Hey guys, it's sasha investing can be super simple and very passive. You can go and put your money via a monthly deposit into an investment platform of your choice and benefit from an eight percent return per year from just having it automatically go into the s. P. 500, without really having to do much, history will tell you that almost every active investor will fail at beating the market over time, because regular schmucks, like me and big active fund managers all fail to outperform the market in the long run.

And yet there are tricks that you can employ in your investing strategy if you do try to go down the route of beating the s p 500, for example, that can have a significant impact on your returns. Some of these may be more obvious than others, but these five tricks can have a really big effect, so let me go through them, but just before i do a brief disclaimer, i am not claiming or guaranteeing any specific benefits or any returns in this video. This is an educational, video and an informational video only i am not a financial advisor. I can't provide financial advice to you and if you do need financial advice, please make sure you go and seek the help of a suitably qualified professional.

This is all just my personal opinion, based on my personal experience. That's it nothing more anyway. The first trick that i'm going to talk about is something that i call elective de buying. Now i am invested in a number of different companies across my investment portfolio and i have a fixed allocation strategy that i try to follow as close as i can, but because i'm invested in this large number of different companies, that means that at any one time There is one or more of those companies that are having a big dip in their price, for whatever reason, i put money into my investments on a relatively regular basis, and i will mostly distribute this money between the investments i already have, rather than continuously adding through New companies, although i do do that from time to time, however, rather than doing the usual approach of just taking the money coming in and automatically distributing it according to this fixed allocation, i do something a little bit different.

I will first go and look at these particular companies that are suffering from dips in my portfolio as i'm filming this video companies, including tesla cciv, amd pinterest, shopify, take two twilio fiverr and others in my portfolio. I'm invested in all of these are significantly down following a recent tech, sell-off after reviewing the fundamentals and looking at what my long-term views on the performance of these companies are. My long-term opinion on all of these hasn't changed, not materially. In any case, it rarely does because a lot of the share price fluctuations will depend on macro variables, market trends and short-term new cycles.

So when i invest my money, i always try to put it into the companies that are currently disproportionately low at the point at which i'm investing the truth is all companies will have fluctuations even the best most stable ones. So one month i might be investing in apple when their share price is particularly low for some reason and the next month. Maybe apple's gone up, but tesla is down, which is literally the case right now and i might be putting more money into tesla instead, and this way i'm able to go and buy shares at often a 20 discount versus what the average price would be. If i was investing across all the different companies in every single month, giving me an amazing great upside in the long term - and this is a relatively simple strategy - the next investing trick is a general rule that i use in picking the companies that i choose to Go and invest my money in.

I call it the 10 squared rule. If i invest in specific companies, i only want to do it if there is a potential for a huge upside. I want to target a return of maybe 15 or greater per year on average, and this sounds ridiculous. But if i wanted to get a lower return, i could easily just go and get an eight to nine percent, or maybe slightly higher, from literally just investing in the s p 500, which is a super passive and a super consistent way of investing in the long Term, so why would i bother picking specific companies where i don't expect to get a much larger upside by investing in that company versus just having my money in the market? What's the point of investing in a company that might only be expected to get a five percent return so when picking the companies to invest in i'm looking for two criteria before i do any proper assessment or looking their fundamentals number one: could the company in theory Grow to ten times its current size and number two could the industry within which the company operates in theory grow to ten times its size? Now i'm not saying, i believe that the companies i invest in will satisfy all of these, but the question that i want to answer is: could they in theory, so take a big bank like barclays, for example, a super popular staple share that a lot of pension Funds, for example, hold go and look at their business model.

Can barclays grow to be 10 times their current size? I very much doubt it. It would mean holding a hundred percent of all uk bank accounts, for example, it would mean owning more than 100 of some other personal finance products and operating in 400 countries around the world. That's roughly double the actual total number of countries in the world. Now.

Can banking, as an industry grow to 10 times its current size? Well, not really, in my opinion, because in developed countries it is already a fully saturated industry and in developing countries it's really getting there as well. So what is the best case scenario if i invest in berkeley's well, for me, the best case is not particularly exciting. However, when i look at tesla, where i hold a lot of money, for example, the answer to the question is: could tesla theoretically grow to 10 times their current size? Well sure they would need to produce 5 million cars per year? That's less than ford and toyota. Currently produced so it's definitely something that's possible.

