HN Theater @HNTheaterMonth

This video helps people avoid beginner mistakes in stock investment. I explain the best way to make money in stocks and avoid a number of classic errors people make.


My Calculus video:

https://www.youtube.com/watch?v=KyUPwfBLjEQ


Further reading at my Website:

https://arachnoid.com/fire_your_stockbroker


https://arachnoid.com/equities_myths

https://arachnoid.com/finance

The same points made by others:

https://www.investopedia.com/ask/answers/12/beating-the-market.asp

"Highly regarded economists have shown that a portfolio of randomly chosen stocks can perform as well as a carefully assembled one."

https://www.investopedia.com/investing-in-index-funds-4771002

"The most obvious advantage of index funds is that they have consistently beaten other types of funds in terms of total return."

https://pocketsense.com/percentage-people-successful-stock-market-2049.html

"Index funds are meant to deliver returns that are as good as the broader markets for fees that are a fraction of fees charged by active fund managers, who frequently buy and sell securities."


Please visit my Website for many more articles and resources: https://arachnoid.com/

Thanks for watching, please like and subscribe.

Index:

00:00 : Introduction
00:10 : Online Retail Brokerages
00:30 : Small Portfolio Volatility
00:48 : Compound Interest
01:06 : Population Growth Example
03:04 : Inheritance Example / Managing an Annuity
04:49 : Famous F.Scott Fitzgerald / Ernest Hemingway non-conversation
05:07 : Investment Options
05:53 : Stock Market Discussion
06:53 : Comparison of Managed Account versus Index Fund
08:28 : Evaluating Broker Claims
08:33 : Discussion of the WSJ Dartboard Contest
09:23 : Discussion of broker claims of investment expertise
10:41 : Effect of compound interest on broker fees
12:15 : Pitfalls of a self-managed, actively traded account
13:15 : Discussion of online retail brokerage practices and SEC investigations
13:58 : Motive for investing: excitement or profits?
14:18 : Market investment as horticulture, emphasis on patience
14:38 : Market unpredictability
15:45 : Brokers who claim they can predict the market
16:10 : Unethical brokers who use shady methods
16:23 : Miracle Man : a convincing scam
16:35 : Detailed description of the scam
17:50 : Reasons for Skepticism
19:03 : The Reveal: How Miracle Man works
20:12 : Market Principles
20:47 : Choosing an Index Fund
21:21 : Example Index Fund
22:43 : Comparison of Index Fund with the S&P 500 Index
23:07 : More discussion of online brokerages and their legal problems
23:31 : Extra Topic: Credit Cards
24:54 : Joke Time
25:36 : Conclusion, credits