This Investor Beat the Market by 38% | Lessons Learned

Eight portfolios in our first quarter challenge posted double-digit returns, easily beating the S&P 500 and it’s loss of almost 6% during the quarter. In fact, one portfolio returned 38% in that time.

In this video, we’ll look at those top three portfolios, what they did to beat the market and what we can learn from each. I’ll then show you the strategy Wall Street ETFs and hedge funds use to beat the market and why it works.

Again, congrats to everyone that participated in the portfolio challenge and I think there are some great lessons here we can learn about investing.

First is you notice that none of these portfolios had dozens of stocks. In fact, one had six, another five and the other only two stocks .

I see too many investors chasing every “hot” stock tip they get and I take some of the blame for this. Folks you’ve got to understand, investing has become an entertainment industry. You watch CNBC or some of these other YouTube channels and it’s no longer about good analysis but about shocking you with sensational promises and dreams of becoming rich overnight . So you get information overload and 50 stock picks a day and that fear of missing out if you’re not investing in every single one.

It's why I try to spend just as much time talking about the WHY of investing, how to invest rather than just what to buy, but even I feel like a slave to the monster sometimes and that need to find the next stock to buy .

But chasing all these stocks, it’s just going to limit any returns you actually make on a few. If you have fifty stocks in your portfolio, a few of those could double in value…just blow the doors off the market but your portfolio is so spread out that it barely moves the needle on your overall wealth.

It’s also why I recommend the core-satellite strategy of investing. Putting half of your money in maybe three to five ETFs, those broad-based funds that are going to lower your risk and get you the market return. Then investing the rest of your money in a very limited number, maybe eight to 15 individual stocks.

Because you’re limited to how many stocks you buy, you can only invest in your highest conviction targets, the companies you feel so strongly about that you know they’ll make good investments. That’s going to focus your returns on those and give you the chance to outperform instead of spreading yourself out in too many stocks.

Another idea here is that investing is just as much about market direction as it is picking individual stocks.

It is so much easier to follow those bigger market trends and the investor behaviors, riding those for higher returns, than it is trying to pick individual stocks from the 5,000-plus trading in the market. All you out there in the nation know, this is my favorite way to invest, starting with that big picture…what are the forces driving the entire market, then using that to narrow down our focus into individual sectors or groups of stocks.

My Investing Recommendations 📈

My Books on Investing and Making Money 💰 📗

Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.

[Mike-ixfs]

I went all in on oil stocks and REIT’s during COVID, 78%/yr compounded.😁😁😎😎

[erickeytie]

Thank you SO much for not just being another person spouting picks with no info.
The info you give out is so valuable, and there are still some of us who want to dive deeply into the knowledge, and learn every aspect.
Again, THANK YOU for your videos !!

[TJ-Stackin]

Thanks Joseph!
These days I'm just a passive investor. Only do low cost ETF'S and DCA into them. Too focused on my moving company to select individual stocks.

[Smart_Investing]

*Bonus Comment*
I'm not one to comment much but under this circumstance I guess it's only right to do so since I'm involved. 🙂

Thanks again Joseph for creating this contest. It allowed me to show my skills while using a new platform. I greatly enjoyed the competition and of course the difficulty of choosing which strategy is best in order to win. I'm looking forward to the next one and hopefully more to come.

A last thank you to the participants and most importantly the followers who believe in my skillset throughout this process, it means a lot. Thank You.

[pbr]

This is your best. So I place most of my money is a index. Bought some Apple and now I meet and exceed Kathy Woods advice. True and you are correct. Save and invest, get with me in the morning, Sunshine...

[WorldinRooView]

I did learn a bit about Stock Card, and that I would rather use it as a Historical Strategy tester than to track current portfolios. Especially since dividend gains are not calculated, therefore if you are to develop a strategy on StockCard, make sure you're looking into Capital Gains alone.

[jonahj]

One thing I would like to point out is that cover call dividend strategy will perform better during a volatile market… I currently own 20k$ of RYLD over the years looking to top up, thanks Joseph, your videos have been inspiring

[jviola]

Read the book "A Random Walk Down Wall Street". It explains the market very well.

[jajaja]

Joseph. Please consider doing vids and deep dive on Clean Energy, Lithium and Nickel stocks or ETFs.

[tomshmueli]

It’s easy to win leveraged bets for short period of time … let’s see them against by year end

[jajaja]

Joseph. Would love listen to your feedback and knowledge on VIX cboe volatility index. As to how a layman can easily read and interpret this VIX as an indicator, or generally how to use/read VIX as to how to protect/hedge one's portfolio. Lots of material on VIX exist online, but no youtuber is able to dissect technical topics and explain simplistically as you do.

[jasondavis]

Thanks, can someone by chance transcribe the tickets mentioned in the video I can’t read the screen. Thanks Bow tie nation

[tdcna]

👀 I would like to know, what strategies were used and what was the conviction(s) that motivated their decision(s).
This Week I did all the fundamentals, double checked and some triple checked and i still lost to sentiment. Guess that's something no one can measure. Buy lesson learned, like you said, "follow your conviction", more or less.
I feel afraid of next week, I really am. Buy I'm no coward! I'm just upset at this Week!

[eliotness]

Apparently getting rich over night seems to work for some people.

[matssvensson]

IT Tech Packaging, Inc has market cap by 21, 2 million, current price at 0, 21 and target price is $5. They had (2021) $161 million in revenue with an increase of 59% year-over-year and approximately $11.02 million in gross profit with an increase of 93% year-over-year.

For the year 2021, total revenue increased by $59.9 million. EBITDA increased by $12.7 million, 125.6%, to approximately $22.9 million for the 2021. So what does the revenue mean for the market price? But we look at revenue when we try to determine whether the company is undervalued. Someone who knows what's wrong with this company?