Ep 191: Buying Stock - Smart Strategies for Investing - More Knowledge, More Wealth

  📍 📍 Good day. This is Gabriel Shane, certified financial planner and your host of More Knowledge, more Wealth here on every weekend, talking about all important topics of personal finance. My goal is to give you the knowledge you need to increase your wealth Now to the listener, you can always reach out to myself or 📍 anyone of my colleagues here at Falcon Wealth Planning.

Our phone number is (855) 963-2526. That's 8 5 5 96 Falcon like the Bird, or visit our website@falconwealthplanning.com. That's falcon wp.com for short. Or if you have a question, you wanna play it on air or just wanna send in the question, go ahead and email to radio falcon wp.com. That's Radio Falcon.

wp.com folks, I'm the president of Falcon Wealth Planning. We are a fee only non-commissioned true fiduciary, which means a hundred percent of the time we have to do what's in your best interest. Where we talk about all important topics of personal finance. The fact is we go over everything that involves a dollar sign, doesn't matter.

What do you wanna talk about? Investments, taxes, estate planning, insurance, renting, buying, owning, leasing, folks, you name it. Anything involves a dollar sign. We'd love to help. This is why we're offering a free financial assessment really to help relate this show to your specific situation where we're giving one to two hours, one to two meetings of our time.

Folks, at no cost to you, give us a call. We got offices all over. We'd love to help. The headquarters is here in Southern California. Our phone number is eight five five. 9 6 3 25 26. That's 8 5 5 96 Falcon. I like the bird where we can help put together a personal assessment for you yet again to just relate what we're doing here to your specific situation because I received a message over the weekend from Alex.

Alex said. I saw Apple in the news last week and was looking about buying their stock. What are your thoughts? So they're looking to buy Apple stock. Okay, so here's the thing. Why are they talking about, uh, the, the news that came out earlier last week came out Monday. Uh, June 5th, to be exact, uh, is their VR headset.

They're talking about all these new fancy things. Now, it's a big event. Remember Steve Jobs going on the table and talking about the iPhone, this phone, this little computer in a phone that's gonna change your life, and boy did it. Right Now, you see everybody's nose stuck at the screen because that's all people do is either text or social media and do everything on their phone.

Phone. Phone. It's sad actually. I have to stop myself sometimes when I'm at work, uh, at home and still working where I feel bad with my son. My daughter's saying, dad, dad, please, let's go play dad, dad. And after two times I'm like, oh my gosh, what am I doing? Cuz work will never stop. And now it's even more like accurate than ever.

Work will never stop. Because it's always stuck around on your phone. So what's my point to you is that this was a revolutionary product. Now this person is thinking this VR headset may be the same thing. I'm like, do you know how much this thing is costs? You know, obviously this is an email, so it's $3,500.

Not everybody can afford a $3,500 VR headset and the state, my point is this, before the news came out, apple on June 5th was up 2%, over 2%. Prior to that happening, when the news came out, it dropped almost 1% a three points wing with the news of this VR headset. I don't know what they didn't like. There was talks if that's too expensive, their talking, it's not as great as it sounds.

There's talks of a lot of different things that people don't like. Evidently, wall Street didn't like it. Why? Because the stock market and the stock price job. What's my point to you? Is the greatest company in the world, maybe not the greatest, let's say the biggest company in the world. Of Apple today may not be the best or biggest company tomorrow.

What's happening now is based on, now there could be companies like, uh, Google, by the way, Facebook by the way, that could have technology that can put 'em outta business. Heck, this chat, G B T, artificial intelligence machine learning is putting Google some analysts that think Google got out of business.

Some folks, I'm not saying go buy Apple, go sell Google, or vice versa. Sell Apple and buy Google. I'm not saying any of that. I'm saying things are rapidly changing at such fast paces. Now you don't wanna try to outsmart anybody or anything. What you need to do is invest in everything because news is Everly coming out.

It's coming out consistently. People made a lot of money with Apple people, made a lot of money with Amazon, with Tesla, with a lot of these tech companies. My point is saying something just very, very simple is everything is great until it's not great, and there's always gonna be something that's going out.