Will they? I don't know, that's not the question that i'm asking here next: can their particular market grow by 10 times? Well again, in my view, the electric vehicle market is a completely new type of transportation market. I think it is a very different thing to producing ice cars, and some people will probably argue the same thing when we're moving from horse and carriage over to cars and moving from like this is a new type of industry. In my opinion - and i certainly think that it can grow because currently it is forming a negligible fraction of a percent of the total global transportation market. These things could, in theory, replace things like buses, trains and other forms of public transport.

Anyway, the same thing goes for their energy storage business, their battery business, their solar business. So in general i want a company that i invest in to take at least one of those two criteria. If they take both, then they fit into my ten square definition and that's what gets me really excited next up something that people often overlook. It is a question of minimizing costs when you're doing your investing.

This might seem a material and a lot of people certainly think that it is, you know, spending 12 pounds per trade when you're, making large trades or a small forex fee here, and then some very small and not point two percent annual management fee. It doesn't really matter right, but look at it as a proportion of your total gain if you pay one percent in the sum of management and various kinds of transaction fees per year - and your gain is, let's say eight percent per year, which is the market rate You'll have given away 12 and a half percent of your gain in fees, so the gain is the amount that you actually earn. So when you begin looking at fees as a proportion of that suddenly becomes a completely different thing, it is critical to minimize the cost of your investments as much as possible, paying one percent versus not point. One percent for the privilege of investing is a huge difference to your returns and when that compounds over time, you will notice an immense difference in how much money you make in the long term.

There are platforms out there that offer extremely cheap or even completely free ways to invest. I have links in my description to platforms like trading 212 and free trades. That will let you create an account deposit money and invest your money in the s p. 500.

Through buying vusa for nothing completely free, that's cheaper than buying vusa on the vanguard platform itself, which is incredible because vusa is a vanguard fund. Now, if you do use my link in the description below you will get a free share when you open your account, which you won't do, if you just go direct and i will get free share as well. So, thank you so much if you are going to go ahead and do that anyway. Let's move on next is a commonly overlooked point, which is investing in small cap companies.

Many people completely ignore these companies because they are not big they're, not well known they're, not in the s p 500, and they typically have well by definition, lower market caps. But the interesting thing is these companies, and things like the russell 2000 index will, on average, outperform the s p 500 by an average about two percent per year, and even more interesting is the fact that these small companies will typically significantly outperform the s p 500. At times of uneconomic uncertainty, every time there is a big financial crisis, a crash or a big market fluctuations, the small cap stocks will surge ahead by a huge margin. So when the stock market has been going up for a long time and is maybe at somewhere near the peak potentially - and maybe there is a drop of some sort expected on the horizon, this is definitely an interesting thing to just keep at the forefront of your Mind another critical point to think about when trying to improve your investing performance is tax and many people will completely ignore this point to their peril.

In the uk you can earn capital gains of up to twelve thousand three hundred pounds without having to pay any capital gains tax and two thousand pounds in dividends without having to pay any dividend tax. So it doesn't really matter where you invest. If you're not investing a lot of money right, you're not going to get that kind of return. Surely, but what, if you keep investing for the next 10 years, and what, if some of your investments do particularly well? What if you go and put that money in there and then you need to withdraw it all in one? Go and suddenly you come to a point where you realize you're going to have to pay a whole lot of tax.

Uk investors have access to stocks and shares isa accounts which allow you to put in up to 20 000 pounds per year and you'll never have to pay any capital gains tax or dividend tax on your investments, no matter how much they grow in the us. You have ira accounts and there are similar schemes in other countries as well. So, if you're watching from one of these other countries make sure you go and check out which particular types of tax privileged accounts exist there, even if you invest more than the tax free limit, there are a lot of tricks that you can employ to reduce your Tax liability or eliminate it completely check out my video up here, i'm going to put in the description below where i list some of these tricks. That can be beneficial as well.

Do not ignore the tax question because you can come to regret it later when you're. Finding out you're gon na have to pay 20 or even higher, depending on the time in the country uh when you are having to go and cash in your investments. I hope you guys found this useful. If you have, please make sure you remember to hit the like button for youtube algorithm.

Thank you so much for watching. I really really appreciate it and, as always i'll see you guys later, you.