This week’s episode features Brian Feroldi. Brian is a financial educator, author, speaker, creator, and YouTuber. Brian began investing in 2004. He had no idea what he was doing at first, but as his experience and knowledge of the stock market developed, his returns improved considerably. He enjoys assisting others in making better financial decisions, particularly with regard to investments. He joined us today to talk about his book, ‘Why Does the Stock Market Go Up?: Everything You Should Have Been Taught About Investing in School, But Weren't.’
According to Brian, the most powerful time to start investing is when you are young. The more time that you have on your side, the more powerful the dollars that you are putting into the market. Brian shares the common investing mistakes people make and how to avoid making those mistakes.
We explore the benefits and potential pitfalls of taking a company public and investing in mutual funds. Brian also dives into the history of the Dow Jones Industrial Average and the creation of the S&P 500. Additionally, Brian discusses the importance of finding a good financial advisor and the various investment accounts available. The episode ends with an explanation of how bid and ask prices work in the stock market and the impact of market fluctuations. Whether you're a seasoned investor or just starting out, this episode offers valuable insights into the world of finance.
[02.54] US stock market – Starting the conversation, Brian explains why he addresses the US stock market as the greatest wealth-creation machine of all time in his book.
[10.29] Selling ownership – We talk about how a corporation can raise money from investors by selling ownership in itself.
[16.03] New York Stock Exchange - The largest stock market exchange in the world today.
[23.15] IPO – Brian defines what an IPO is and how it interfaces with the stock market.
[30.21] P/E ratio – Brian defines the Price to Earnings ratio and the macroeconomic factors that resulted in a high or low ratio in different time periods.
[38.05] Benjamin Graham – Benjamin Graham invented the concept of value investing, influenced Warren Buffett
[43.00] Compounding - The compounding of an investment leads to massive gains in wealth over time.
[50.49] Mutual funds – Brian explains the reasons for the underperformance of mutual funds.
[59.46] Financial advisor – We talk about the things people need to be looking out for if they are going to use a financial advisor.
Resources
Connect with Brian
Website - brianferoldi.com/
LinkedIn - linkedin.com/in/brianferoldi/
Instagram - instagram.com/brianferoldi/
YouTube - https://www.youtube.com/@BrianFeroldiYT
Twitter - twitter.com/BrianFeroldi
Book by Brian
Why Does The Stock Market Go Up?: Everything You Should Have Been Taught About Investing In School, But Weren't
Book by Robert T. Kiyosaki
Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
Book by Terry Smith
Investing for Growth: How to make money by only buying the best companies in the world – An anthology of investment writing