Grow it around. And heck, you look, 20 plus years ago, GE was one of the best and biggest companies in the world. They were invested in so many different things. There were a mutual fund in itself. And now look, they've dropped 10 x, you get what I'm saying? And there's multiple company like Sears catalogs, how are they doing?

How's JCPenney? Right. And right now there are issues with just understanding that things change. Right. Robinson's May, Washington Mutual, Lehman Brothers, bear Stearns Radio Shack. I felt bad. I used to always go on Radio Shack with questions. Now they're outta business. The Amazons of the world, so Walmarts of the world took the little toy stores outta business.

I used to take my kids to. Now I have to take 'em to a Target or Walmart just to see toys if they're behaving. Of course, my point is simple folks. The world is changing. And I know you said you wouldn't, it, it wouldn't change with you. I know you said that you wouldn't, but you know what? If you have a cell phone, you've adapted.

You get what I'm saying? People are now driving electric cars. My father-in-law, almost 70, bought a Tesla. I did not think that was possible. So people change, things change. By the way, folks, if you're joining me, this is Gabriel Shaheen, certified financial Planner and you're host of More Knowledge, more and Wealth here and every weekend talking about all important topics of personal finance.

And today we're just talking about a question that I received about the, uh, question of Apple as a goodbye. Well, you know what? Everything is a goodbye. Until it's not a goodbye. When you take a look at what fundamentals you're, you look at the fundamentals of a company if they're profitable or not, that can be a determination.

Well, you know what? Apple, when it was to try to get a dollar a share, wasn't profitable. It was losing billions of dollars back 20 plus years ago. Now look at 'em. So it can't be that. What about technical analysis? Taking a look at what people are doing, the momentum of a stock, looking at the moving averages, the mock these, the sarcastics, all these things.

Well, what else can you look at? Well, maybe you look at quantitative analysis, aggregating analysis, all these different things to analyze what could be a good purchase of an investment. Well, our stock, my point to you as simple folks, these are all different ways to analyze a company, and this is why there's so many times where you turn on the channel and it'll say, bye bye bye.

And somebody else will say, sell. Sell Sal. It's extremely difficult to find a true representation of when is good to buy this second, this now, today, and then tomorrow. Because how many times did this happen? You go to a cocktail party and people are saying, Hey, you should buy this stock. Oh man, this is gonna be a great one.

And they're, they're, they're holding this attention in this cocktail party. This person sounds really smart. And then you're like, you know what? I'm gonna buy this company. And then you see him the next holiday party and you're like, man, the investment he told me to buy is down 90%. And the person looks at you.

Oh, you still have that? I sold those ages ago, months ago. Have you ever had that happen to you? My point is, stop trying to outrace something that's unbeatable. You are not able, nor anybody is able to time markets and choose individual stock on a consistent basis. Nobody's able to do it. So if nobody in the history of an investment world, including Warren Buffet, has ever been able to time markets and choose individual stock.

They can't even beat the underlying index. So this case, the s and p 500, you can't beat them and then join them. That's my recommendation and that's why even Warren Buffet himself when he does his million dollar bet with a hedge fund manager, bet's not his Berkshire Hathaway fund, but he bets the s and p 500 and see how Berkshire Pathways done in the past 10 to 20 years versus s P 500.

They have significantly underperformed. And now speaking of Apple, 40% of all Berkshire Hathaway is apple, which oh, by the way, he admits he still doesn't even fully understand which he's breaking his own rules. You heard some people say rules are meant to be broken. Ain't that the truth with Mr. Warren Buffet?

So yet again, I'm not saying by Apple because what's good today may not be good tomorrow. And with that being said, this is why it's important to be globally diversified, cuz you own all companies. You own the Apples of Tomorrow, the Amazons of tomorrow, and the Teslas of tomorrow. You're owning that through globally diversified portfolios and you're taking and removing the risk factor of the United States and the political risk that's out there.

And with international companies that has their own version of political risk. You're ignoring those. You're not participating in those, and you're taking advantage of growth in not just US markets, but world markets, global markets, and emerging markets. See, what people don't understand is when they're investing in s P 500, 25% of their investment are just in five stocks.

