What's up you guys, sasha here in a video i put out on my channel just over two months ago, i went and bought a bunch of stocks as part of opening. My trading 212 isa account now in that time, in just about two and a half months. Those stocks have risen by 8.4 percent, a little bit more than that, and the question is: how did that happen? How exactly did those stocks go that high? I want to cover a few interesting points about how i pick my stocks and how it's quite different to pretty much every single other bit of advice that i hear, and i just want to talk about the philosophy of investing money. Just a little bit in this video, hopefully you'll, find it interesting.

Let's go now just to set the scene so that you can understand exactly what the trading environment is, especially if you're watching not the moment. I release this video, but maybe sometime later the ftse 100 in the same time frame has been down 3.6 from the day when that video came out to the day when this video is going to be coming out, the s p 500 in the same time frame, Has done much better, the s p 500 generally over the last couple decades has been doing better than the ftse, but even that has gone up just 5.0 percent just over five percent and the s p. 500. Generally speaking, in the vast majority of cases over the long term will beat 90 percent or more of active funds and a vast vast majority, maybe as high as 99 of active investors trading their own stocks.

How did i do it? Was i lucky? Maybe in fact some people will say probably because the time frame is quite short, there's certainly not enough in there to prove any kind of point and i'm not trying to prove any point in this whatsoever. I'm just using this as an example, because that's the one time when i showed in a video on my channel how i went and bought a selection of stocks, i didn't really talk in that video at all about how i picked those stocks. In fact, i kind of glossed over that and made a few jokes in the process, but did i look at any complex analysis? Did i look at charts of candlesticks and try to determine which candlestick shapes are likely to be coming down? The line? Is it going to be trending up down? Is there an inflection point? No! No! I didn't do any of that. I didn't look at any of that data at all.

I didn't look at any analyst projections. I didn't look at any target prices that analysts were setting for the stock. I barely looked at financials. I did look at the financials very, very high level.

I didn't spend more than a few minutes looking at them to just sense check a few things before i went and invested. So if i don't do any of those things, how exactly do you go and pick a stock? That's what everyone tells you you should do now point of warning. The vast majority of people out there will disagree with my approach. A lot of people will tell you that this approach is wrong.

It isn't in any way analytical it isn't mathematical and heck. I get it. I study math myself. I completely understand that this particular way of thinking about things is against the grain.

It's against how a lot of people like to think about it, or at least against how people like to convince themselves that they think about it. Before i did this video, i went and looked at a bunch of other youtube channels and other videos which tell you exactly how you should be picking stocks and exactly the metrics. You should be looking at and there's a weird and wonderful mix of exactly which ratios are important and which numbers you should be focusing on in their latest annual report, which relates to data from some point a year or two ago, which is the last financial year. That that particular report covers - and here is my big problem, with the way that people look at it and that is people use data and people use numbers from something that happened in the past.

In most cases a year, two years or three years in the past. In order to make some kind of smart prediction about what that company is going to be doing in the future, we're going to look at all those graphs with candlesticks which shorten and lengthen on different horizons, and then they go and try to make an assessment. As to whether now is exactly the right moment to go and pick to buy that stock - and i didn't do any of that - i didn't actually go and try to time it at all. I went and bought all the stocks just within a few minutes.

Some people will tell you that you need to go and watch out for the big announcements. You need to wait for the quarterly results or the big annual report that comes out, and you need to time it so that you can get in before. The good news is announced because that's when stock is going to jump or you need to get out before the bad news is going to come, and people try to predict whether they think the news is going to be good or bad and they'll use. A combination of different analysts, thoughts on this and numbers that people have made up in their heads because nobody actually has access to this data before it comes out again.

I didn't do any of that either. The main point here is that i don't treat investment as a way of making income. I don't want to treat investments as something i actually have to spend time on every single day. I don't want to go and look at my portfolio every single day to try to make fine tuning adjustments.

In fact, i very very rarely make adjustments. I only make adjustments when i need to make a big change from having a lot of money invested in stock. A to changing it to be invested in stock b, i don't do any form of day trading. I don't try to gain my positions and i certainly don't try to play on any kind of speculation or invest in companies where people think the value is going to jump because other people are going to be buying it.

So here is my secret. I don't do what everyone else does i don't model my behavior with my investments on what other people are doing. I don't try to copy somebody on youtube, telling me to do something just because they happen to be telling it. I don't go and look at other people saying how amazing buying a tnt or some other stock like that is because of the dividend payouts that they receive and then go and do exactly the same and then go and put out a video.

Where i tell you to go and buy a tnt stocks, because i did it because i watched a video where somebody else said that they did it because they watch the video you get it you get the point. I try to think with my own head. A little bit on this, and i try to make my own decisions based on my own understanding of how all of this works now just a mini disclaimer. I am not offering any kind of financial advice and you should make your own financial investing decisions by yourself, based on your own understanding of things, i'm just showing you how i do it from my own personal perspective anyway.

