【00248】CLEC Long-Term Investing for Beginners Sep. 2021 By Priscilla Jeng

Hi everyone, thanks for watching my video on long-term investing for beginners.Today we will kick off the video with an introduction of myself and CLEC,then I will walk you through my journey of how I got started in long-term investingand share what I've learned throughout the years.This video is perfect for you if you're just getting startedor if you're simply just curious about investing and want to learn more.Alright, let's get started.First of all, my name is Priscilla and I'm excited to share with youmy personal journey to long-term investing.I first joined CLEC when I was 25and started saving money into investment funds every month.I'm now 33 and on the right path to retiring young and living with financial freedom.I love to travel and experience different culturesand my goal is to retire by 45so I can travel to the world and learn more.I also want to travel to different countries and see the world.How I got started in long-term investing was actually because of my mom.She has been my biggest influence in investing with a long-term mindset.She has always encouraged me to start saving at a young ageand to plan for the future.I'll be honest that I didn't always listen because of my love for travelingand I was spending a good chunk of my money on that.But now I'm great for it.I'm grateful that she never stopped trying to encourage meand let me tell you why.I still remember when my mom first started going to these CLEC classes on weekendsand would always be so excited to share the investment tipsthat she had learned with me.The more she attended these classes, the more intrigued I was to learn more.And then finally I decided to join the club as well.And I cannot express how glad I amthat I made this decision and gave it a chance.So what exactly is CLEC?It stands for California Life Enrichment Club.We're a non-profit organizationestablished in 2006 and registered in California.The purpose of this club is for investment and financial education.And the information we provide is absolutely non-commercial.All the funds or related products mentioned in this videoare only suggestions.We have absolutely no cooperative relationship with banks and vendors.In good faith, we always provide informationthat we believe is beneficial to the public and for your reference only.CLEC motto isInvestment must be cautious,make your own decisions,and be responsible for yourself.Now I will share my journey to long-term investing.So ever since my first job at the YMCA as a swim instructor,any money I earned I've always saved into my Willis Fargo savings account.I always thought this was the right way to manage my money,and every month I will look forward to seeing the promised 0.01% interest reflected in my account,even though the amount was always so small like around 10 cents.I always thought this was the way to go about your earnings,and figured once I make more money that the 0.01% will look a lot bigger.I just needed to work hard and keep getting raises,and so that was my ultimate goal.I figured I would hopefully retire around 60,just in time to start collecting my retirement benefits at 62.It was the typical path for average Americans,and I felt good about following this same path,since this seemed to be most people's plan.Growing up I never knew much about the stock market,and to be honest I never really paid attention until I was in my 20s.But even then I always thought it was risky.I've seen Wall Street movies and have heard stories of people losing money to the stock market,and I just always thought it sounded like a gamble to get involved,and I've never been much of a big gambler.To me I felt like it was just too risky.I worked so hard to earn my paycheck,and it just didn't make sense to me to throw it all awayon something that you have a 50% chance of winning or losing.I'd rather not lose any money at all.So when my mom,who has the same mindset about gambling,pretty sure she rubbed off on me and probably told me some of the stories,she started to convince me to save my paychecks into investment fundsinstead of my Wells Fargo bank account,I had to figure out why and what had changed her mind.I still remember the day my viewpoint completely changedabout long-term investments.It was when I saw this 70-year trend graph here on the leftfrom GSPC stock when I attended a CLEC class.What we can see here is the ups and downs in the performanceof S&P 500's aggregated stock price.But if we look at the red arrow pointing up,it's pretty apparent that overall trend has always gone up.This is why short-term,investment is riskybecause if you buy what you thought was lowand the market tanks the next week or month or even year,and you react and sell in a panic to prevent from losing more money.But if you invest long-term,it's always going to go up and you never lose money.I was so blown away by this graph here.I remember looking over at my brotherand we were both in disbelief.I also was surprised that I was not aware of this.This is all public informationand somehow it's not a top secret at all.But most of the general public don't even know about this.We never learned this in school.And if my mom didn't join CLEC,I would probably still be clueless.We felt like we found gold with all this information.In another CLEC class,we learned about the compound interest calculator.This I had heard of but never used it.It provides an overall estimateof how much your initial savings will grow over timebased on the interest rateand the compounding schedule you enter in.So I plugged in my numberswith $1,000 a month for 20 yearswith 15% interest.And I could not believe my own eyeswhen I saw the results here on the left.