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Millionaire Invested $100 & Made $_____ (How to Invest For Beginners - Episode 2) - YouTube
Channel: Mark Tilbury
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hi guys it's mark a lot of you really
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enjoyed the last video i made where i
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invested a hundred dollars in lots of
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different ways and today it's finally
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time to share the results and break down
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how much money i made there's also a bit
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of a twist because i've invited a guy
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called tomrad who's never invested in
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his life he doesn't have a job right now
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and he's been finding things really a
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little bit tough while he thinks he's
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coming around for a simple
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how to invest for beginners tutorial
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i've got a surprise planned for him i'm
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actually going to give him some money to
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jump start his investing journey as i
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would really have appreciated that at
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his age
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if you like this idea and you want me to
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do it with more people then make sure to
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smash that like button to let me know
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i'm really excited for this one i can't
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wait to see his face he'd be arriving
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any minute now
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so we're here with tom how are you i'm
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not too bad yeah
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a very difficult time at the minute you
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know i've been looking for a new career
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path and a
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new job i know you've spoken a little
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bit about it being interested in
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investing
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yeah i am very interested but i don't
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know that much about it actually
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i mean i've been watching a lot of your
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videos my friends have been watching a
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lot of your videos and they've actually
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started investing so
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i'd like to give it a try well that's
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good well that's good to know because
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that's what we're trying to push out to
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get young people investing early
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so tom we've made a video recently where
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i invested a hundred dollars into lots
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of different investments
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and during this video we're going to see
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how those investments went should we
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dive straight in
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definitely let's do it so this is the
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first investment this is a high interest
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savings account
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and we invested a hundred dollars and at
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the moment that's had a return of 0.004
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and the reason it's lower than when we
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started is because they lowered the
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interest rate
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so our profit is four cents
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four cents that doesn't seem like a lot
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why would i invest in that so this
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investment
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isn't about the interest you're going to
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gain because nowadays it's really really
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hard to find a really high interest
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savings account the real reason one of
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these is so valuable is because you can
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use it as a backup fund and you should
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have in there around about four to five
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months of your living expenses why would
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i need that well the reason is
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is because if you have an emergency in
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your life i mean you might have a flat
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tire on the car or the engine in the car
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might blow up whatever the reason
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you've got the cash to hand to be able
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to sort that problem out immediately
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without having to go and borrow the
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money which is going to cost you a high
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amount of interest so basically it's not
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about the money you make it's about the
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money you save
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you've got it something a lot of people
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don't know but 78
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of americans live paycheck to paycheck
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so by doing this you're already ahead of
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a lot of people well that's where i want
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to be the second investment we made was
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into gold oh i love a bit of gold
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well we all like a bit of gold and we
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invested a hundred dollars into this
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um the return on this was minus 0.98
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which means we lost 98 cents so
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why would i invest in something that
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loses money because it protects you
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against inflation what's inflation well
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think of it this way
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this dollar has actually lost 95 percent
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of its value since 1913
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and that's why your grandma and your
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grandparents always say they could buy
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so much more with their money when they
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were younger well that makes sense but
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how does that link to gold well that's
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actually an easy one because as your
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dollar
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loses value gold generally goes up in
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value
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so by investing your dollar in gold
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you're keeping it a lot safer
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well how come you lost money well
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because the gold market
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always fluctuates so gold basically
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moves in the opposite way to inflation
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as inflation goes up
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the price of gold goes up i never really
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thought about it like that do you just
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buy blocks of gold well you can do that
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but i prefer to invest into etfs and
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etcs which means you can buy and sell
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gold
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much much easier so what's an etf an etf
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is an exchange-traded fund which means
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they hold the gold for you you don't
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have to physically hold it and put in a
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safe or anything like that
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they store it all over the world and
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there are billions stored up and you can
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actually buy and trade it on the stock
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market well that's interesting i didn't
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know you could do that so just to finish
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this section off
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gold is a very very rare thing you can't
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make any more of it well you can but
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it's too expensive to make it so you
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wouldn't
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so it won't lose value the same way that
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money will unless of course elon musk
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finds a great big media that's full of
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gold of course and he might do that
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investment number three was an s p 500
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index fund
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and we invested again a hundred dollars
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our return was 1.84
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which gave us a profit of 1.84
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well that's a good profit but what's an
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index fund owning a stock is like owning
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one cow
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whereas owning an index fund is like
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having the whole herd so imagine if you
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own just that one cow
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and it dies you're out of milk but if
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you own a small piece of
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all the herd and if one dies it really
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doesn't affect you for example what we
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chose is the s p
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500 which is the 500 top companies in
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the usa
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such as amazon apple and now even tesla
