In this episode of the podcast, Brandon and I break down our picks for the $1,000 Portfolio Challenge where we were both responsible for allocating $500 to the stocks or ETFs of our choice. This proved to be more difficult than originally anticipated, especially with picking individual stocks. I find that when you are starting to invest, especially with a small amount of money, individual stocks can eat up a large part of your portfolio concentration. With that in mind, I always recommend starting with a solid foundation of ETFs or Index Funds that track the overall U.S. market as well as the International market (Vanguard, iShares, Fidelity, and Schwab are a few providers that come to mind). This free form dialogue serves as an informal introduction on how we think about picking stocks, and is just the tip of the iceberg! Stay tuned for a future episode where we break down some community stock suggestions and potentially consider them as constituents in our portfolio!

Current WeBull Portfolio:

Ticker  Allocation

UBER 6%

VUG  26%

ECOM  13%

PLUG  7%

ARKK 14%

VGAC 7%

CCIV 27%

Community Picks

These are stocks that were polled and suggested through my social media accounts

EQB, SPCE, STPK, CCIV, DT, TER, ZS, FSR, MRGE, NNDM, WIMI, NERD

I have been doing a lot of studying for my Real Estate License lately, but I plan on continuing my reading list! Here are a few books that I continue to read from cover to cover frequently and dog ear important points. If you have enjoyed my podcast so far and want to find similar motivation for long-term investing, look no further than the below books! If you decide to purchase these books, follow my affiliate links down below and support this channel!

The Little Book of Common Sense Investing - https://www.amazon.com/gp/product/B075Z6HSCJ/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B075Z6HSCJ&linkCode=as2&tag=wallstjunky-20&linkId=b748bf635e44dfa89c10900adeef960b

The Intelligent Investor - https://www.amazon.com/gp/product/0060555661/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0060555661&linkCode=as2&tag=wallstjunky-20&linkId=6af1dbfd439b0f7332e7f080a2295f2e

Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! - https://www.amazon.com/gp/product/1612680194/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1612680194&linkCode=as2&tag=wallstjunky-20&linkId=ae58e57141029cb70004bfeacba780a3

I started a Discord channel with Brandon where we plan on starting weekly calls to get all your investment questions answered and to bounce ideas off one another

https://discord.gg/xg6UaBwZ

Follow me on Instagram & Twitter for up to date market color!

https://twitter.com/WallStJunky44

https://www.instagram.com/wallstjunky/

Available places to stream the WallStJunky podcast:

https://linktr.ee/wallstjunky

Link to Facebook Investing Community:

https://www.facebook.com/groups/301632014175967/

Free Stock from WeBull Program:

https://www.webull.com/activity?inviteCode=RDLGcD4x25iE&source=invite_gw&inviteSource=wb_oversea

I was driving back from a nice weekend in Tahoe and decided to rant about GameStop and the bombshell it is likely to leave behind for retail investors to pick up the pieces. GME is definitely my new trigger word as it has given even your most simple retail investor a new found confidence that he or she is a sophisticated investor. Hope you enjoy this rant as I attempt to give you what I feel is the rational perspective on the recent run-up on GME shares. Always remember to do your due diligence and stay hungry!

If you enjoyed this podcast, give me some feedback and let me know what I should rant about next!

Book I am currently reading:

The Little Book of Common Sense Investing by John C. Bogle

https://www.amazon.com/gp/product/B075Z6HSCJ/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B075Z6HSCJ&linkCode=as2&tag=wallstjunky-20&linkId=58928ab03d01aea3f72eaa8a25150c29

Follow me on Instagram & Twitter for up to date market color!

https://twitter.com/WallStJunky44

https://www.instagram.com/wallstjunky/

Available places to stream the WallStJunky podcast:

https://linktr.ee/wallstjunky

Link to Facebook Investing Community:

https://www.facebook.com/groups/301632014175967/

Free Stock from WeBull Program:

https://www.webull.com/activity?inviteCode=RDLGcD4x25iE&source=invite_gw&inviteSource=wb_oversea

In this episode of the podcast, I speak with long time buddy Brandon Young, a relatively new investor with just under a year of experience in the market.  I attempt to lay the foundation on the recent market volatility caused my the battle between the little guy and the big guy.  No where in this episode will I recommend any listener to invest in this current momentum play, but I attempt to explain the situation in latence terms so you can make your own informed decision.

