Hey guys it's sasha today is another day when the stock market runs around in circles, aimlessly waving hands in the air in a state of sheer panic growth stocks have been on sale for the last three weeks, and many have lost over 50 percent of their share Price over the last few days and the stock market is now following suit: losing 1.6 in early market trading. Today, as i'm recording this video and about three and a half percent in just the last week, there are obvious reasons for why this is happening. Inflation is running away and there are fears that it can go a heck of a lot higher than that 6.8 rate that we saw in november. Interest rates are at risk of rising very sharply over the next few months to combat this inflation bank of england.

In the uk has just made a surprise announcement to increase their rates from 0.1 to 0.25 and now everybody's expecting the us to follow suit in early 2022., we have had news that the buildback beta program has been cancelled over in the us and in the last Few hours we have news of countries shutting down yet again. France and germany have closed their borders to the uk. The netherlands has just gone into another full lockdown. The uk government has had an emergency meeting over the weekend and is holding another one later today to discuss similar measures.

The world economic forum in davos has been cancelled, so yeah the world is panicking and naturally enough growth stocks are getting hit at the hardest. At this stage, the market sentiment has shifted. People are now shouting that the stock market is overvalued from the rooftops, and people are telling people like me. You know people who invest in grey stocks that we are idiots we're about to lose everything we're about to get completely decimated.

I get a lot of very angry comments on my youtube channel from people telling me but sasha you said tesla is going to do so. Well and it's down 25, how dare you i haven't, doubled my money in three weeks, what the hell man! So let me get a few things straight, because i think there is a general misunderstanding of investing in grow stocks and this misunderstanding runs deep. It is a lot deeper than just saying people don't understand gross stocks and that you know growth stocks are volatile. I presume that most people understand the volatility element, at least that to that level of depth.

First up, i wanted to explain something that is both extremely simple and extremely difficult. At the same time, simple and difficult are not antonins by the way they're not opposites of each other. Something can be both simple and difficult at the same time, because the opposite of simple is complex rather than being difficult, and the opposite of difficult is easy, which is not the same thing as simple, and here is the truth, and that is that gray. Stocks are by nature, the best possible long-term investment.

This fact is both simple and difficult at the same time possible by the way is the key word in that phrase, because it is not the same thing as probable when people attack the concept of gross stocks, they confuse those two words you can tell by the Way, the words are pretty important here at some point: every company out there that is a stock market giant at the moment that is dominating that has been dominating for decades. At some point, that company was a growth stock competing with the establishment. Sometimes it's a growth stock company competing with established market leaders and you know trying to steal their mantle, the apples and microsoft's. You know turning up in the mid 70s going public in the 80s facing the seemingly impossible task of competing with ibm.

Sometimes it is a company that challenges and disrupts with innovation that is hard to quantify when it first turns up a bit like google 20 years ago and gray stocks are the land of multi-baggers. This is where you can get returns, measured in the hundreds or even thousands of percent. It is something that doesn't occur in other forms of investment really, but it's also the land where, for every facebook there are dozens upon dozens of myspaces. It is important to be aware right, so the typical counter argument will tell you that the big problem with gray stocks is that they are a little more than just a stab in the dark, you're picking these companies.

But you know the vast majority of them are going to fail. Hindsight is great, but most stocks will not prevail and most that actually don't fail will fade. So the average of all the different gray stocks doesn't look. Great people often show you graphs, which show what hey the average return of all grow stocks.

Isn't all that good looking? But this is where that opinion is wrong, because there are a lot of critical factors that determine the long-term success of a great stock. That can be genuinely analytically assessed. Some of it is maybe more quantifiable than others. Some of it may be more on the qualitative side of analysis, but factors can separate a growth stock that will explode through foundational disruption from you know, being something that is based purely on hopium.

Some of the factors are based on the core product constructs and design. Some are based on the importance of breaking through a critical mass of initial adopters and being first to market that some pretty much destroys the chances of competition who are too late to the game. Some are based on the understanding of fundamentals of how the business model is structured, how the finance is structured and what the company is focused on behind the scenes and not all growth stocks are the same. A company that is pushing a fake truck down a hill to promote their stock.

Their share price is not the same as a growth company that is reinvesting. Every single spare dollar they have back into growth instead. Here is something really important for you to know. The time we are living in right now is not somehow better in terms of tech, innovation in terms of ingenuity than things that we've been through in the past.

It is very, very common to have this perception. The time we're living in right now is the time when technology is really doing big things and yeah. You know it's cool, we have electric cars, we have self-driving major announcements and biotech all of that kind of cool stuff. You know it's a good time to be alive, but a decade ago we were going through a revolution in communication and data that was probably even more transformatory.

You know smartphones and all of that, the decade before that we were going through an internet revolution which brought information to us in a fundamentally different way that didn't exist before, and that was also pretty big. If you remember the days before the internet and the decade before that, we were switching from using pens to using keyboards and computers, so yeah, there's always major disruption or some kind of major innovation happening. Right now is great, but so is pretty much any other time. If you're looking over the last 150 years, major innovation that is fundamentally changing our lives for the better innovation that does not care, if you're going through an economic boom or a stock market crash, because our nature is hume as humans is this, we have a natural Tendency as a society to make things better and to move on to solving the next problem.

Immediately after whenever you turn up to this investing table, there are big prizes to be won in the innovation stock space because inflation comes and goes high, interest rates come and go market crashes and market booms are also going to come and go. But true, disruptive innovation does not go after it turns up, it tends to hang around and as a growth stock investor. Your job is to understand the trends and see where things are going see where the world is headed and then you need to board the train and wait. You might have to wait five years, sometimes 10 years, sometimes even longer than that to get the payoff.

But if your thesis is right, if and if your analysis is solid - and some of your picks include some of those disruptive winners - that's where the disruptive returns are also going to be about. Don't get me wrong. I'm not saying it is easy. It is by no means simple, it is difficult and there is a big risk of making big errors, but it's also important to acknowledge that a grey stock today is a very different kettle of fish to how gross stocks used to function even 20 or 30 years Ago, the availability of funding and support is completely different availability of talent and the willingness of that talent to go and join earlier stage.

Companies is entirely different. There are factors out there that would kill most disruptive innovators 30 years ago, but are relatively easy things to overcome relatively easy things to manage today. Market openness and general access means that a small company with a tiny marketing budget or no marketing budget can do well. It can grow in a place where it was absolutely impossible to do so before.

So if you don't have the stomach for waiting the stomach for giving up the short-term battle to win the long-term war, the stomach for picking total losers, along with some of the big winners, then grace talk. Investing is probably not for you. If you want results in the next four weeks, you know growth. Stocks are definitely not for you.

If you're not ready to write the ways of the stock market, especially when things look red, then grey stocks are again absolutely not the right thing. For you, the game of snakes and ladders does happen to have a lot of snakes. But if you take just one thing away from this video take this real disruptive growth stocks will win in the long term because they always do, and they generally do not care. What the short term sentiment around them is if a company is fundamentally changing some aspects of our lives for the better in a noticeable in a material way like improving the way we live, improving the way we work, saving us time, automating, boring tasks or just making Things easier: if a company is going to do that, it really doesn't care what the discount rate you apply in your dcf model is and that's why, when i look at the stock market right now, all i see is a giant sale where all my favorite chocolate Bars are on a massive discount and that's what i particularly like being a grow stock investor, i'm like a kid in a candy store that has been told that he can buy twice as much candy for the same or one dollar of pocket money.

If you found this video useful, please don't forget to smash the like button for the youtube algorithm. Thank you. So much for watching and i'll see you guys later. You.