Hey guys, it's sasha here is a staggering truth that investors hate the vast majority of active investors will underperform the market that they are trying to beat. So i thought well, that sounds like a really fun challenge: let's have a go and try to beat it anyway. Now, depending on which study you go and look at whether it's dow jones itself comparing themselves to different active funds, studies in brazil, eastern europe or asia in the long term, over 90 percent of active investors will earn less than the market that they are actively trying To beat, and yes that does include the actively managed funds with thousands of analysts, which in almost every case, will earn you less money than if you just had your money invested in the index instead. And the best thing is that investing in an index does not cost you the hugely expensive fees that these funds will charge.

I will always say to anyone who is brand new to investing anyone who doesn't have the time to properly do their homework or research or somebody who doesn't want to go and do that that investing in the market is almost always going to be the better choice. Because, in order to pick stocks, you really need to understand exactly what you are investing into. You need to understand the fundamentals of the companies that you're putting your money into. But despite saying this, i personally invest in specific companies, because that's something that i feel is the right choice for me personally, and it's also something that i have some professional experience in, and so i thought let's do an interesting experiment.

I am going to try my hand at beating the market and see what happens. The likelihood is that what happens will be a big failure, but instead of just picking the s p 500 to compete with, which is stable and the easy obvious choice. I am going to go with vanguard's vti etf, which replicates the us total market index. Some studies show that the total market index can actually have a slight advantage over just the s p 500 in the long term, especially when you go through periods that involve major financial crashes.

Now, over the last 10 years, the two have been incredibly close and almost exactly the same, which is not surprising, because the s p 500 actually comprises a large part of the total market. So here are the rules that i have set myself for this challenge. I get to pick any us company that i want to invest in and i can move my money in and out of these companies whenever i want to the companies can be of any size because i'm competing against the total market, and i have picked stake as The platform that i will use for this challenge because they have a huge four and a half thousand u.s stocks available, which means i can pick anything i like and they're, also the cheapest option for investing in u.s companies for people like me, based in the uk. That's because their 0.5 foreign exchange fee only applies when i deposit money or withdraw the money from the platform, whereas all the other apps, like free trade or trading 212, will charge you that foreign exchange fee on every single transaction.

If you want to understand more about how steak works, i have a detailed video that i'm going to put in the description below and up here, so go and check that out after this video. So i created my account on steak on friday. 7Th may a few days ago, at 1, 15 pm the vti index at that moment was 218.43. I deposited 1 000, but unfortunately i couldn't invest it right away because steak doesn't do immediate deposits unless you go and pay for the extra black account.

So i had to wait until monday to make my actual investments, so i received 1383 after paying the foreign exchange fee and i also got a free share of gopro, which i immediately sold for 9.83 to take my total starting amount to and 28 1393.28 by the Way, you can also get a free share for yourself by signing up with steak and making a minimum deposit of at least 50 pounds make sure you go and use my link in the description below, and i will get a little kickback for sending you their way. As well, thank you very much in advance. Next up, i went and did some initial investing on monday, the 11th of may, when my money actually arrived, i bought shares in 12 different u.s companies. I am looking for aggressive growth and i want to beat the market, so the objective here is simple: i need to pick companies that could, in theory, achieve 15 growth per year or more.

That's because there is no point in picking a company where i would expect it to only earn say seven or eight percent, because that would be below the level of which the market grows itself on average. Anyway. Now i am not saying that the companies i picked will grow at 15. I'm just saying that i only want big companies that i think could do that.

My distribution at this stage is pretty wonky. I have three large stocks that make up 66 percent of my portfolio, which is not particularly balanced, but you got to do what you got to do when you're trying to chase the market. My biggest investment was in tesla, which makes up 24.6 of my portfolio at the moment, as i'm recording close behind is cciv. This is a spec that is merging with lucid motors, another ev stock and because of fluctuations over the last week.

It has actually now become my biggest holding at just over 25. I have two videos where i explain in a lot of detail why i am invested in both tesla and cciv, and i'm going to put those links in the description below in case you're interested anyway. The third biggest investment in my portfolio is amd, which is about 17 of the total, and the other companies that i have invested in are fairly well distributed, but have less money in each one. Specifically, i have investments in apple adobe, etsy, fiverr, micron, palantir square twilio and twitter.

Now out of these fiverr twitter, twilio and palantir are big value buys for me, that is because all of them have recently had a big drop in their share price. As part of the tech sell-off, and i am very bullish about the opportunity, especially given the low starting point on price, i have made one small mistake in making these investments, which i'm currently in the process of fixing. When i first made my initial deposit, i invested all of it and at the same time i sold the free gopro share that i received now. The funds from the gopro share took two business days to clear, but because i only got 9.83, i couldn't reinvest that money, because the minimum you can invest in a stake is 10, so, rather than letting it just sit there as cash, i sold a tiny bit Of tesla so that i can go and get my money back out and i wanted to get a bit of a buffer, so i am waiting two days for that eleven dollars or so to come through and i'm gon na have twenty dollars to invest.

At that point, so at the moment my total money is one thousand three hundred and fourteen dollars 314.99. That is invested in companies 9.83, that i received from the sale of the free gopro that i can't invest yet and 11.66 that i'm waiting for from my tesla share. So that is a grand total of 1336.48, which is 4.08 down from when i started. The reason is slightly different from the 4.05 you can see on the screen, because i am not counting the initial loss in value from when i sold the gopro share, as i didn't actually pick it.

So it doesn't seem like the right way of measuring now. The vti index, in the same time period drops to 214 points 98, which is only 1.6 down in the same time frame. So i'm already 2.5 down versus the index, which is not a great start and proves the point. Maybe that i was making right to the start about trying to beat the market.

At least i got my free share as some kind of little compensation. Remember that you can also go and get a free share if you go and sign up, just go and use my link in description below, and thank you very much if you choose to do so, but the objective is to see how this goes over time. I am going to be making regular updates on this challenge and i will be adding more money to the portfolio over time. I will show you exactly what i'm doing and i'll probably wait any returns to make sure the numbers can be fairly compared if you're interested in following the journey and you haven't, subscribed yet make sure you go and hit that subscribe button to join the channel.

I am 95 apparently likely to fail, but it's gon na be fun watching it anyway. Thank you very much for watching. I really really appreciate it and, as always i'll see you guys later.