Please like and subscribe to the podcast and share it with anyone you know that can gain something from this community.  

Book I am currently reading:

The Little Book of Common Sense Investing by John C. Bogle

https://www.amazon.com/gp/product/B075Z6HSCJ/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=B075Z6HSCJ&linkCode=as2&tag=wallstjunky-20&linkId=58928ab03d01aea3f72eaa8a25150c29

Link to the Melvin Capital letter:

https://www.reddit.com/r/wallstreetbets/comments/l6omry/an_open_letter_to_melvin_capital_cnbc_boomers_and/

Follow me on Instagram & Twitter for up to date market color!

https://twitter.com/WallStJunky44

https://www.instagram.com/wallstjunky/

Available places to stream the WallStJunky podcast:

https://linktr.ee/wallstjunky

Link to Facebook Investing Community:

https://www.facebook.com/groups/301632014175967/

In this week's episode, I have Pete Dunn join me on the WallStJunky podcast.  We dive into a number of topics related to the passive approach and the serious shortfalls that most new investors face when pursuing something more active.  The common theme in this episode is a focus on the actual act of saving, rather than stressing about the investment selection.  If you are a DIY investor, this episode might not be for you, but if you are a DIY investor that is consistently underperforming the market (i.e., chances are that you will over the long-run), than value might still be obtained in this episode.

Behavioral finance and the topic of biases are discussed in this episode as it relates to an individual's portfolio performance.  Ultimately, it comes down to swallowing your pride, controlling the self-attribution bias, and understanding that a vast majority of investors will significantly underperform the market, and that's okay.... because with the help of ETFs and Index Funds, you can get that market return.

Having issues with terms brought up in this episode? Go to this link - https://www.investopedia.com/

Books recommended by Pete Dunn:

The Little Book of Common Sense Investing by John C. Bogle  

All About Asset Allocation by Richard A. Ferri, CFA  

Work and Life Principles by Raymond T. Dalio  

The Intelligent Investor by Benjamin Graham  

Buffets Alpha by Leje Pedersen, Andrea Frazzini and David Kabiller  

Where Are the Customers Yachts? by Fred Schwed 

 How to Create Wealth Investing in Real Estate by Grant Cardone  

The Millionaire Booklet by Grant Cardone  

Cash Flow Quadrant by Robert T. Kiyosaki  

Fake Money, Fake Teachers, Fake Assets by Robert T. Kiyosaki  

Rich Dad Poor Dad by Robert T. Kiyosaki  

Unfair Advantage by Robert T. Kiyosaki  

Index Revolution by Dr. Charles D. Ellis  

Fire Yourself by Robert T. Kiyosaki 

 Get Your Financial House in Order By Robert T. Kiyosaki  

Barbarians at the Gate: the Fall of RJR Nabisco by Bryan Burrough  

A Random Walk Down Wall Street by Burton Malkiel  

Valuing Financial Service Firms by Aswath Damodaran  

Berkshire Verses KKR: Intermediary Influence and Competition by Lawrence A. Cunningham  

Guide to Investing in Gold and Silver Protect Your Future by Mike Maloney  

Is (Systematic) Value Investing Dead? by Ronen Isreal, Kristoffer Laursen, and Scott Richardson  

From assets to income: A goals-based approach to retirement spending by Colleen M. Jaconetti, CPA, CFP, Michael A. DiJoseph, CFA, Zoe B. Odenwalder, and Francis M. Kinniry Jr., CFA  

Two Big Distortions: Bank Incentives for Debt Financing by Jesse Groenewegen and Peter Wierts  

The Business of the 21st Century by Robert T. Kiyosaki (note: in my estimation, the business in this book is not good to get into)  

The Man who Solved the Market: How Jim Simons Launched the Quant Revolution by Gregory Zuckerman  

Proprietary Trading: Truth and Fiction by Peter Muller  

The Options Answer by Felix Frey  

Link to Pete Dunn's YouTube channel below:  

https://tinyurl.com/PeteJDunnYouTubeChannel

Links Pete Dunn's books on investing:  

https://tinyurl.com/MillenialsCommonSenseInvesting

https://tinyurl.com/WarrenBuffetFundOfFunds

Have I convinced you to start investing yet? If so, this episode covers top brokerage choices as well as what investments to choose first.