Then Apple, Amazon, Microsoft, Google, and Nvidia. Now, Nvidia, some used to say it was Netflix. They used to call 'em Fang Stock. So the idea is that you have to take a look at your situation, folks. You can't just hear what the person has to say at the cocktail party. You can't just see what's on tv, where it's getting a majority of the news, talking about it's gonna go good or bad with Apples new product launch that they may have because what was good yesterday may not be good today.

And guess what? Some people get sick of it. Think of your favorite dish 10 years ago. Think of what you hated to eat 10 to 20 years ago, which you now like to eat today. Whether it's for health reasons or just your taste buds have changed. People in general change. And with that being said, there is no stability in an individual company, in stock, in the stock market.

That's why we recommend stay globally diversified folks. There is no other answer behind it. This is what some of the largest global wealth does, is put their money where it grows consistently. Stock markets, it's 1926, has grown on average 10%. A year returns, which is a doubling of money of almost every seven years.

You may look at your situation now in your fifties and see you have quarter million dollars. How am I gonna do it? Well, for doubles every seven years and you're contributed to the money, you could have $2 million less than 20 years by 67 years old. You get what I'm saying? This is where people fail. If you need help with this, we are offering a free financial assessment to help relate this show to your specific situation.

Folks, we would love to help. Give us a call. Our phone number is (855) 963-2526. That's 8 5 5 96. Falcon like the bird where we can help. Answer the questions that you may have, and this is considered an investment in yourself. And by the way, we are offering it for free, one or two meetings, one to two hours at no cost to answer these questions that we are talking about right now.

And this is yet again, you're investing the time in yourself. And when we come back, we're gonna talk about necessary investments that you have done and what you should continue to do. In yourself that other people are not doing and live an unhealthy life, whether it's financially, physically, emotionally, whatever the case is.

So we'll be right back after a few words. 📍 📍

Welcome back folks. This is Gabriel Sheen, certified financial planner and your host, more Knowledge, more Wealth. You're on every weekend talking about all important topics of personal finance, and today we are just talking about the simple idea, simple concept. Right now just. Really just big picture of the markets and a lot of these companies, how they grew to where they are today to be a multi-billion dollar, multi-trillion dollar company.

And why individuals, their goal is to be multi-millionaires, God willing. Now, when I say that, technically, if you only spend 1000 a month and bring in 2000 a month, you're the richest person in the room. You get what I'm saying? You spend less than what you bring in. That is my definition to being the richest person in the room.

It's financial stability. But if you look yet again, taking a step back, most companies achieve success by just reinvesting in themselves, taking their process, uh, profits and reinvesting in their company to reinvest into new research and development, new products, cheaper products, higher quality products.

This is how companies sell something for $1 to a billion people. Uh, if you wanna know how to become a billionaire, sell one thing to 1 billion people. That's how you do it. So let's now take it a step further. Let's look at you. What have you done? What could you do to reinvest in yourself? And I see this quite often.

I like to start with business owners, cuz business owners get it right. They work their rears off. Some would say they're crazy. They make less in the first few years of life, make a lot less. And they work more hours than they did historically if they were just working for somebody else. So they get it reinvest in their company until it gets to a point where it can be profitable and they start earning financial rewards.

This is where they start to make, and they're controlling their own income. So in a point of in business owner, they can reinvest in that business until they become much more profitable. Now people do this without even realizing. Folks, you reinvest in education, right? You invested yourself through education, whether you went to high school, whether you went to college, whether you got your master's, doctorate degrees, whatever the case is, you had to spend money or if nothing else, opportunity cost.

Okay? Businesses do this all the time. The profits they make, they could kick it out in a dividend, but what they do, they reinvest it. To make bigger and better products like Apple, instead of making the personal computer and them inventing the mouse, they created the tablet, an iPhone, and so on and so forth.

So in a situation like this where people have done this with education, right, you're not working, which means you're not making money, and number two, you're arguably spending money for an education to help make more money long term. You have to run that analysis. Another thing is a car. You have to invest and purchase a car to take you from point A to point B because that point B might be 50 miles away every day for work that instead of getting paid $50, or excuse me, $50,000 a year, you might be able to make $500,000 a year because that plays 50 miles away.