Here is my entire strategy, summed up in one sentence: companies do well and their stock price rises when their products or services deliver above expectation value. That's it the end as simple as that it doesn't matter how healthy your balance sheet is. It doesn't really matter exactly what the breakdown of the various costs over the last few years in your company is. It doesn't even matter how many years in a row you've been paying dividends and how healthy that dividend yield is.

I don't really think about investments in that way, i make my investment decisions purely on the dynamic of the value of what the product or service of the company produces is to the consumer of that product or service. Now, just to make it very very simple: what i'm saying here is i value companies on the dynamic and the movement of the quality of the service of products that they produce and the value of that to the people or the companies or whoever else is going To be consuming that product or that information performance in the past is not a good, and certainly not a robust reflection of what performance is going to be like in the future. Just because the company has been going for 100 years does not mean that it will do very well for the next five. The people who were there a hundred years ago making the company do well, are not the people there today, ip that the company had 30 years ago is irrelevant and completely outdated now, so that ip again is not relevant and not really useful.

In most cases, people who base their analysis of what the company is going to be doing in the future, solely based on reports of what the company's done in the past are kind of missing. The point which is you're trying to invest in companies that are going to change you're, trying to invest in companies that are improving and data from what they've been doing before, will not tell you whether or not they're going to be improving from this point forwards. Just to make it really simple, let me cover five specific principles that i use in making my decisions that relate to this value, dynamic that i mentioned earlier, and an example of a company that i invested in in that video from two months ago. That is falling under that particular description number one.

If there is a product that a company produces, that is continuously improving at a rapid pace that is outpacing everybody else in the industry and the company is continuing running at that pace, while all their competitors are just not even getting close to catching up, and if That company is beginning to dominate the market through that. I am in i'm interested in investing in that company, because i can see that company becoming a completely behemoth dominant player in the sphere in which they're at and the company. That is probably best explained by this. That i have stock in is tesla tesla started out thinking about cars in a fundamentally different way, to the way that all the old-school manufacturers think about them, and it's not just about the electrics it's about, focusing on the end consumer, focusing on the user.

It's about making every single, tweak and adjustment that you can make in the car super super easy it's about, eliminating annoying little dials and annoying little things. You have to move and find the right buttons and making a screen that is intuitive to use and making it very, very pleasant to actually be in that car. It's making you able to adjust everything from the lighting to the way the car works. Every single little detail is just thought through it's about the computer, knowing that you're about to run out of electricity and routing you somewhere, so that you can go and charge up without you having to think about it without you having to focus on any of those Minutiae for years, when regular car manufacturers release a car, they would tell you about the type of engine it uses, the innovation in the valves and the innovation in the way the petrol or diesel or whatever it is, is injected, and all of that stuff they'll tell You about some other tech improvements that make your mileage a bit longer, and all of that is interesting to a degree, but when tesla releases a car, they tell you about how comfortable you're going to be on a long journey.

They'll tell you how relaxed you're going to be when you get there, they focus on how easy it is to drive and features, no matter how difficult for tesla to actually do and then get approved by regulators to just make your life more relaxed and make you Enjoy the process of driving the car better, that's why they're doing well! That's why i think they will continue doing well, because the competition in the sphere is just not there and the competition is still years and years behind tesla, just as they're announcing the next generation of battery development, just as they're announcing cars that can run for over 500 miles on one charge: this is something that is an order of magnitude beyond where every single other car manufacturer is that's. Why i have stock and tesla the second type of company that i love investing in is a company that is an established player within a particular niche and when their products have suddenly begun being head and shoulders like a different level, above where everybody else is playing. That is something that often analysts don't see in the numbers. It is something that nobody goes and sees on the balance sheet or in the p l from last year, and a good example of that more recently is sony with several of their products.

More recently, they've begun dominating the market and going out and producing something that is different to what everybody else is doing. That's why some of the verticals that they're in they're actually beginning to perform far above average everything from their movie production arm through to their camera arm and sensor arm. The sensors from sony are supplied to so many cameras, phones and other gadgets around the world that that i think in the future will be a hugely hugely valuable part of the business. And again, nobody really looks at that, because that doesn't translate into numbers from two or three years ago.

When i see companies release a product that is revered by everybody and where everybody agrees that that product is several years ahead of any other product. Despite that company not being dominant at the moment, despite that company having a relatively low market share, i know where that company is headed. I want to buy into that and that's exactly why i hold sony stock as well. The next one is relatively similar to the one i just mentioned, but it's not a consumer facing thing.