$3.5 million?I always thought being a millionairewas a far-fetched idea,let alone being a multimillionaire.And at the age of 45,that's 15 years earlier than I was planning on retiring,I was so excited with what I had learned from CLECthat I became a firm believerin the power of investing long termand just truly how much money you can make.It was so clear to me thenthat this was going to be my ticket to financial freedom,to retiring youngand traveling the world like I've always wanted.The combination of all of thisand the amount of money I made,the combination of the hard dataand the projection from the interest calculatorinformed me so muchthat I started putting money into investment right away.So I could start pursuingthe $3.5 million lifethat I never thought was possible.I began to invest as much as I couldwith every month's paycheck.And I've been doing that for over eight years now.And I'm happy to sayI am right on par with the projectionof the compound interest rate.I've been doing this calculator so far.And until this dayI am still so amazed by how wellthe long term mindset really works.There really is no trick,no insider secret,and it's not gambling.All you have to do isinstill that long term goal mindsetand really believe it.It may sound easy to do,but there will be timesit's hard when you see your investments are downor the lowest you've ever seen.But you have to remember not to panic,and remember thatwe're in this for the long runand it always goes back up.It's the natural ebb and flow of the marketand staying mentally strongduring these lowsis the most important factorin all of this.I am so glad I learned this from COECand it's truly changed my life.I will be a 3.5 multi-millionairein 12 years.This is why I wanted to share my story with youand help you become educatedon long term investingjust like my mom did for me.And hopefully you will do the samefor your family and friendsand get the word out there as well.All right.Let's switch gears a little bitto Warren Buffett,the king of investors.So diving a little bit deeperabout the concept of investing,Warren Buffett is a role model investorfor many people in the investing world.For those of you who are not familiarwith Warren Buffett,he is athe chairman and CEOof Berkshire Hathaway.He is known as beingthe most successful investorand he started investingwhen he was just 15 years oldand grew his net worthfrom 6,000 at that ageto 85 billionas of the end of last year.He is the fourth wealthiest personin the US.One of my favorite quotes by himIf you don't find a wayto make money while you sleepyou will work until you die.And that's whatlong-term investing isletting the marketdo the work while you sleep.Another one of his quotesI wanted to share isI always knewI was going to be rich.I don't think I ever doubted itfor a minute.This is such an importantmindset to haveespecially with the ebb and flowof the market.You want to make surethat you stay focusedon your long-term goalsand don't let your beliefs waver.Last quote I wanted to shareis someone sittingin the shade todaybecause someone planteda tree a long time ago.The same concept applies herethat if you start investing todayyou will reap the rewards later on.So here are some of the strategiesthat Warren Buffett recommends.Number onestick with long-term valueinvesting strategies.Don't let fear and greedchange your investing criteriaand values.Avoid being overwhelmedby outside forcesthat affect your emotions.Never sell into panic.This is the number onemost important factorto being successfulin your investments.Number twoinvest in what you understand.Buffett only investsin companies that he understandsand believes have stableor predictable productsfor the next 10 to 15 years.If you understandthe nature of the industryand how things operateyou'll be able to makemore informed decisions.Number threeinvest like you arebuying the entire company.Treat investing in stocksas though you arebuying the entire company.Always take a hard lookat the enterprise valuebecause this isthe total price of a company.In other wordsit is the priceyou would be payingfor the companyif you could buythe whole companyat current price.Number fourinvest in companieswith competitive advantages.Companies with pricing powerstrategic assetspowerful brandsor other competitive advantageshave the abilityto outperformin good and challenging times.A long term investing strategyrequires investingin companiesthat can weatherboth good and badeconomic times.The most successful companiesare the onesthat are agileand