Millionaire Tries The Investing $1,000 Challenge! (How to Invest For Beginners) - YouTube

Channel: Mark Tilbury

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have you ever wondered how to turn a
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thousand dollars into a small fortune
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maybe you think it's impossible
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especially as we're facing a devastating
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recession however today i'm setting
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myself a challenge to prove this can be
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done i've hand selected five different
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investments these include index funds
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business art individual stocks and
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cryptocurrency the data suggests these
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are good investments during a recession
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therefore after looking at each in
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detail i'm prepared to put a thousand
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dollars of my own money into every asset
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so we can see the results together
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however this might not go quite a plan i
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never thought i'd spend a thousand
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dollars on this no
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look at that if you gave me five dollars
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every day and i gave you fifty dollars
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back would you be happy with that deal
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of course you would so why aren't you
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taking it
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let me explain this leads me into
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investment one index funds i'm giving
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this a three out of ten on the risco as
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it's been delivering solid returns for
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decades the figures don't lie if you
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invest five dollars every day let's call
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that a hundred and fifty dollars per
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month into the s p 500 at an average
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return of eight percent for 45 years
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then you would have 791
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000
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now according to google there are 16
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436 days in 45 years so now if we divide
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791
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361
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by 16
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436 days we can see that every five
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dollars you put in has turned into 48
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that's pretty close to 50 dollars now i
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bet that's got you thinking about your
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five dollar starbucks frappe a bit more
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carefully index funds are seen as one of
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the safest investments over the long
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term however during a recession they
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become even more appealing this is
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because instead of betting on individual
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companies to pull through the tough
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times you're purely investing in a
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long-term success of the whole market
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think of it like going to a horse race
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and instead of putting all your money on
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one price stallion you decide to spread
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it across all the top performers so now
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if one or a few of them lose it should
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be okay because you will benefit from
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the others winning this is a proven
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winning strategy over a 15-year period
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92 of the top hedge funds are trailing
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the s p 500 index i mean these guys are
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meant to be the experts but they are
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getting destroyed by a very hands-off
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investment which is so easy to manage
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you may think the s p 500 isn't very
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well spread as it's only made up of the
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top 500 american companies however as of
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2017 only 70.9 of the companies that
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make up the s p 500 revenue were from
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the us so it's a lot more global than
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you might first think but if you want to
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spread your money further then there are
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lots of different funds that cover
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different countries and companies i have
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some of my money in emerging markets
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index funds as i believe we're going to
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see a big shift in global powers over
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the next five to ten years even though i
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also invest elsewhere for bigger returns
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i always gradually buy index funds
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whatever the market's doing be that
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trending up or down there's multiple
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brokers you can use if you're in the us
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you can use public.com i'm going to use
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my uk vanguard account let's put 750
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into the s p 500 and 250 dollars into a
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global index there we go all done 88 of
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millionaires are self-made entrepreneurs
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according to fidelity investments
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research so that brings us on to
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investment number two business i'm
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giving this a 3.5 on the risk scale as
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unlike index funds you could lose all
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your money in a bad business move
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however the power is in your hands not
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someone else's if you haven't started a
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business then now could be the perfect
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time as we head into a recession there's
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a good chance you'll be starting from
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your home and have minimal employees and
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very little overhead to maintain at this
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point that combination puts you in a
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great position to provide an inexpensive
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solution and win over customers in an
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economic downturn businesses and
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consumers alike are looking to cut costs
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which may allow you to break into the
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market but your window of opportunity
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could close soon as recessions are
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typically short-lived and followed by
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long periods of growth and prosperity
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the period after world war ii for
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example is considered the greatest
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expansionary phase in modern times
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similar points can be made for the years
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after the energy crisis recession the
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gulf war recession the dot-com bust and
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the great recession each recession was
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followed by a longer period of growth
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than the period of recession the biggest
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mistake i see people making on a daily
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basis is putting all their money into
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assets they don't have direct control
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over as you know i'm not against the
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stock market however i don't think
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enough people value their skill sets i
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was on a call the other day with someone
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in my free discord and he asked me an
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interesting question he was making
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around four hundred dollars per month
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selling pdfs that helped people in his
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country pass the state exam he was
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wondering how he should invest that
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money to make more later on in the call
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i discovered that he was currently only
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selling these templates with organic
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marketing which proves there is a real
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demand for his product if he just
