016, lump-sum investing generates better returns than its drip-feed counterpart roughly two-thirds of the time.

@dava12333 2 жыл бұрын

Vanguard back in 2016: lump-sum investing generates better returns than its drip-feed counterpart roughly two-thirds of the time. This was true regardless of asset allocation (e.g. whether you had all your money in equities, all in bonds or a 50/50 split) and whether your money was invested in the US, UK or Australian markets. Nevertheless, the average outperformance of lump-sum investing wasn’t that big (2.39% in the US, 2.03% in the UK and 1.45% in Australia).

@DailyDoseOfInternet 2 жыл бұрын

yes by a whopping 2% difference.

@nitwit1107 2 жыл бұрын

@@DailyDoseOfInternet well if your whole argument is that one way is better than the other. But it turns out that the other way is actually better. Wtf kinda response is 'yes, but only by a little bit'.

@wrijin 2 жыл бұрын

@@DailyDoseOfInternet 2% is a pretty big difference. For reference, a 1-2% expense ratio on a mutual fund or ETF can almost HALF your investment over a 40 year time period.

@omkarbhagwat895 2 жыл бұрын

Lumpsum investing better in a bullish market. Periodic investing better in a bear market. Over a long period of time 10-20 years periodic is better

@emilebichelberger7590 2 жыл бұрын

So when I buy stocks do I leave them on the exchange I bought them on?

@HHalcyon 2 жыл бұрын

Unless there's a problem with the service provider (fees, financial stability, political reasons) yes, you leave them as is.

@jamisojo 2 ай бұрын

I would only buy them in mutual funds or ETFs. I wouldn't buy individual stocks.

@mitcha5768 2 жыл бұрын

Hey Brandon, would love to see a net worth update seeing as your channel has grown so much.

@98password 11 ай бұрын

Great video, thanks

@mattsennett 2 жыл бұрын

Brilliant video showing the power of regular drip fed index fund buying. If you can't be a trader then don't try to be a trader and just buy, add and hold onto a decent index fund.

@jamisojo 2 ай бұрын

I agree completely matt. This video was spot on.

@signedelacroix7213 4 ай бұрын

The detail of the big chunk is VERY VERY APPRECIATED. 😮Thanks.

@venil82 2 жыл бұрын

Thanks!

@nilslindqvist8825 2 жыл бұрын

I’d like to see the 10 000 turned into 51 million adjusted for inflation. Still impressive, I’m sure, but not as impressive…

@bossoholic 2 жыл бұрын

About $3m of 1942 dollars. 300x gain

@peterhans8905 2 жыл бұрын

Are other Index Funds like FTSE All-World fine as well?

@responsiblewealth7509 2 жыл бұрын

They're different obviously but they're 'fine' in the sense that they're good investments for broad exposure to different markets :)

@gregl2808 2 жыл бұрын

Removed all of my index funds in may. Keeping alway from tech stocks ..entergy stocks were attractive, finally getting good gains, and the dividends are great. Enjoy your content.

@nathanevans6693 2 жыл бұрын

Indexes went on an absolute tear since May though. So you have lost out. This is exactly why you should have carried on investing rather than trying to time the market.

@gregl2808 2 жыл бұрын

Maybe in your view. Now, making 300,000. Year in dividends. I'm in retirement.

@daweigo6851 2 жыл бұрын

@@gregl2808 why you watching this Chanel then😃?

@gregl2808 2 жыл бұрын

@@daweigo6851 i watch alot of you tube channels, I've escaped alot of stock market crashes in life my exiting the markets early. I'm not trying to offend any views, so if i offended you, my apology. I've been holding txn and Microsoft for the lifespan of my portfolio. Started buying them in 1984. Exit them briefly sometimes, just like the oil, and gas sector. I buy commodities too. 😁

@rayzhou3151 2 жыл бұрын

Which energy stocks or ETF’s do you like?

@BryanInvest 2 жыл бұрын

Generally yes but time horizon is important. If you have 30 years ahead of you then dollar cost averaging is statistically the best thing you can do.

@ignaciopazgarcia5370 2 жыл бұрын

30 years? Thats for kooks. I have 60

@ianmcat 2 жыл бұрын

Over a long term horizon, lump sum investing statistically beats cost averaging two thirds of the time.

@ignaciopazgarcia5370 2 жыл бұрын

@@ianmcat no. Ask hedge funds and their statistical ×100 Bloomberg terminal per computer

@matthart5817 2 жыл бұрын

Hmm, wouldn't it potentially be the inverse? E.g. The longer your time horizon is the less it matters whether you are buying in at a short term high, even if there is a drop that lasts years, you'll come out ahead in the long run and the missed opportunity for savings on asset prices/increased gains will be a smaller % of your long term increase. Whereas if you are looking at a shorter time frame for when you want to realize your gains and make use of your money, failing to dollar cost average heading into a dip could have a more significant effect on your earnings?

@heathparkinson5862 2 жыл бұрын

Great video, I have one question which I think is relevant atm. Would it be worth diversifying by investing in other markets - it seems the S&P may be getting hit particularly hard in the near future with inflation etc etc Would we be wise to also invest in other countries markets as an insurance policy perhaps?

@fanban2926 Жыл бұрын

@jamisojo 2 ай бұрын

Our inflation is not as bad as most of the rest of the world. And I don't think inflation hurts the S&P. Having your money not invested would hurt you.

@boatmandan9945 2 жыл бұрын

Just quietly don’t mention the zero returns the s&p gave from 2000 - 2012ish. So yes a long time horizon is certainly required as the market does not always go up.

@jesanmathew9210 2 жыл бұрын

What's the best broker in Australia?

@bobsandone3108 2 жыл бұрын

Let's say I retired with $300,000 in a 401(k) and wanted to transfer that money to a holding spot (IRA) until I started pulling out and investing $25,000 every two months into an S&P 500 Index fund. Where do initially hold the original $300,000?

@Gustocolling42 Жыл бұрын

Can anyone please advise how it is determined if a dividend is to be paid or not for an ETF? Sometimes they just don’t pay a dividend and don’t appear to give an explanation.

@DocOrtmeyer Жыл бұрын

There are “accumulating ETFS” which means that extra shares are purchased with the dividend. This is a tax benefit, because you don’t pay tax on the purchase of the new shares :)