Is able to appreciate you. People invest in a car to be able to get them to expand their reach. Another thing is marriage is an investment, I'm sorry, Sophia. I'm gonna say it. Marriage is an investment. You have to spend money, you have to spend time, and that's the thing. An investment is not only your.

Money, it's time. The opportunity time working is an investment because you're taking time away from your family to hopefully make money to enjoy better memories with your family. Help invest in your kids is something else to make them successful so you don't have to support them long term. These are extremely important aspects of an investment within your family can give you happier.

Longer memories. These are the things where some people care about legacy planning because of that. My point is this, everything you like have an opportunity cost. I went, I had a couple sitting across the table from me making hundreds of thousand dollars every year and they said, I wanna retire with 10 million.

It's like, where did you come up with that number? You spend only 7,000 a month. Why do you need 10 million? I want 10 million. That's what I want. And I made it very clear to them, does it, is it the quality? Of your life or the quantity of having 10 million. And I give him an example. If you wanna sell your house, your beautiful house, your four bedroom, two bath, big home with two guard garage, and you wanna go and get a one bedroom studio in Compton, California.

You get what I'm saying? Life has balance. You can't look at everything in life saying, I don't wanna spend a thousand dollars. Cuz then you start thinking, well, Gabriel said I doubled my money every seven years and 30 years from now it could be X amount of dollars. No, don't do that. You're gonna drive yourself crazy.

You're never gonna spend money. You're gonna be a hoarder of money and live a terrible, miserable life. Life is. Balance and I would challenge you to take a look for yourself and find out what that balance is. And I'll tell you this, once you know how much you need to save and how much you need to earn on your money and not trying to hit home runs by trying to get invest in cryptocurrency and NFTs and all this other crap that's out there in the industry, that's oh, by the way, unregulated.

Once you realize that, that's when you can really start enjoying life a little bit more. This is when you know that, Hey, I just need to spend, I'm gonna be extreme here. I, excuse me, I need to save 5,000 a month, 60,000 a year. Anything over that, you could do whatever you want with. Now, a lot of you're saying, oh my gosh, 60,000 a year.

Are you kidding me? I don't even make 60,000 a year. I get it. I'm making a point. If all you need to do is save 600 a month, The rest, you could do whatever you want with. That's the right type of planning, folks, that's the recommendation that I give to you. We are offering a free financial assessment to try to get that answer for you folks to see what is your number that you need to have financial success and financial security, and to build out a plan where you are able to do the right.

Things to may save in the right spots to make sure you're taking advantage of the right investments that are available to you that are not taking unnecessary risk. That's not high fees, high cost, high commission. By making sure you're taking and getting that target rate of return. That's you need. The stock market averages 10% a year.

That doesn't mean you need to take as much risk as the stock market. The stock market lost over 20% last year. You get what I'm saying? During covid lost 40%. Same with 2008. Heck, 2000 and 2009, stock market lost 10% over 10 years. My point to you is we are able to help folks. We're offering a free financial assessment that offers one to two meetings, one to two hours of our time, folks at no cost.

Give us a call. We'd love to help. Our phone number is (855) 963-2526. That's 8 5 5 96 Falcon like the bird, where we can help answer the questions that you have with one to two meetings, one to two hours at no cost. By the way, folks, if you're just joining me, this is Gabriel Sheen, certified financial Planner and your host of More Knowledge From Our Wealth here on every weekend.

Talk about all important topics of personal finance. And it's crazy how some people are just so gun shy of talking about money. I mean, there was a recent study that said parents are more comfortable talking to their kids about sex than they are with money. That's crazy to believe that. And some of you may say, oh, absolutely.

It's uncomfortable talking about money. I would rather talk about things that I know better. And here's the thing, you don't want financial illiteracy with. This country has a very high level of financial illiteracy. You could tell with the student loans, you could tell with the high credit cards, you could tell, with the low savings, you could tell with the deficiencies and the lack of credit scores that are having in this country.