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invested 200 per month back into paid
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advertising within his business he could
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see an immediate return greater than any
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stock market investment i think of it
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like starving a plant of water you can't
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ever flourish in a drought so if you've
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been overlooking business then i implore
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you to dream big and prepare for the
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next expansionary phase at the moment
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i'm focused on growing my podcast strike
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it big we really need a way for episodes
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to be edited as we film them that's why
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i'm going to invest this thousand
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dollars into some new technology which
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should save me time and help us post
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weekly episodes question what do picasso
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and banksy have in common apart from
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being era defining artists the answer is
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you can invest in their work for a
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fraction of the asking price that brings
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us on to investment three fine art i'm
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giving this a 5 out of 10 on the risk
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out you might not have considered fine
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art as a potential investment to be
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honest neither had i until i looked into
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the shocking stats you know the s p 500
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that investment many millionaires don't
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stop banging on about s p 500 index fund
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the s p 500 the s p 500 the s p 500 well
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contemporary art investments have
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actually done better than the beloved s
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p 500 over the last 25 years to be exact
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the s p 500 had a 9.5
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average annual return whereas
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contemporary art averaged 14 price
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appreciation but surely if we're facing
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a recession the demand for these
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expensive paintings will drop and then
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the value of our investment will plummet
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right well actually the global demand
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held up pretty well during the last
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great recession in 2007 global public
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auction sales topped
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32.9 billion dollars while in 2008 the
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figures hit 28 billion dollars this only
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shows a slight dip in demand and it was
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still higher than 2005 when auction
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sales were only
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17.2 billion dollars maybe more
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importantly during 2009 eve celeron's
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art collection set a new record for a
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single owner collection totaling 408
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million dollars to put this into
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perspective this happened just five
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months after the complete collapse of
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lehman brothers and the markets again if
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we look at our old friend the s p 500
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this didn't recover the pre-recession
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levels until 2013
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two years later than the art market due
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to the eye watering prices these
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paintings command unfortunately this
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asset class has only been accessible to
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the already rich and powerful there is
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also a degree of skill involved with
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picking the right pieces that the
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average investor just wouldn't
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understand so how are we going to invest
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this thousand dollars in art well i've
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been doing some research and companies
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like masterworks really stand out as
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they use data that isn't available to
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the average investor and a top research
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team in order to determine which
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high-end artist markets have the most
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momentum they're even asked by worldwide
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groups like city to collaborate on
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reports about the art market this just
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shows how much comprehensive data they
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have they help people get fractional
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pieces of art rather than the whole
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thing this isn't nft's this is breaking
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a painting into shares so people can add
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a piece of it to their portfolio their
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incentives are also aligned with the
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investors as masterworks only make money
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when they sell a painting for a profit
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with this said i still think investing
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in art is for the long term and that's
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why this platform doesn't actually
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accept investors that are older than 70.
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oh damn it looks like i can't invest
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this thousand dollars after all only
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kidding i still got plenty years left in
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me you cheeky buggers masterworks aims
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to hold its art pieces for three to ten
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years at which point it then sells the
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painting and distributes the proceeds
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amongst investors based on their number
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of shares but so far the paintings they
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have sold ahead of schedule have
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delivered 25 net returns for the last
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four years in a row through covid a bear
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market and rampant inflation past
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performance is no guarantee of future
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results but that's pretty incredible so
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with that said let's invest a thousand
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dollars i really like mark bradford's
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promised land it even shows a progress
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bar that lets us know how much of the
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asset has already been bought the
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paintings are valued every quarter so
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i'll be keeping an eye on this closely
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if you also want to get involved and
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i'll leave an exclusive invite link in
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the description below imagine you
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invested one thousand dollars and woke
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up in the morning with ten thousand
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dollars this is what most people dream
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of and it's happened time and time again
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with investment for individual stocks
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however i'm going to give this a 7 out
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of 10 on the risco as finding the best
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stocks to invest in isn't an easy task
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investing in individual stocks gives you
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complete control over how your money is
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allocated when you invest in index funds
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you can't pick and choose the individual
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companies instead you're stuck with
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whatever the fund decides to do so stock
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picking gives you the ability to beat
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the market but bear in mind that ninety
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percent of people lose money hence the
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high risk scale rating if you're
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interested in giving this a shot then
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now could be a very good opportunity as
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the market has fallen from the highs of
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the pandemic and there are lots of deals
