Investing 101

@wealthbyamira

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Why it worked

The video provides clear, actionable advice for beginners on how to research stocks, breaking down complex financial concepts into simple, easy-to-understand steps.

Summary

This video explains three key metrics for beginners to research stocks: the 1-year and 5-year return chart, market capitalization, and the P/E ratio. Following these steps can help investors make more informed decisions and avoid emotional buys.

Structure

1Introduction to researching stocks
2Analyze 1-year and 5-year return charts
3Check market capitalization for company size and stability
4Evaluate the P/E ratio for valuation
5Conclusion on making better investment decisions

Product placement

Apple Inc. (appears on screen as a stock example, removing it would not change the video's instructional content)

On-screen text

Investing 101 How to research a Stock (3 simple steps) (Day 2) INVESTING 1. 1/5-Year Return 2. Market Cap Shows company size & stability. $10B+ = usually safer for beginners. 3. PE Ratio Under 15 = cheap/undervalued 15-25 = average 35+ = expensive/high expectations

Original caption

Investing 101 - Part 2 🫶🏽 Before buying any stock, check the long-term chart, the company size, and the P/E ratio. These three things alone can save you from emotional decisions and random hype buys. #PersonalFinance #financialliteracy #investing101 #stocks #investingforbeginners

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Transcript

If you're investing but you keep losing your money, you probably don't know how to research a stock. So let me show you three ways on how to research a stock. It's very beginner friendly. This is day two of investing 101. So let's use Apple as an example. The first thing you wanna look at is the chart, the one year and the five year return mainly. The five year return will give you a better picture of how the stock is doing. You wanna see in the chart if it has a steady long-term growth and does it bounce back after dips. Second thing you wanna look at is the market cap. Market capitalization is basically the total value of the company or how big it is. For beginner investors, it's better to aim for stocks with a market cap of $10 billion, known as blue chip stocks. Last thing I wanna check is the PE ratio, the price to earnings ratio. This is how much investors are willing to pay per dollar the company earns. Low PE ratio means it's undervalued and cheap, and high PE ratio means it has significant growth potential. These three things alone make you a better beginner investor. Stock.