PAYtience…

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Well howdy there folks and welcome into tonight’s video i have some words of wisdom i want to kind of give to some folks out there today we’re going to talk about one key word today it’s patience and i want to explain some things around patience to folks uh this is a video that’s not only going to help newer investors to the market but this is actually going to

Help in advanced investors whenever uh the stock market in general is going through a rough time or any specific stocks i’m holding are going through a rough time there are certain things i draw back to and i kind of think about and um one of them is around patience so i want to share this with you guys here tonight exactly what i mean because there’s two different

Ways to actually think about patience when it comes to stock market i kind of want to explain that so i hope you guys enjoy this all i ask is that you smash that like button that’s it and appreciate you being here okay this i don’t know if warren buffett actually said this but this i just love and this doesn’t really have to do with the patient stuff we’re talking

About tonight but i did love this the new york stock exchange is the only store in the world where consumers sell stuff when it goes on sale i just appreciated that that’s just good stuff okay so patience if we look up the definition of patients as far as google what google gives us okay the capacity to accept or tolerate delay trouble or suffering without getting

Angry or upset patience uh i have uh two small children three years old six years old and i think anybody that’s a parent out there understands uh patience is not easiest when dealing with kids right and unfortunately for a lot of adults it’s still an issue patience adults sometimes are a little better than kids as far as learning patients but man i got to tell

You especially when it comes to stocks in the financial markets patience is troubling sometimes okay so what i pulled up here is i actually pulled up a long-term chart of tesla stock and i want to talk about tesla stock in a couple terms of patients here and kind of how to think about patients in regards to stock market so back in 2013 in a four-month span tesla

Shares fell quite dramatically they fell from 38 plus a share to 27 in a matter of just a few months like literally about four months that happened now back then i remember looking into tesla tesla was not the tesla you see before yourself today i can tell you that much tesla was this is pre-model three this was pre-self-driving any self-driving capabilities

This was uh their battery packs were not very advanced at all back then compared to where they’re at today the technology is not advanced they didn’t even have model x back then they didn’t have molex back then never mind model 3 model y cyber trek none of that okay not even a you know i don’t even know if there was a dream of that back then they had a model s

That they were trying to make a few cars of essentially and this was where tesla was at that stage now on that drop you could have said i’m going all in tesla right now right obviously would not have been a very wise decision there were a ton of stocks to make a ton of money in over that time and to just say you know then you were going all in i looked at tesla’s

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Valuation this is where valuation gets to be really really important i remember looking at tesla’s valuation back then it just wasn’t a deal okay and needless to say tesla did almost nothing as a stock for about six years now during those six years the company the underlying fundamentals of the company improved dramatically the company raised a ton of money over

That time elon musk proved himself a lot more over that time the company engineers proved themselves that the company launched and ran products over that time over that six-year span the company made amazing progress self-driving technology they did amazing things with underlying business and the stock price basically didn’t do a whole heck of a lot it went up

It went down and it went just about nowhere and so this first kind of talk about patience here this comes down to if you see a stock drop it does not mean that’s a great buy just flat out if the valuation lines up and you’re looking at the company for where you think net income is going to be in three years and revenue and those sorts of things if you’re looking

On any type of 4p basis or even a price to sales metric type basis and you’re looking and the stock looks like a deal then it is a deal right if you run the the valuations and where you think that business is going over the next the next let’s say three five years it makes sense it makes sense to buy right but i can tell you that was not the stage that tesla was

At back then so just throw money in it not the best decision back then all right so moral of that story is you can’t just go crazy right off the bat when a stock initially drops you got to make sure the valuation’s right right now the second part of patience is actually when i got in the stock so when i got in the stock it was mostly in 2019 and the company was

At a very very different stage at that time they were ramping model three there was all this talk about oh they were going to go bankrupt it was a com you know a bunch of bs that was just put out there by the short sellers to try to get i don’t know the stock price down to zero so maybe they could actually go bankrupt and couldn’t raise any money it was absolutely

Ridiculous but they were rampant cars they had unbelievable self-driving technologies their battery packs were getting more and more advanced their cars in general getting more and more advanced and it was clear by this stage that the world to me at least was going toward evs right i mean by this time you start having more and more big auto manufacturers saying hey

We’re actually going to take this ev stuff serious we’re investing 10 billion dollars over the next blah blah blah years right 2013 2014 it was not like that now it was meanwhile the stock had done nothing it was even down trending and so when i looked at this i didn’t when i got in it the stock went down i didn’t say oh the stock’s going down so now i got to sell

