Avoid this DANGEROUS Investing Mistake 2021

In this video, I share a dangerous investing mistake that I call "Headline Investing." It's the idea that you invest solely based on the story that you've heard, and before looking into the fundamentals and valuation of the company. I provide a step-by-step process for my personal investing style that I hope can serve as a helpful guide on how to get further than the headlines.

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📚 BOOKS on my Bookshelf 📚
. The Intelligent Investor
. Rich Dad Poor Dad
. Principles by Ray Dalio
. Flash Boys
. MONEY Master the Game

💡 My Setup 💡
. Camera
. Mic
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. Lighting

Thanks for viewing!

Disclaimer: Everything expressed in this video is a personal opinion provided for entertainment value only. I am not a professional nor a financial advisor. These are not instructions, suggestions, nor directions as to how to handle your money. Please, always do your own due diligence.

[MatthewHuo]

lol 5:00 Tesla** - In this video I share a step-by-step on how to go beyond "headline investing." I'm not sure if that's a term yet, but "headline investing" and not researching a company's fundamentals/valuation can be very dangerous and expose you to lots of risk. The more research you do, usually the less risk involved with the investment. Enjoy!

[maxwelljohn]

On my journey so far I’ve learnt to value information, experience and guidance so thank you Matthew for all the information you put in our hands to help us make better decisions.

[Chrisss]

Becoming one of the most valuable YouTube channels out there, really appreciate the value you add

[jingerman]

love this video and appreciate what you're doing for the community!

[rudyrich]

Love this, took notes, expanding my utility belt. ✌️🙏

[alex.sandr]

So much value in this video, I watched twice!

[ivansim]

Love your video. I'm also using TA for entry points as a long term investor 👍🏻

[calbck]

This version of your channel bangs so much👌🏾🥳

[abelarvizu]

Your research and videos are phenomenal thank you for sharing all your work. 👍🏼

[seungjunlee]

You’re the #1👍 best of best financial Youtuber on this planet Earth🌎 🌍 🌏

[financesimplifiedyt]

Excellent and extremely important video. Good job, Matthew :)

[azulsimmons]

Nice video. After I took that 90% loss during the tech bubble burst, I never overlook fundamentals. I lost discipline. I had exited the market before the crash, but the market kept on rising. After three months I just couldn't resist getting back in. I hopped this company called Mediabay, a company taking old time radio shows and digitizing the content for streaming. I was in my 20s back then and would YOLO into the market putting nearly everything in one stock. For the three years I had been investing everything just kept rising. Didn't matter what it was, it just kept going up or would eventually go up when traders decided to hop on. I started playing a game called Everquest. I didn't look at the market for a few days, huge crash. Tech companies popping all over the place. Lost half my investment. Then you get angry and want to get it back. YOLOed into a couple of DSL stocks that seemed rock solid because DSL was the primary competitor to cable before cable had built out enough of their network to cover all of America. DSL was already built out everywhere over the phone lines. Phone companies took DSL in house, crushed the DSL players. Took 90% losses before I could get out. Whole tech market crashed hard. MSFT sat at 50% loss at its peak for 18 years or so. It hit 100, dropped to 50 and traded in that range for over a decade. It's why I kind of chuckle at younger investors who don't think Google or Apple can drop back to half their current market value and trade their for 10 to 20 years. It could happen. It has happened to equally dominant tech companies. When you're trading in a market with this many tailwinds like low interest rates and unprecedented stimulus, huge momentum, valuations skewed due to a once in a hundred year pandemic, a new tech like crypto, a huge EV push, and all the other factors, this thing could go south and big quickly if any of these factors are disrupted. Stick with your fundamentals and your discipline. You may miss out on some of the lotto stocks some of these people hit, but in the long run you'll cut your downside risk by enough to offset the gains from the lotto picks some people get lucky on. There's a reason there's only a handful of superrich people who maintain their wealth. They don't YOLO into investments. They manage their investments carefully, intelligently, and know that once you get lucky, reach a point where you're wealth is large enough that capital preservation becomes as important or more so than growth.

[pauldwyer]

Great vid, more people should definitely see it. What do you think about Ping An Insurance? Stable business with fintech growth potential?

[phaze]

This is something I've been looking for. What to look for good companies

[Holy_Frijole]

snippet from a MarketWatch article which seems like a gem = "Keep in mind that relatively new companies like CrowdStrike CRWD, +1.19% can have deceptively high P/E ratios because they are still reinvesting a lot into their own businesses, diverting cash away from earnings per share." = I'll have to question P/E's on face value from now on. Is their a stat for this already? A great video would be to talk about caveats for different evaluations types like "reinvesting may increase p/e ratios".

[mjmmak]

Great video Matthew! I’ve learn a lot again. Thnx

[Naijarianman]

These are great videos. Really helpful to new investors, I'm still relatively new to this investing but have learnt this the hard(and somewhat expensive) way. This will save a lot of people money

[samihassan]

I love the new format. Keep up the great work. Very valuable information

[lukelelay]

Like the educational iPad vids, definitely effective. Did a little story investing on BFI that I am not toooo proud of, they are releasing their 10k soon though so let’s see what that looks like before I decide to hold or not.

[rawbell]

I like the new format, it is like a moving / unlimited white board. Great prep, great value, thank you!