able to adaptand pivot when needed.Number fivefind quality companies.Believe in quality investing.It's better to paya fair pricefor a great companythan a low pricefor a mediocre company.Quality over quantity always.Number sixkeep cash on hand.Investment opportunitiesbecome availablethrough broad market correctionsor individual stocksthat become bargains.These are not predictable eventsso cash on handis an important conceptin value investing.However this worksfor large organizationslike hedge fundsbut for individuals like uswe recommend to investwhenever you havethe money availablelike a payday.Number sevenrequire a margin of safety.Purchasing stockswith a margin of safetybelow their intrinsic valuereduces riskand provides an allowancefor unforeseen negative events.Intrinsic valueis what a stock is worth.You could simply gowith the current stock pricebut that price is subjectto the market's whims.The intrinsic valueof a stockis its true value.It refers to whata stock is actually worth.Number eightLastlycompounding and patience.Understanding thatlong term value investingis believing the powerof exponential growth.Companies with substantial profitscan pay and growtheir dividends.So by following theseproven Warren Buffett strategieswe can all learnto be disciplinedto build more wealthover the long run.Make sure to alwayskeep these strategies in mindto improve and sharpenyour investment management skills.Now that we've gotthe principles oflong term investing coveredlet's talk aboutwhy long term investmentis one of the easiest waysto make money.When looking atlong term investmentsjust like Buffett saidwe want to studythe stocks that havea promising futurefor the next 10 to 15 years.ETF exchange traded fundsis what it stands forsuch as QQQconsists of 100 high tech stocksthat has the highest growth potentialwith a long term average growthof 12 to 15 percent.As we are all awarehow tech companieshave significantly changedour societyover the last 20 yearswe live in a worldwhere everythingcan be done online nowfrom ordering foodto buying clothesto socializing with peopleeverything can be donethrough the internetthanks to these high tech companiesso high tech companieshave paved the wayfor our daily normsand will continueto do so in the future.ETFs like QQQalways show an upward trajectorywhich makes it very suitablefor long term investment.Other ETFswith high growthare ARK by Cathie WoodTSLA also known as TeslaSQ SquareAppleAmazonand PayPalI won't go intoeach company's detailsbut definitely do some researchon your ownif you are not familiarwith these companies.As a reminderthese are purely suggestionsby CLECand you are obviously welcometo do your own researchin the industrysectorand productsthat you have a greatunderstanding ofas well as you canin the future.Thank you so muchfor joining usand have a greatunderstanding ofand invest thereif there isa promising future.So now that we knowwhat kind of companieswe should be investing inlet's talk aboutwhat exactly needsto be doneso you are on your wayto becoming a millionaire.Understanding the basic conceptis super crucialwhich is why we spentmajority of this videocovering that.The next stepis to figure outhow much to investeach monthin order to getwhere you want to befinancially.First and foremostlet's set upa goala realistic goalI encourage youto sit downand think aboutwhat is actually doableafter all of your expensesand how muchyou are willingand ableto put money asidefor your future.Once that goalis determinedyou will wantto pick the rightinvestment optionsto save in.Keep in mindthe options shown beloware purely suggestionsput together byCLEC expertsbased on riskversus reward analysisfor long term investments.Let's startSo essentiallythe biggest differencebetween these three optionsis the amountof returnand price fluctuation.So make surethat you pick the combinationthat best suitsyour comfortability.And that brings usto the end of this video.I hope that you have foundthe information presentedtoday helpful.The key takeawayis the sooneryou start long term investingthe sooner you willbecome a millionaire.The most important factorto achieving this goalis instillingthat long term investmentlong term mindsetand do notbuy or sell stocksfrequentlybased on the short termebb and flowof the market.Think of yourlong term investmentsas your retirement fund.You put your money into itand just don't touch it.Don't think about itor even check it too oftenbecause it will likelyaffect your moodseeing the ups and downs.And you have to rememberwe need to bejust looking forthe consistentover your growthlong term.So to sum everything uplong term investingis the easiest wayto make moneywhile you sleep.Just sit backand let the marketdo the work for you.You can finally relaxand reap the benefits.Remember the two graphs belowthat changed my life.Hopefully they willchange yours too.Thanks everyone.Make sure to subscribeto the CLEC YouTube channel.Check out the book listand inviteour investment articles.And if you like our contentplease give us a likeand followand share with your familyand friends.

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