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Investing Is About To Change Forever
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Investing Is About To Change Forever

The Future of Investing

In this video, the speaker discusses how investing has changed over the past decade and what we can expect in the future. They explore how interest rates have affected the stock market and why investors should be prepared for a potentially less exciting market.

Investing in Recent Years

  • The stock market has been on an unstoppable rise for investors since 2009.
  • Interest rates set by central banks were virtually zero, which made borrowing money cheap and pushed people to invest.
  • Investors' expectations are high due to double-digit returns and individual companies crushing it.

What's Next for Investing?

  • Interest rates are starting to go up again, which could lead to a more normal time in the stock market.
  • However, investing is now easier than ever before, so it's unclear if "normal" exists or is constantly changing.
  • The speaker suggests that investing may become less exciting in the future as valuations come back down to earth.

Recent Market Events

  • Meme stocks crashed again and NFT values plummeted.
  • The banking sector nearly collapsed with issues at Silicon Valley Bank and Credit Suisse.

Overall, the speaker believes that investing may become less exciting in the future as interest rates rise and valuations come back down to earth. However, they acknowledge that investing is always changing and it's hard to predict what will happen next.

The Rise and Fall of Trading Platforms

This section discusses the rise and fall of trading platforms, such as Robinhood, which attracted millions of young first-time investors into the stock market by making trading easier than ever. At its peak, more than 20 million people were actively trading on a single platform.

Trading vs Investing

  • There is a big difference between trading and investing.
  • Trading is short-term and involves competing against someone else.
  • Investing is long-term and slow but can be more profitable in the long run.

Building Wealth in the Stock Market

  • The real way to build wealth in the stock market is by channeling your inner sloth.
  • You have to sit there, forget about it, and keep making investments into quality assets.
  • Most companies took between 16 and 30 years to turn their share price into a return of ten thousand percent if ever at all.

Lessons Learned

  • The best investors were inactive or dead.
  • Those who did the best invested in quality assets over time without trying to be smart or buying on dips.
  • It's important to remember that good times have to end eventually.

Book Recommendation

  • "100 Baggers" covers companies that have increased their share price by 100 times or more.
  • These companies are rare and take a long time to achieve this level of growth.
  • Turning your share price into a return of ten thousand percent takes both time and patience.

Principles of Investing

This section discusses the key principles of investing, including the importance of leaving investments for a long time and not interrupting compound interest unnecessarily. It also highlights the need to be able to ignore market fluctuations and focus on long-term returns.

Key Principles of Investing

  • Good returns require being in an investment at the right time and for a long period.
  • Emotional investors may sell during downturns, while boring investors who can ignore market fluctuations tend to win.
  • Compound interest only works when left alone for a long time.
  • The financial media is full of noise that distracts from finding good investments.
  • Stock prices move for all kinds of reasons, but businesses change more slowly over time.

Reacting to Global Events as Investors

This section emphasizes that it's not global events that matter but how we choose to react to them as investors. It also highlights how news headlines can be misleading and distract from finding good investments.

Reacting to Global Events

  • How we react as investors is more important than global events themselves.
  • News headlines often focus on extremes rather than providing useful information for investors.
  • Confirmation bias can lead us to believe our investment choices are better than they actually are.

Finding 100 Baggers

This section discusses what it takes to find 100 baggers - stocks that increase in value by 100 times or more. It emphasizes the need to avoid distractions and focus on finding good businesses with strong growth potential.

Finding 100 Baggers

  • Stock prices move for all kinds of reasons, but businesses change more slowly over time.
  • To find 100 baggers, we need to focus on finding good businesses with strong growth potential and avoid distractions.
Video description

Join My Investing Community on Discord: https://bit.ly/TobysCommunity This video looks at how the future of investing might be going back to normal with the end of low-interest rates, cheap money, and no more meme stocks. I look at the case as to whether moving forward, we should expect the stock market to be a bit more boring, and go back to our tried and tested investing strategies. Are we going back to boring, or is this just a new normal? Enjoy. *//Investing Apps and FREE Shares* 💸 - InvestEngine - Get £25 Free once you deposit £100 + FREE ISA (T&Cs Apply)* https://investengine.pxf.io/x9YoO1 *+£100 Bonus - Time Limited Until end of April 2023* 💸 - Trading 212 https://www.trading212.com/join/TOBY Get a free fractional share up to £100. Use Code: TOBY in your app if you do not receive your free share. Terms Apply. *+1% cashback on all new ISAs - time limited until end of April 2023* 💸 - Lightyear - Free Google or Tesla Stock (Deposit £50) https://bit.ly/TobyNewbatt-LightYear *//My Favourite Credit Card for Points* 💸 - American Express Gold Rewards Card - Get 30,000 Points - £0 First Year https://bit.ly/Toby-Amex *//How I Make My Videos* 🔊 - Sounds and Music - Epidemic Sound - Free Trial Here https://bit.ly/3lTPxaA Disclaimer: This information is not investment advice. Do your own research. When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results. *InvestEngine (UK) Limited is Authorised and Regulated by the Financial Conduct Authority (FRN: 801128) Webull: Introductory zero commission promotion for 90 days from the date of successful account opening. Offered at Webull's discretion – refer to the Pricing page for fees applicable once the intro period ended and Terms and Conditions for full details. Valid in conjunction with other applicable welcome promotions subject to conditions.