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so i can invest in all these companies
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in one go yeah you certainly can and the
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fees are really low because it's
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passively managed they don't have
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experts managing all the different
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stocks
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and pretty low risk because it's
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diversified over all these different
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companies
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so i'm not gonna lie mark but you're
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only making a profit of one dollar
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why should i care well the thing here is
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that 1.84
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is only over a month and a half and if
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you actually invested a hundred dollars
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at eight percent growth per year over 45
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years
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you would have over half a million
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dollars in your account
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that sounds amazing and you know what
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that hundred dollars a month can just be
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by
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having a few less coffees from starbucks
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or doing a side hustle
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it's easily found and invested into an
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index fund
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every month investment number four in a
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reit and that stands for real estate
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investment trust
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and we've invested again a hundred
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dollars our value has actually
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dropped by 0.4 which is a bit of a pain
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but we did get a dividend which is
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really cool of 57 cents which means we
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are actually in profit
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by 11 cents so what's a reit
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so imagine you've gone around and you've
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borrowed lots of money from all your
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friends and you've got enough now to go
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buy a property and you rent it out and
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of course because you're a nice guy
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you split all that rent with your
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friends so that dividend
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is that share of the rent yeah that's
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spot on and it's from things like
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offices
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hotels things like that that are owned
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by commercial companies
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and because they have to sign such long
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leases it's a really secure income
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so this is how i can get into real
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estate without buying a property
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yeah think of it a bit like um you know
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i own the front door you might own a
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window your other mates might own half a
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dozen bricks so you all own a little bit
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of it
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and then get paid the rent in return
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i've always wanted to go into property
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so this could be my way in
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investment number five is sort of my
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bread and butter it's business
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buying and selling and i actually did
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some research and found a model engine
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that was underpriced which i then
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sold on ebay and also the guy gave me a
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model aeroplane as well which i sold
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so we made a profit of 67.87
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why is the risk level of 4 out of 10.
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well this relies on your knowledge of
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the things that you're buying and
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selling
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because if you can find the right things
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you can make money from i'm really into
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star wars well star wars toys are worth
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quite a lot of money and if they're in
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their packets
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you could earn a fortune from them all
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right you piqued my interest
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where would i look for these things well
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facebook marketplace is great and also
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ebay
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and i often look for missed type titles
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and that way you can get yourself a
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bargain and sometimes people don't
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photograph the things very well so
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they're going to go for a lower price
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better get myself a bargain then and the
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great thing with this is you can repeat
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the process
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over and over again one guy went from a
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paper clip to an entire house
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investment number six is samsung
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individual stock and we chose this stock
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by having a dart board
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on the wall and we had 20 randomly
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selected companies around it and we
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landed on
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samsung so this was a completely random
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investment yeah and as you can see from
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a hundred dollars we've actually made a
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return of 19.4
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which is actually 19.43
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wow so that's with a risk level of 6.5
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yep so the higher the risk the higher
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the reward would you say
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luck was involved in your dart throw it
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was lucky i hit the board not only
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blindfolded i didn't have any glasses on
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either so it's a
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absolute wonder of course luck and
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timing is always a critical part of
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stock investing of course you can do it
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without throwing a dart on the board
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because you can do fundamental analysis
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what's fundamental analysis so that's
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when you look at the financial
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statements and balance sheets and also
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the leader of the company and this can
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all be found on yahoo finance if you're
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interested
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so what's the best way to get started
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well if you deposit 100
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on weibull they'll give you four free
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stocks at the moment i'll leave the link
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below and for you tom i'm going to leave
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a link for trading two one two if you
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want to pick up a free stock that's fine
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if you're in the uk or europe free stock
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for nothing
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count me in investment seven is crypto
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and we decided to invest in bitcoin we
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invested 100
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as before and we got a return of plus
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98 so in a month we've made nearly 100
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of our money back that's amazing so are
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these
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actual coins no they're not actual coins
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but they're digital coins the great
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thing with bitcoin is it's decentralized
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so it's not actually controlled by any
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government
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and this puts some people at ease
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because the banks can't control their
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money
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so can i spend this bitcoin yes and more
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and more businesses are actually
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accepting bitcoin now and the more that
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do
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the more the value goes up and remember
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this dollar it's just losing its value
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because they're just printing more and
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more and that won't happen with bitcoin
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because there's a limited supply
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but i heard about bitcoin they're making
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them all the time well actually they're
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just mining them and they're finding all
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the little bits that are out there and
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once they're all found and they're all
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mined
