Hey guys, it's sasha, investing in 2021 is different, really really different. We've had a huge number of new people enter the world of investing new investing apps are making it incredibly easy for people to get started. For the very first time we've had new investment asset classes and the growth of crypto come about, and, as with all of these different good new things come to the world of investing. It's also developed a load of problems and things that i really really dislike.

So here are seven things about investing that. I particularly hate for the first one. I'm gon na hold my hand up, because i am guilty of joking about it. In my recent videos - or maybe i should say huddle my hand up, because although this term is funny, it is an intentionally misspelled version of the word hold.

It has its own issues, there's this new phenomenon that, if you buy a particular stock or any other asset, that you believe in that you must huddle that stock at all times, irrespective of absolutely anything, the idea is that, no matter what you just keep your assets And never sell because you are a true believer and while i am a long-term investor and while i do hold my assets through many swings, it is definitely a case that there are times when the correct decision is to sell. Sometimes the current price of the asset is too high versus your valuation. Sometimes there are market conditions which may mean you want to sell, and the key is with investing. It is as important to understand when you need to go and sell something as it is to understand when you need to go and buy something.

I used to have a whole load of netflix shares. Their price went and climbed much higher than my target price. For the asset was, and i no longer have any netflix shares as a result, that is a perfectly okay thing and i believe that with any investment asset, you need to be prepared to sell and know when the right point to sell is anyway. The next thing on my list is the winner takes all mentality, which is becoming very prevalent with picking your investments.

I see this very commonly with younger investors in particular. I recently did a video, for example, about lucid motors that i am now invested in uh through the cciv spec, and i made some comparisons to tesla in that video and a lot of comments on that video went and said. Well, lucid is a bad investment simply because tesla is a good investment. Literally people will say why are you investing in lucid? You should be investing in tesla instead, and this happens a lot with everything with cryptocurrencies and companies that compete in the same space, and i never really understand this mentality because you see, i am invested in both i'm invested in tesla and i'm invested in lucid.

In fact, in an industry which is growing really fast, as is with the electrical vehicles at the time at the moment, it makes perfect sense to me to be invested in more than one company that might do well within that industry, and i always make a decision About investing in a company based on the merits of that company, based on my expectation for the growth in value of those shares for where they might potentially be going and why they might potentially be going there. I don't decide on investing in one company at the expense of another company. The beauty of investing is that i am able to go, invest in a multitude of assets, as i choose now next on my list of things that i particularly hate is this concept of going to the moon. Now, aside from the really annoying phrase, in my opinion, it is also a really bizarre investing mentality because gone is the normal way of thinking when a steady rate of return of something like 10 percent being really good and 20 being an amazing year now seems to Be a whole new ethos that you should only invest in things that are going to go to the moon.

It is all or nothing when you put your money into something you're, either going to get one bazillion percent return or you're going to be left with absolutely zero. There's only two possible outcomes, which brings me to the next point, which is this weird shift and perception. Now, on what good investing returns are, i will talk to some people i'll make a video and i'll get people telling me that you know the 15 or 20 return that i am personally very happy with is really bad because i suck at investing. If i don't get at least 30 return on my investments per month, or something completely bizarre like that, if something is not giving you crazy returns, then the mindset of a lot of people nowadays is that it is a bad investment.

The fact that the s p 500 had a completely explosive year in 2020, getting ridiculously insane returns and that bitcoin happened to have their growth spurt during the same period means we have a whole new generation of people of investors. Who think that this is normal. We think that this is the way the world is going to continue going because they've never seen kind of what happens over the long term and how these things change and the worst thing is. These people genuinely believe that this is going to continue and the fact is it won't because simple economics will tell you that that kind of level of growth cannot possibly be sustained because of a finite size of potential total market value.

I'm not going to get into the depth of that. Unfortunately, for many people, the realization of this fact may come at a point which is a little bit too late, and it may be only apparent when the bubble bursts anyway. Link to this is the fact that investing has stopped being a science. It's become some kind of a weird voodoo art of sorts.

I hardly ever hear people talk about actual valuations of the thing that they're investing their money in when people talk about investing in a company or some kind of coin. There's never a conversation which mathematically explains why the current price of the asset is low and why? It's a good time to invest. People go and invest in tesla because it's tesla, it's cool. It has elon musk the current price of a share.

It's about 750, you know 30 or 50 dollars would the same people who are investing at that rate invested if it was worth a thousand dollars what about seven thousand dollars? What about twenty thousand dollars? What do the people investing? Think a fair price is unfortunately for too many investors at the moment. This thought never really crosses their mind and it gets much much worse with cryptocurrencies, which is where my next hate is this new culture of investing in hype. It's linked to some of my previous points, but it really has become completely insane. More recently, we live in a world where assets literally created as a joke can have a billion dollar valuation within a month of being launched, and there are millions of people who are buying into these assets with absolutely no functional value.

Where the only thing underpinning the price of this asset is the expectation that tomorrow's price is probably going to be higher, a lot of people are going to lose a lot of money. This is guaranteed, and it is obvious to some of us that are maybe a little bit older, that this is going to happen, but unfortunately, any attempt to explaining this usually results in a lot of comments. That politically could be phrased, as you don't understand. What you're talking about - and you don't know what crypto is as a typical comment or a retort and unfortunately i think i'm going to get a lot of those exact comments below this video.

By the way, i did study maths at university and i did spend my entire career working in finance, so i do understand cryptocurrencies to a reasonable extent anyway. Another thing that really bothers me is the complete disregard in the modern day of any safety or caution with investing people are prepared to part with a huge amount of their money, in some cases, all their money by sending it to some random guy on tick, tock Or by putting in some kind of weird crypto trading platform that they know nothing about that five minutes before they did it, they maybe have never heard of or by putting it into some kind of online investing account without any consideration as to whether that platform is Regulated whether it is authorized whether there is any form of protection for their money or assets, this is really really worrying and it is a sign that we probably don't provide enough financial education to make people understand the ridiculous stupidity of doing these kind of things. Hopefully, the regulation will catch up in this wave of crazy investing will pass so that people will stop repeatedly getting burned by these platforms going down and by the sheer ridiculousness of these scans. I hope you guys like this video.

If you did, please make sure you go and smash the like button for the youtube algorithm so that more people can go and watch it. Thank you very much for watching. I really really appreciate it. As always i'll see you guys later, you.

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