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available if you can find them during a
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recession it's more important than ever
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to invest in well-managed companies that
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have low debt good cash flow and strong
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balance sheets you're able to find all
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this information out for free on yahoo
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finance some industries are also
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considered more recession resistant than
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others such as health care if you think
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about it people can't put off most
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health care spending when you're sick
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you need to see a doctor and buy
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medicine walmart and mcdonald's are also
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great examples of companies that have
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thrived during past recessions this is
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because when people have less money they
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flock to discount stores like walmart
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and drown their sorrows in comfort food
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such as mcdonald's burgers however i'm
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gonna invest my thousand dollars in
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apple as they sit on the luxury end of
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the market and people would hate to give
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up their nice phones it's also important
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to remember that most people don't even
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buy their phones these days they finance
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them through contracts this gives people
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access to iphones and puts money in
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apple's pocket regardless of their
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customers bank balances thousand dollars
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of apple ball by the way if you want to
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pick up a free stock worth up to a
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thousand dollars from public.com then
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i'll leave a link in the description
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below when you hear about people
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becoming millionaires from a simple
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thousand dollar investment in a short
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period of time you can only be talking
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about one thing investment number five
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is of course cryptocurrency and i'm
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giving this an 8.5 out of 10 on the risk
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scale back in the day if you'd mentioned
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cryptocurrency to me i would have
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disregarded it as a short-term craze
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however as bitcoin rallied i had to take
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notice the more i dived into the
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technology behind crypto the more
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interested i became i made a goal to
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invest around five percent of my
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portfolio and face some challenges along
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the way such as my bank account being
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closed down this is because bitcoin is a
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digital currency that is not controlled
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by any authority or bank and many
[752]
experts believe crypto and blockchain
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technology will go on to disrupt many
[756]
industries such as banking law cyber
[759]
security insurance and more the top 10
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cryptocurrency coins are always
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fluctuating but the two that remain in
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first and second places by market cap
[770]
are bitcoin and ethereum which i like to
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call the blue chip cryptos these are the
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most popular and safest coins at the
[778]
moment as we're heading into a recession
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naturally prices across the board have
[783]
dropped quite drastically a lot of
[785]
investors see this as a great buying
[787]
opportunity crypto's certainly not
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something to overlook but should only be
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part of a diversified portfolio due to
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its high risk i'm going to invest 500
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into bitcoin and 500 into ethereum using
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the ftx app this is because the fees are
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85 cheaper than the other exchange
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options also i get free crypto on every
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trade i make over 10 dollars i'll leave
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an invite link below if you want to use
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the same deal according to hip hop dx
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the rapper drake has reportedly bet over
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1 billion dollars for our online
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gambling since december 2021. this
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brings us on to something i never
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thought i'd be doing on this channel
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online gambling this is a 10 out of 10
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on the risco the rise of online gambling
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is creating millionaires but is it the
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gamblers making millions or the creators
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let's put this to the test i'm prepared
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to put one thousand dollars of my own
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money on the line to prove to you how
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quickly it can evaporate i never thought
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i'd spend a thousand dollars on this now
[848]
the following clip didn't go to plan and
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goes completely against my narrative
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that gambling is bad so much so that i
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nearly didn't show you this clip
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honestly after this happened i didn't
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think this clip would see the light of
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day whenever i've done a challenge on
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this channel i've always kept it 100
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real such as spinning a crypto wheel or
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throwing in investment picking dart so
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here's what really happened curtis you
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better come in this looks quite exciting
[874]
look we've got all these lollipops going
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on i never thought i'd be doing this
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right ten free spins all right here we
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go then press anywhere to
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continue yeah straight in
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youtube we're doing this oh is that yes
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and some more and some more oh and some
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more oh we've got a 50x what what what
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what four thousand dollars we've
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actually won four thousand
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no way it keeps going up and up and up
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no
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get out of it look at that
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that's crazy that's sensational
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that can't be real can i think it is
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obviously we weren't expecting this
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result it's extremely lucky and the
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chances of something like this happening
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are very slim after a big win like this
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many people get sucked into gambling and
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are always chasing that feeling again
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over the long term the house always wins
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it's like the opposite of investing when
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over the long term you have a high
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chance of success gambling is just a
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rigged game to demonstrate how
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unpredictable games like these are and
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how it can easily go the other way we
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gave it another thousand dollar spin no
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we're getting anything this just shows
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how rubbish gambling is oh no
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it is pretty bad considering we put a
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thousand in and now we've got what how
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much left
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all right 350 or so
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and we put a thousand in yeah terrible
[954]
investment that's not a great investment
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guys so i'm going to leave the next
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video right up there but don't click on
[960]
it just yet make sure to subscribe if
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you want to grow your wealth okay i'll
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see you over there