An Index Fund is a type of Mutual Fund that is meant to track an index, typically higher management and taxation fees, along with only being traded at the end of the day. John Bogle, “father of investing”, and found of Vanguard, revolutionized the way we invest. Now, ETFs are viable approach for all investors, especially those that don’t want to hassle with picking individual companies themselves. ETFs are very similar to index funds, except they offer more liquidity because they trade much like securities intraday, and they are more divisible (smaller and more affordable).

If all you did was buy the Total US Stock Market for the past 20 years, you would have earned a 285% return, almost quadrupling your money. For the new investor that is overwhelmed and unsure of what to invest it, adopting a strategy like this to begin with is the best way to enter the market! This strategy has proven time and time again to not only beat most hedge fund and money managers, but also allow individual investors to meet their financial goals.

Building Block Funds:

VFIAX Vanguard Fund SP500 Fund Cost: 0.04% Expense Ratio Minimum: $3000 Investment Alternative ETF: VOO - 0.03% Expense Ratio This is a Vanguard Index Fund that follows the S&P500, which is the top 500 publicly traded companies in the United States. Buying this one index fund is basically the equivalent of buying a small piece of all 500 of the largest companies in the US, and you’ll get access to some of the bigwigs like Apple, Microsoft, Amazon, Google, Facebook, and so on.

VTSAX Vanguard Fund Total Stock Market Cost: 0.04% Expense Ratio Minimum: $3000 Investment Alternative ETF: VTI What makes this so unique is that it encompasses the entire us stock market in one single fund…like, this is everything. if there’s a small cap, medium cap, or large cap stock in any industry you can think of - this index fund has a tiny piece of it. For a small price, you can own a small piece in over 3,600 companies.

SWPPX Charles Schwab SP500 Fund Fund Cost: 0.02% Expense Ratio Minimum: NONE This index fund was started in 1997 and it ALSO follows the SP500.

SWTSX Charles Schwab Fund Cost: 0.02% Expense Ratio Minimum: NONE This encompasses the entire US stock market index, similar to VTSAX.

FXIAX Fidelity Fund Total Stock Market Fund Cost: 0% Minimum: NONE This is Fidelity’s version of the SP500 index fund with NO EXPENSE RATIO and NO MINIMUMS.

FZILX Fidelity International Stock Market Fund Cost: 0% Minimum: NONE This is, in my opinion, a GOOD index fund for everyone to at least get in on - because an international index fund will cover foreign and emerging markets that COULD perform very well over the next few decades. Now, it is true that - Historically, the SP500 has been a better investment than international stocks - but that might not always be the case and this is an excellent diversification tool for anyone’s portfolio.

BIG WINNER: FZROX Fidelity Total Stock Market Fund Cost: 0% Minimum: NONE Unlike Vanguard, which has a 0.04% expense ratio - this one has no expense ratio and is totally free to own!

Higher risk higher reward ETFs (these are just examples and many more exist!):

Large Cap ($10B+): VUG, QQQ

Mid Cap ($2B - $10B): VO, IWR, IJH

Small Cap (<$2B): VB, IWM

Examples of Cyclical ETFs (keep in mind that there are many others to choose from!) (also the expense ratios tend to be higher in these ETFs)

Consumer Discretionary: XLY

Home construction ETF: ITB

Emerging Market eCommerce: EMQQ

Broader Global Exposure to eCommerce: IBUY

Examples of Emerging Markets: Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea, and Turkey

Ryan O'Connell, CFA has a Bachelor's and Master's in Finance and Economics and is currently pursuing his Master's in Computer Science from the University of Pennsylvania. Ryan has worked as a Financial Analyst and Risk Analyst for several institutions over the past 4 years and is also the founder of PortfolioConstructs, which aims to educate new investors on the process of building a diversified portfolio. In this episode of the podcast, we dive into the passive portfolio construction approach as it relates to millennial investors. We address the misconceptions of ETFs and how these investment vehicles can be used to improve your risk-adjusted return. We also dive into the different brokerage choices a new investor has to choose from and address the pitfalls of using the Robinhood platform.

