How to buy and sell stocks and make money
HOW TO MAKE EASY MONEY IN THE STOCK MARKET
Timecodes:
what's up grandmas guys here so after a
year of patiently waiting and getting
hundreds of comments dms emails letters
and smoke signals asking me how my stock
market investments are doing the time
has finally come to reveal exactly how
much money i made and i gotta admit it's
a lot more than what i expected like if
you thought the entire market being up
28 was nice think again because my
strategy is up over 41
with absolutely no work whatsoever and
we're gonna repeat the exact same
process again in 2022 to see just how
far we could take it the secret you
might ask well i had a monkey pick
stocks at random and believe it or not
it's fundamentally proven to work 96 of
the time so we need to talk about
exactly what's going on how a monkey was
able to pick the best performing stocks
precisely what i invested in the
strategy behind this and then finally
how you could use this information to
try to make as much money as possible
but before we go into this monkey
business and why buu has become a
champion of stocks it would help me out
tremendously if you go ape on that like
button by making it turn blue or if you
haven't already subscribed doing that
makes me go bananas all right monkey
jokes aside thank you guys so much and
also big thank you to public for
sponsoring this video but more on that
later so all of this started in december
of 2020 when i came across a quote from
the economist burton malkiel who said
that a blindfolded monkey throwing darts
at a newspaper's financial pages could
select a portfolio that would do just as
well as one carefully selected by
experts and that got me thinking
i should give it a shot well within a
few hours i was put in touch with the
fun-loving celebrity monkey boo whose
owner volunteered to help me on my quest
to make as much money as possible so
here's how we were able to make that
happen i found a website that lists the
top 1000 publicly traded companies in
the us and then i used a random number
generator to pick a number one through a
thousand that would correspond with the
ranking of each of those stocks on the
list i repeated that process 30 times so
i could randomly select the large enough
sample size for glue to pick from and
then with each of those 30 stocks
written down on a piece of paper boo
proceeded to hand select 10 of them
where i could invest 10 000 each and now
to my surprise one year later those 10
randomly picked stocks picked by a
monkey are doing better than the overall
index up over 40 percent versus the s ps
measly 28 and if you're curious which
stocks i bought how well they each did
and which ones he's gonna pick in 2022
here you go the first ford they're one
of the largest auto manufacturers in the
world they were the number one
best-selling automaker in the us
throughout 2021 and their new mustang
monkey is the number two best-selling
electric suv you might even see them as
hitaxi in new york second cerner
corporation they provide health
information technology devices and
hardware with more than 28 000 employees
around the world third align they
manufacture 3d digital scanners and the
invisalign braces used by dentists
fourth anel americas is a conglomerate
to the energy companies located in south
america however tax reforms and
shutdowns have led the company to fall
over 30 percent fifth are public
services they're one of the largest
waste management companies in the us
serving as undeniable proof that one
man's trash could be another's treasure
six we got the most hated company in
millennials blackrock they're an
investment corporation with now almost
10 trillion dollars under management
than a history of solid growth and
subscribing if you haven't done that
already seventh we've got ihs markets
which provides data and trade processing
for foreign exchange and loans eighth
invitation homes is the largest owner of
single-family rental properties in the
u.s owning approximately 80 000 homes
because they didn't buy avocado test and
overpriced coffee ninth tesla they
manufactured the most popular and
data-driven electric vehicles in
existence they were added to the s p 500
exactly a year ago and since then
they've reached a 1 trillion market cap
despite elon selling in 10th netflix one
of the top streaming platforms in
existence with over 207 million paid
subscribers worldwide even if mr beast
gets more views on youtube in 24 hours
than the original squid games got in a
week that gives me a total return of 41
in one year since december 21st 2020
which is higher than the 28 gain of the
s p 500. what's really weird about this
is that these returns are somewhat
normal for a monkey let me explain and
before i go into that i know what you're
probably thinking but graham how do you
know this isn't just random luck maybe
the monkey just happened to pick really
good stocks you have to do this again in
2022 and don't worry as you're about to
see monkey boo is picking another 10
stocks for 2022 and yeah maybe some of
it could be luck but when burton malkiel
originally made a statement that a
blindfolded monkey could do just as well
as some of the most well-respected hedge
fund managers out there his words were
closely studied in 1988 the wall street
journal simulated this experiment by
pretending to be a monkey throwing darts
at a random list of stocks and then
comparing that with a professional over
a six month period to see who ends up
making more money the experiment was
repeated over a hundred times throughout
14 years and surprisingly 40 of the time
the monkeys came out ahead more
profitable than the experts did and to
make matters even worse for the experts
they just barely managed to outperform
the dow jones industrial average despite
having every piece of stock picking
analysis and research available to them
another group of researchers also
repeated this exact same experiment from
1964 through 2010 and they found that
their monkey portfolio consistently beat
the stock market by an average of 1.7
percent a year 96 of the time and it
doesn't even stop there a goldfish's
stock picks were simulated over a
thousand times and beat the market by an
average of 14.5 percent over three years
there's also a cat who beat the market
by eight percent a monkey named adam who
beat jim cramer a chimpanzee who beat 94
of russian bankers and even a crypto
trading hamster who beat warren buffett
believe it or not there's actually a
formulated reason why animals are able
to get such a high return and it has
nothing to do with luck chance or a
secret world of headless chickens is
depicted in south park instead it has to
do with the strategy being used to pick
stocks that tend to do well consistently
over and over again and here's what they
discovered research conducted in 2013
found that by randomly selecting 30
stocks out of the top 1 000 companies
and buying them all in equal proportions
you're increasing the chances that such
a portfolio would contain smaller stocks
which have the potential for even higher
growth and because monkeys didn't get
emotional and panic sell the moment jim
cramer comes out with a spooky headline
that led to an outperformance of the
entire market year after year as proof