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that's it there's no more and that'll
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probably happen in the 22nd century so
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that's quite a long time to wait
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should be fine but one of the problems
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with bitcoin of course is very volatile
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so its value is going
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up and down all the time on the 17th of
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december 2017
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one bitcoin was worth over 20 000
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but days later on the 24th it was worth
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under 14
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000. so it's a win or lose situation
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yeah i'd say so
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for anyone who wants to get started i'll
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leave a link down below where you can
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get ten dollars of free bitcoin
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so investment number eight was actually
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to be fair at gamble it was lotto
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scratch
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cards we invested a hundred dollars and
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our return was
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minus fifty percent which meant we lost
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fifty dollars
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so why would i want to invest in lotto
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scratch cards
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you wouldn't that's the point so of
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course it is the highest risk it's we've
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given it a 10
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but you could win big and that's what
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makes it exciting and that's why people
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do it
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yeah i don't think i'll take a risk like
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that well you say that but 50
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of americans do this every year and
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that's a sad thing so the grand total is
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108 profit which is 11
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growth over a month and a half what do
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you think about that i think that's
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pretty amazing considering one of them
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was a lucky dart
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shot yeah it's not bad at all really and
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10 is considered average for a year's
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growth so
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i think we did pretty well me too so i
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have a challenge for you
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i invested a hundred dollars in eight
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different areas which is eight hundred
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dollars i'm going to give you 800
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right now to invest in your three top
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choices of what we've invested in
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so see if you can beat what we've done
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seriously you've got 800
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what are you going to do with it i've
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got to start investing you can split the
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money however you want but at the end of
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the month you get to keep the entire
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amount
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100 of the investments wow that's
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amazing i've always wanted to invest so
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this is a great opportunity for me
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that's what we want everyone to do we
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want everyone to be out there investing
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and getting ahead in life so
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what you're going to invest in i'd like
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to take a quick look at all the
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investments we just talked about if
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you're already that's absolutely perfect
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i'd say that's the best thing to do so
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here they all are here perfect
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so while he's picking his investments
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why don't you put your top three down in
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the comments below i
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read all of them and i'd love to see
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what your choices are uh that's a no
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from me because it's low profit
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okay gold that's a loss so that's a no
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from me okay
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s p 500 index fund well it seems like it
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gets a good percentage
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and it's probably the safest option i
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think they'll go with that definitely
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okay how much do you want to invest in
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that i think i'll put
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200. so we're going to go straight on to
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trading two one two we're going to go to
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one of the links in my video and we can
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get you a free share as well how good's
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that so now we're going to go on to the
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s p
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500 do you want to type that in smp
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oh that's the first one yeah okay so
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it's a vanguard s p
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500 etf so we're going to put into that
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200
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so now we're going gonna buy there we go
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so now you own a share
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in the 500 of the top u.s companies just
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like that that's amazing so you go off
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to your mates and tell them you own
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amazon facebook
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you name it then we've got investment
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for
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which is the reit now looking at this
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it's definitely a no for me because it's
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low profit
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okay business buying and selling it's
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got the biggest profit
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and if it was a different time i
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probably would be doing this one
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or it would be my fourth option if i got
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it well to be fair
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i was quite lucky with that and i do
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know the subject very well so i did get
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a particularly high return
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the individual stock on this you don't
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have to buy samsung stock you can buy
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any stock on the entire stock market
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oh well that's good so i might even find
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something that gives me a higher
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percentage you may well do
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definitely going to go for that one i
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think i might put actually 400 in there
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you might be on track to beat me with
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that one so we've got all these stocks
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available to you tom
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so which ones have you got a feeling
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towards uh i definitely like the look of
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tesla and google so we're going to go on
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to tesla
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so we click on buy so how much do you
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want to invest in tesla
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uh i'm going to split in half so i'm
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going to put 200 in there you want to do
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the honours
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boom you now own part of tesla how about
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that
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that's amazing and you said google
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google yes
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so do you want to hit the button yep
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that's another 200 into google look at
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that you own part of google
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as easy as that the next one is bitcoin
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crypto i like the look of this one this
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one probably has
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the highest profit but it also has the
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highest risk level yeah but it's
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exciting
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it is very exciting so i think i will
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take my chance in it
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okay tommy so whip out your phone and we
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can go on to coinbase and we can take
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advantage of that ten dollars worth of
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free bitcoin so how's it feel spending
[847]
all this money on
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bitcoin it's great and i'm hoping i'm
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going to make a bigger profit
[852]
bye now let's go for it
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it's submitted done it
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high five high five i'm going to leave
[862]
the next video down there don't click on
[864]
it just yet
[865]
consider subscribing to the channel if
[866]
you want to grow your wealth ring that
[868]
whole notification bell and don't forget
[870]
to smash that like button
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okay i'll see you on the other side
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