Recently, Ryan also developed an ETF optimizer that can help build a diversified portfolio using exclusively ETFs. This algorithm takes into consideration key investment & risk constraints and develops an allocation for the individual based on these inputs.

Make sure to show your support for Ryan and his channel!

Link to PortfolioConstructs Website : http://portfolioconstructs.com/

Link to PortfolioConstructs Youtube Channel: https://www.youtube.com/channel/UCAkyj2N9kd0HtKhCrejsYWQ

Link to Portfolio Construct ETF Optimizer: https://portfolioconstructs.com/portfolio-optimizer

From starting investing in 2013 to achieving a 6-figure portfolio by age 25, there were a few investment principles I picked up along the way.  Time can either be your best friend or you worst enemy, procrastination is the deciding factor for that one.  Also, KISS (Keep it simple stupid), you don’t need a sophisticated investment strategy to build long-term wealth, just time and discipline.  A wiseman once told me, “You can control two things, how much you spend, and how much you earn, but controlling your spending is a whole lot easier!”.   DM me on any platform listed at the bottom of the description or email me at [email protected] for any questions or topic requests    

The quick and dirty to starting to invest: 

-Track your expenses for a month 

-Notice how much is spent excessively on things like food, drinks, etc. 

-Cut expenses by say, $50 (eat out twice per month and Starbucks once a week instead of two) -Open either a traditional brokerage account or contribute additional capital to company 401k  

-Just to list a few brokerage companies: TD Ameritrade, Fidelity, ETrade, Vanguard, Charles Schwab, and many more 

-The investment industry has gotten insanely competitive, as a result, most brokerages charge no commissions for Stocks or ETFs -Set up automatic monthly contributions into your brokerage account so you don’t spend that $50 you saved in expenses! 

-Listen to the entire podcast and do your own due diligence on low-cost investment vehicles like ETFs, Index Funds, or even some Mutual Funds 

-Invest at all times (up markets, down markets, sideways markets), enjoy the ride!  Don’t try to time the market!

ETFs discussed in this podcast: 

VUG - Vanguard's Large Cap Growth fund that focuses on passively investing in large-capitalization growth stocks.

VTI - Vanguard's Total US Stock Market fund that attempts to replicate the total return of the US Stock Market

VOO - Vanguard's fund that tracks the S&P 500

Favorite economists to follow: Mohamed A. El Erian & Peter Schiff  

Try TD Ameritrade’s free platform, ThinkOrSwim, that allows you to open a paper account and simulate trading and test your strategy: https://www.thinkorswim.com/home.page  

Technical programming background?  Try this Youtube series that merges Finance with Python: https://www.youtube.com/playlist?list=PLQVvvaa0QuDcOdF96TBtRtuQksErCEBYZ   

Some people have been asking, suggested reading and other resources:  

Intelligent Investor (Warren Buffet approved): https://www.amazon.com/Intelligent-Investor-Definitive-Investing-Essentials/dp/0060555661/ 

Think and Grow Rich: https://www.amazon.com/Think-Grow-Rich-Landmark-Bestseller/dp/1585424331/ The Science of Getting Rich: https://www.amazon.com/Science-Getting-Rich-Wallace-Wattles-ebook/dp/B01MRH3EZQ/ 

Investopedia (Online Investment Encyclopedia): https://www.investopedia.com/ 

Seeking Alpha (Articles and research covering all asset classes, crowd-sourced): https://seekingalpha.com/   

Instagram: https://www.instagram.com/wallstjunky/

LinkedIn: https://www.linkedin.com/in/wallstjunky/ 

Twitter: https://twitter.com/WallStJunky44/  

Business Email: [email protected]    

DISCLAIMER: The podcasts on this channel are meant to educate, not to constitute advice. Joshua Lutkemuller is not registered to provide investment advice and as such does not provide recommendations on the channel or podcast - those looking for investment advice should seek out a registered professional. Joshua is not responsible for investment actions taken by viewers and his content should not be used as a basis for trades.