The Risks and Rewards of Investing | Phil Town

Before you can go about reducing risk and increasing reward, though, you first must understand what the risks and rewards are - and what you can do to alter them.

Either way you really need to learn this stuff yourself, so to help you I've included a FREE download of my PDF, The Three Greatest Stock Market Myths Ever Told! Click the link above.

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investing 101, how to invest, learn to invest, value investing, risky investing,

[calvinraab]

Great video. I think one of the biggest misconceptions people have about the stock market is that it is so risky and there is a big chance you will lose your money. Many people don't realize that you can manage your risk. You can also choose the level of risk you wish to have. Thank you for the video!

[jvnderhm]

Couldn't agree more! "Prices eventually rise and fall to match the value of the company" This is everything in understanding how to invest properly.

[bambangtj]

Thank you for your insights Phil. I have something in my mind when watching this video. Businesses usually have some period where their performance declines. To my knowledge, many companies are on sale when it happens. However, how could we determine that it is only a temporary slump?

[workwithnature]

Yes it is risky, but it is why one can make money in it. There are very many factors that can decide the short term outcome of your stocks. Therefore it is the best advise that you are giving, because you allow for the ability to be a long term investor, without loosing any sleep.

[BusterDarcy]

Great video as always, Phil. There’s a question that’s been nagging at me for a while, though. What do you get out of encouraging people to come for free to your three day seminars? You say in your webinar you’re not selling anything. What is there for you to gain by spending that much of your time and money just giving away free and valuable advice? At least with your YouTube videos there’s ad revenue, and it probably helps with book sales, but these seminars must cost you a lot to put off. I’d really appreciate it if you could shed some light there. Thanks as always for your videos!

[MrAknewton]

Thank you Mr Phil for the valuable info on stock market. I have invested in stock market knowing that it is risky. To answer the question, bottom line of investing in stock market is you don't make omlette without breaking a few eggs. I got returns after getting losses for a full quarter.

[tommy____]

Hi Phil,

I love your content this video actually came at the perfect time for me as I'm currently reading the Dhandho investor and I've started to work through the list of books you recommend.

I actually first subscribed to you and got up to date with your content once I got my new phone.

Finally, to awnser your question about risk I'd say the market is risky personally, but following people like Ben Graham and knowing the economy mitigate how exposed you are; also what keeps me out of the market is not having capital as I'm 17 and the area where I am in the UK is less developed for public transit any jobs I'd be good at are not common, do you have any advise for a job I could do as I'm trying to get my washtub build for the crash or be able to pay my way through university dependent on the how far stocks may go down, the UK's inflation and how much I have built on my watch and wishlist in my competence circle

[compound]

Hey Phil,
Loved the content, can you talk about Dividends, EPS, or about how to pick the right stock at the right time in your next video?

[nilbertpacheco]

I am struggling to learn things you mentioned. Thank you very much for making this video. It really inspired me. Please share help to me. Thank you very much

[ee.gg.]

Just had this lecture today at uni. Perfect timing

[FlaschDJ]

Thank you. It’s nice to watch a video where the presenter is not an idiot and has a vocabulary - as if he’s read something in his life. Thank you
Can you please post your 1, 5 and 10 year results against S&P after fees and costs?

[dennis]

Uncle Phil. How does the retail investor actually find quality companies? We are looking at the same glossy annual reports and quarterly financial statements everyone else has. If management is dishonest, those public statements can all be a pack of lies to some degree. It seems to me whenever a company crumbles (whilst the rest of the market is okay), is because of something nobody would of determined from their publicly available statements. This idiosyncratic risk has bit me so many times. Most recently in the mining and shale oil industries. I find I am much better off owning the market and putting my energies toward proper dynamic allocation between stocks, bonds and cash. I find it much easier to see the risks of the big macro picture than the individual micro risks in each underlying company. Going light in equities and heavy in bonds when the overall stock market is overvalued and vice versa has been the single most contributing factor to my financial success. I would love to hear how you address this issue.

[giacomobrambilla]

Hi Phil Town, tanks for your videos, you are inspiring me to become better at trading. Your contenents are well expressed and clear.

[zoefofo]

The stock market will always be risky but you have a responsibility to reduce the risk by doing your won due diligent. Do your own research. Learn. Understand. And then you'll make great decisions

[tsuyoshimiura]

Hi Phil! Here is a suggestion: could you please make a video about investing in commodities such as precious metals and they compared to mutual funds/stocks? Thanks

[kirilmihaylov]

basically buy when there is a crisis and prices are low...like Buffett did in 2008...and buy reputable companies with good product who sells well... that way you will save yourself a lot of trouble.... there is always is a risk in investing and many other things in life...do this and you will mitigate the risk substantially...

[branvay]

Just got done reading Rule #1, what a masterpiece one of the all time greats as far as books on investing for the long term.

[danielmark]

Got your audible ready and I’m currently waiting on the paper back that I’ve ordered for reference to the graphs and examples you talk about . 🏆🏆🏆

[mceduck]

Knowledge and experience lowers risk level in investing! Otherwise, you are 100% correct, it's just a gamble.

[therealdl]

I have a significant amount of liquidity and don’t know the right direction to invest. Currently 54 (single/no kids/homeowner) with various employer 401Ks plus a Roth. Low tolerance for risk since I’d like to retire in the next 10-12 years.