It is purely a tech based thing, and that is when i see a company that is doing exceptionally well in terms of the tech behind their products, where that tech is so far ahead of its rivals that their rivals just don't even know how to close the Gap then, i'm interested in buying that stock, regardless of what's currently happening. A lot of people try to time their investments based on events. They think that they need that one big event and then the stock price is going to rise and they try to time their investments for those events, but the thing is those events are driven by something else. Those events are driven by the continuous improvement in tech.

In this case of those companies and how that tech is forcing their competitors to do things that cause those events amd is the company that i'm referencing in this particular example, their processor chips and other chipsets they're producing are so far above intel and other competitors that Some of these companies have publicly begun stopping trying to even compete and that sent the stock prices roaring, and the reason that happened is because their tech was already above and far beyond the competition, and that is why i was invested before any of that happened before That big jump happened, and that is why i continue to be invested in them. The next generation chips drew at the end of this year are gon na have continuously better improvement, whereas all of their competition is still sitting light years behind the next type of company. They like investing in is a company that focuses on customer problems and solves those problems without customers, even knowing or wanting necessarily those problems to be solved before they are solved for them, and the company that does this exceptionally well at the moment and has been doing For some time now is apple now, a lot of people really dislike apple, and i understand why that might be. They say that apple devices are not friendly for repair.

Apple devices are poorly designed. If you want to customize them in any particular way - and i get it, but that's a very, very specific subgroup of the overall population, the thing that apple focus on is your average consumer and the average consumer wants products that work super fast. That don't have any issues with viruses, other things like that and that's what apple delivers before anybody else even considered it apple began installing solid state flash drives into every single device that they ship, whether you're buying a phone, whether you're buying an ipad, whether you're buying One of their macbooks, everything came with a solid state drive because they realized that it doesn't really matter how fast your processor is. It doesn't really matter how good your graphics card is to a degree, but the thing that really annoyed people is when they were trying to open a program, and it took a bit of time to go and open it.

When you're trying to open a file - and you click on it and there's that thing, spinning that just infuriates you as you're waiting for your word document or whatever, to open that's, why they began installing solid state drives just the fact that their processor is 20 less Fast than some other processor, they could have had most people, most average consumers who are using the computer for browsing the internet or playing a light game or something like that will never ever notice. But these types of things people do notice and they continuously go and focus on this exact kind of thing in order to improve the customer experience, because customer experience is key. Customer experience and the way that people actually use their devices is everything and they try to take off their tech head and they try to focus on what the product they're delivering to the customer actually does in the normal way that the customer is going to be Using it and that's why they're doing so well, the last type of company that i invest in is something that goes slightly against what i said before, and that is a company that evolves over time and the speed of that evolution is continuously growing and doesn't seem To be slowing down at all, and this does reference the past - what i'm talking about here is something where i can see the trajectory of their current product evolution only accelerate from where it was before, and people often don't like investing in these types of companies, because What they'll see is their stock has been rising continuously for several years and they're thinking. A correction is true or they're thinking.

Eventually, it's going to crash they're thinking it is too late. I've already missed the part where the company has already grown and therefore i shouldn't be investing in it, because now everybody else has already gained their gains and i am likely to lose my money. But i like to see a company who continuously go for the next level in terms of their product quality and in terms of the way the consumers use them, and the best example here is google. Their services are covering more and more of the everyday needs of their consumers.

They are still yet to reach half the world that is still not really using the web as a way of interacting with the world as a way of doing their shopping as a way of finding information out, google is still growing very, very, very fast, and most People who live in the developed world who live in a big city who have all their friends in the same position as them, don't even recognize that they don't recognize that google is a global company who's serving the entire world and the revenues they make are made. In hundreds of countries, not just the particular place where they live and the evolution of their product is making things that much better and that much easier and lots of this is something that people just glance over. They don't even focus it, but just go and look at the search results from today in terms of the value that that search result brings you in terms of the information that google is showing you right up front, whether that's the snippets, whether that's the various maps. They're showing whether that's the various quality of the links they're providing versus just even five years ago, let alone 10, 15 or 20 years ago as a company, they are evolving and their evolution is speeding up so fast that i can see them dominating for years and Years and that dominance is going to result in higher profits that higher profits number is going to result in their share price growing.

I am interested in that and that's exactly why i have shares in google as well. If you agree or disagree, if you found this type of thing, interesting make sure you go and leave a comment below if you're interested in information about my investments, about personal finance, about personal finance products and making more of the money that you have make sure you Subscribe to this channel, that is exactly what i talk about three times a week on a monday wednesday and friday make sure you go and hit that like button. If you like this video for the youtube algorithm, it is hugely important. Thank you.

So much if you have done it, if you haven't done it just go and do it go and do it right now. I really appreciate it. Thank you so much for watching and i'll see you guys later.