of this between 1980 and 2015 smaller
stocks returned 11.24 annual growth on
average while large stocks returned
eight percent so that just means when 30
stocks are picked at random while
investing an equal amount in each you're
more likely to include smaller stocks
which would boost the portfolio's return
when compared to an overall index and uh
oops voila you beat the market now even
though this sounds like the ideal way to
invest before i have boo pick another 10
stocks for 2022 you're probably
wondering well graham if it's really
that easy then why is it everybody doing
it i hate to be the bearer of bad news
but there's an answer to that too
although before we go into that since i
am talking about stocks it would only be
fair to offer you a completely free
stock worth all the way up to a thousand
dollars thanks to our sponsor of today's
video public hi my name is graham stefan
do you hate it when brokerages sell your
trades to market makers like hedge funds
are you tired of wondering if your
brokerage has your best interest in mind
have you been wishing for easy
cryptocurrency investing right from your
phone well thankfully public can help
no not that public this public
public.com right from the comfort of
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could rest well knowing that you're
getting the best pricing on your trades
plus they incorporate an optional social
aspect into the entire experience where
you could choose to share your
investments without giving advice
according to their legal compliance team
you could grow a following and you could
very nicely tell people why you think
they're wrong but wait there's more with
fractional investing you can now buy a
slice of your favorite companies for as
little as one dollar so gone are the
days of needing thousands of dollars to
buy a single stock just type in a dollar
amount that you want to invest in boom
done on top of that they also announced
a multitude of cryptocurrency options
free to choose from including but not
limited to bitcoin ethereum cardano
dogecoin solana luna avalanche and much
much more not to mention as a limited
time offer public wants to invest in you
by giving you a free stock worth all the
way up to a thousand dollars and use the
link down below in the description and
use the code graham when you sign up
that's it so use the link down below in
the description let me know which stock
you get and now let's get back to the
video alright so now that you got your
free stock in terms of why everyone is
not using animals for their investments
the reason is simple and that would be
risk even though smaller companies
outperformed the markets by 1.7 96 of
the time they also experienced
significantly more volatility meaning
just as much as they went up they also
went down for example if we compare the
top 1 000 growth companies with the top
2 000 value companies we could see that
nearly every price movement in the value
category is magnified by at least 20 to
50 percent so every peak is higher and
every drop is lower and risk is
something that every single investor
needs to consider when they think to
themselves how much money do they want
to make or potentially lose after all if
you didn't care about risk and you just
wanted the small chance to make a whole
bunch of money you would just go out and
buy a whole bunch of lottery tickets but
people don't do that because there's too
much risk that you would lose everything
the reality is with investing you have
to balance the amount of money that you
make with the amount of risk you're
willing to take and for most investors
taking the short-term volatility of
investing in 30 completely random stocks
for an average of a 1.7 percent higher
return doesn't generally beat the safety
of investing throughout the entire index
and earning a little bit less my monkey
portfolio is a perfect example of this
even though it's currently beating the s
p 500 by 13
in the event the market dropped it would
be that much worse in fact as you can
see throughout the year the top
performers weren't always on the top and
for a while several of them saw a rather
severe loss while the s p 500 gained
that's why it's interesting as this
experiment is and as fun as it is to
research and watch when you account for
both stability and risk the best
investment still tends to be throwing it
all in an index fund tracking the
overall market and then doing absolutely
nothing even though technically 96 of
the time you're gonna see a slightly
lower return you wind up paying that
extra little bit for the assurance that
your returns will be more stable the
drops will be smaller and you'll see
consistent growth over decades and not
just years but that's not going to stop
me from investing another hundred
thousand dollars to recreate this
experiment again in 2022. and you know
what that means we're going to be going
back to our monkey boo to see if he
could beat the market again for two
years in a row to start just like the
first time i'll use my random number
generator find out which ranking that
correlates to within the top 1000
companies gather those 30 different
options and then i could give all of
those to boo for him to pick at random
so without further ado feel free to
scroll back and slow down exactly those
stocks that were picked and now
here's boo and one year we could see who
came out the winner hedge funds the s p
500 or the genius stock picking monkey
boo because come on you can't say no to
that face grand stanford i want you to
pick out 10 winners again like he did
last year boo he's just looking around
there's one
fmd
oh boo's already picked number two sjm
jm smucker company eight more sir always
got my tyler technologies inc
he's being very selective this year
moscow court
photonics corporation
first american
financial court
costco wholesale corporation
lamb western holdings inc
aptar group inc
there it is williams
sonoma inc now for reference i invested
ten thousand dollars into each of these
ten companies for a total of one hundred
thousand dollars and from here on out we
could track their performance to see
just how well they do over the next year
oh and also don't forget to subscribe
because it's totally free and if you
want to follow exactly what these stock
picks do over the next year you may as
well click that button before you forget
now is the perfect time
before you forget
thank you guys so much i'm also going to
be linking booze information down below
in the description for anyone who wants
to follow his channel and don't forget
to claim your free stock down below in
the description when you sign up for
public so with that said you guys i
really appreciate you watching also feel
free to add me on instagram or on my
second channel the graham stefan show i
post there every single day i'm not
posting here so if you want to see a
brand new video from me every single day
make sure to add yourself to that and
also on my hungrybol app down below in
the description where you get a daily
newsletter and you can track all of your
favorite stocks with all the information
you ever will need so it's all right
there in the description that's free too
thank you guys so much for watching and
until next time
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