And so my comment to you is, Financial literacy is the key. We heard this. We remember, we are raised with knowledge is power, and my comment to you is, if nothing else, you could take a look and gather as much information and knowledge you need. At our Falcon Wealth Planning goal to our knowledge center, we have over 50 videos.

Those videos have gotten accumulative of. Almost a million views on YouTube alone, folks, and we recommend taking advantage. They can answer some simple questions that you may have, whether it's on social security, whether it's a difference of an IRA and a Roth, whether it's a tax strategy for a business owner, whatever the case is, go to the knowledge center and they can answer those questions for you folks, because I just see so many times people have a question with their situation.

What do they do with their 401k? Now I'm retiring. What are the things I should look at? Can I retire? Do I have enough money? These are the sad things. That should be something you should know. Your employer should offer it to you. And we've had an initiative where we are actually offering. Hey, uh, we're talking to your HR rep and offering a free seminar inside your employer where we're able to educate on what you guys should be doing.

It's an hour, it's a lunch and learn, and we're able to tell you about what, avoiding those high pitfalls, uh, people trying to sell you insurance products or people trying to just wanna manage your money. There's a lot of firms out there that say they're financial planning firms, but at the end of the day, they're just trying to manage your money.

They say they're a, a financial planning firm, but they're an investment management firm that Oh, just so happens to do. Planning here at Talk Wealth Planning. We are a full on financial planning firm. Well, by the way, that just so happens to also manage money. So it's the opposite, right? They manage money and say they do planning, we do planning and actually do investment management, and we do a great job of it.

So much so RA Intel. This past week we went to Boston, uh, send another advisor, Nikki Amora. We went there and we were honored. In two categories, rising Star and also Advisor of the Year. And they were looking at us because of just the tremendous work that we've done. So I thank you to RA Intel. That was a fantastic event that they hosted over in Boston.

It's the second year in a row. We've been nominated and we consistently get nominated cuz of the high quality we do, cuz yet again, this industry, all they care about is selling you. They wanna take advantage of you, they wanna manage your money, they wanna stick you in a product. And have you stuck in that product for years to come?

No. No, no. Here at Falcon Wealth Planning, we sell brain. We don't sell product. We tell you what you should do, and if you want us to do it for you, we'll charge for that. And we're transparent. Other firms don't even tell you what they charge folks. Part of being a fee only financial planning firm is we can only get charged.

We can only get paid from you other places other firms get paid from. Third parties that you never even know that you're paying. Why are we cheaper and much more economical? Because you don't have to pay the firm. You don't have to pay the advisor, and you don't have to pay the fund company. Here I'm talking about you only pay us.

You pay us directly, and that's why we're offering one to two meetings at no cost, and we're not the type of firm that's gonna hold onto the recommendation. Say, oh, we found so many great things to share with you, but we're not gonna share any of 'em until you hire us. No, no, no. We're gonna tell you everything and everything you need to do.

That's what makes us special folks, is we are extremely transparent. We're one of the good people in this industry. We take pride in that and that's why we grow ridiculously off referrals. That's why we have almost 200 Google reviews of five stars or more because, and those are fantastic commentary. You read some of these, it's life-changing events that happen and we take pride of that.

  📍 Folks, if you want help, give us a call. We would love to help. Our phone number is eight five five nine six three twenty five. 26. That's 8 5 5 96. Falcon like the bird, or visit our website at falconwealthplanning.com. That's falcon wp.com. For sure. Folks, that was a fast, fast show. I wanna thank you for tuning in with us this weekend.

You can always reach 'em out to myself or any one of my colleagues here at Falcon Wealth Planning. Our phone number is (855) 963-2526. That's 8 5 5 96 Falcon like the Bird, or visit our website at falconwealthplanning.com. That's falcon wp.com. For sure, and if you have a question you wanna play on the radio show, feel free to send it over to radio falcon wp.com.

That's radio falcon wp.com. You can either email the question or you can record yourself an audio on your phone and we'll play it on air. Folks, thank folks. I wanna thank you for tuning in with us. I wanna wish you a great week. Have a great weekend and God bless.