Out of this i was patient with this baby and you want to know what i actually did the whole time while i was going down throughout pretty much 2019 was i bought more and more and more shares of the stock as it went down this is uh the public account alone public account alone i averaged down on tesla eight times eight times back then okay now back then i didn’t

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Have as nearly as much money as today so the positions were smaller also when it came to tesla i didn’t go as big as i should have went in regards to tesla back then i could have definitely been buying in the five thousand dollars to ten thousand dollar range per time and most of the buys were anywhere from two thousand dollars to right here was the peak a fifty

Seven hundred dollar buy all at the same time right and i looked at this and i’m like the stock keeps going down the company fundamentals are amazing the valuation for where i think this company’s going over time is is the stock was very very undervalued right and so just in this account alone i averaged down eight times from where i first bought i first bought

I thought it was a good deal at 54.59 i thought i’m getting a good deal on stock i think i’m gonna get some great appreciation over the next five ten years right and uh it just went down and down and down all the way to hero 3770 those are the lowest there right eight times i was patient and i took advantage of the deals and i didn’t trip off of the short term

Stuff and did i take a lot of flack in the short term being on youtube uh talking about tesla stock absolutely people saying tesla was going to go bankrupt people saying tesla stock was garbage stock people telling me quit talk about tesla no one cares about tesla blah blah blah well there were some people that stuck it through and um you know the rest is history

Eight times in just this account i bought after the stock just kept going down and down down patience patience okay now i want to give you an example of a stock i was not patient enough on and that’s elf beauty so elf beauty i still hold a thousand shares of this stock and we’re up 310 on this stock but the truth is i got too impatient around elf beauty cosmetics

Company this is a company that was doing an amazing turnaround and i was all for it and i was so excited about it and i you know ran all the numbers and i’m like oh my gosh the stock is so undervalued blah blah blah and the stock did nothing but go up and up and up pretty much from almost exactly after i invest in it until you know the rest is history right and i

Sold and i sold and i sold and i sold and i was so impatient and if you run the numbers on a lot of these shares the majority of these shares if not all of them were sold under 20 dollars a share i took way too much in profits way too soon and all these shares that i sold were all short-term gains which means i had to pay my actual tax rate so i don’t know what

I was paying in 2019 tax year maybe i paid 30 something percent so i had to pay 30 something percent on all these gains just the federal government right for those gains and so this is a good example of a stock that i believed a lot in everything worked out but i got way too impatient in terms of like i just was looking at too short term of a perspective and i’m

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Like oh it’s gone up a lot let me take profits take profits take profits take profits and i look at all these profits i took over those you know months look at the dates sold you know always from basically may 20th of 2019 all the way till uh you know november 12 2019 all those profits take it and for what like i should have you know stayed patient with that one

Right and i didn’t and um all the stocks done has been a more and more of a beast over time and i could have just been patient with it could have ended up taking longer term gains or just holding those dang shares okay so i just was not patient enough with elf beauty so this runs us up to today which the two stocks that i’ve been you know obviously investing a

Ton in for the last few months plan to continue to and i’ve been getting destroyed on is tattooed chef and corsair and i shouldn’t say destroyed because i’ve been down a lot more than this on stocks before i can tell you that much okay down 9.97 in my main position in the private account right and then corsair down 15 i can tell you i’ve had a lot of stocks before

Where i’ve been down 20 25 look at those remember those tesla shares i pulled up earlier um run the numbers on that 54 dollars and here i’m buying at 37. uh that’s a whole lot more than 9 or 15 down from where i initially started buying right so when i look at like tattoo chef corsair gaming i have all the time in the world on these now a short seller you know

They obviously have limited time right they need this stock to go down as much as possible as soon as possible for me if this stock doesn’t move for a month six months 12 months 18 months it is what it is i am fully confident in the companies and their fundamentals underlying and the valuations they’re at that eventually these stocks will move and move in a massive

Way when that happens i can’t tell anybody on a short term basis okay i just can’t like no one really knows no one but the fact is i’m super confident in these and so i’m going to stay patient with them if they continue to go down i will make the shares bigger and bigger and then when they do make their big upward moves which i’m fully confident they will i just

Don’t know when i will make sure i stay patient with those and make sure i don’t do like i did with the elf beauty and take way too many gains way too soon these stocks continue to go down i’ll be patient i’ll add more and that will be that patience is key in this game guys patience is absolutely key and don’t ever forget that okay so hope you guys enjoyed this

Video as always if you’re looking to download everything i possibly know about picking stocks value in stocks running portfolios everything like that check out the pin comment down there that will be to apply for the private stock group the private discord chat everything like that much love as always guys and have a great week

Transcribed from video
PAYtience… By Financial Education

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