Today, I will teach you a whole new way to invest your money.
Hello, this is Jia. I’m so happy to be back on YouTube after all these years. I know I look a little bit different now. Probably better. Well, you might have known me as the rejection guy who did 100 days of rejection therapy. Maybe you read my book Rejection Proof. Maybe you watched my TED talk on rejection.
And guess what? My channel is not about rejection anymore. It’s about teaching you how to invest your money and time in a way that gets you the highest returns and most fulfillment. Frankly, I think this is a better topic. That’s why I’m so excited. And today, I will teach you a whole new way to invest your money.
Over the past 10 years, I’ve developed a simple but radical way to invest called Love Investing. This strategy gives me an annualized compound return of 24.65%.
Do you know what that means? Over the same 10-year period, I’ve more than doubled the return of S&P 500 cumulatively. Now, these are just numbers. But investment is not about numbers. It’s about life.
My investment has enabled me to take some chances in life. It has enabled me to invest in entrepreneurship and make tough decisions for my career and my family. And it has even enabled me to buy houses in some of the most expensive real estate markets in the world. And I would not have been able to do this without love investing. More importantly, it gave me a sense of freedom and mastery. I know I’m in control of myself financially. And I know if in the future, I don’t do anything or take a lot of chances, I’ll be okay.
In this channel, I will teach you this investment strategy and all kinds of related topics. If you enjoy this video, do two things.
- Like the video and subscribe to the YouTube channel.
- Subscribe to my newsletter. I write one newsletter per week talking about my thoughts on investing money and time.
Most of my videos and writing are against everything you will hear from the mainstream financial media. It’s pretty funny. You will like it.
Now if you’re a Wall Street guy, maybe you got some complicated financial models built by a NASA scientist with artificial intelligence and holding a data-shooting bazooka, maybe these videos are not for you. Well, actually, I take it all back. Even if you were all that, I bet if you invest the way I teach you, like everyone else, you can be a better investor.
Now if you’re an everyday regular person, meaning you got a normal job, you got two eyes, one nose, and you’re not a total weirdo, drop everything and watch these videos. You will never see investing the same way again, and you will not only beat the market, but you’re also going to crush it. I’ll prove it to you.
Before I start, I want to clarify that love investing is about investing in stocks. There are all kinds of ways to invest your money. You can invest in real estate, cryptocurrency, bonds, and sports cars. And I personally know someone who invested in old VHS tapes.
Even with stocks, there are all kinds of different ways to invest. There’s passive investing, active investing, you can do growth, value, you can invest domestically or internationally. But let me tell you, although you can make money investing in all kinds of things, love investing is the best. It’s the best in three ways.
One, you’ll understand what you’re investing.
Famous investor Peter Lynch once said, “You should only invest in things you understand.” But most people think the stock market is like a black box, it’s so mysterious that you can’t understand it. Therefore, people put money into things they don’t know. And they just hope that by luck or magic, it’s going to go up, and even when it does go up, they don’t know when to sell to take the profit. If they sell too early, they can leave money on the table. If they sell too late, they can lose all the profit. To them, investing is like gambling. Most people lose money on gambling. And even if they succeed, they can’t repeat the process twice or three times. They can do it consistently because they don’t understand what they’re doing.
Love investing, on the other hand, is the most intuitive way to invest. Not only you will understand what you’re doing, but you’re also going to live it. You will integrate your investment with your lifestyle. You will understand these companies better than some of the Wall Street analysts and guess what, even better than some of the people who work at these companies that you’re investing in.
Two, it’s the most fun way to invest.
I love having fun. You’ll probably realize that by now. I love having fun. But most people think investing is like a mental game that involves numbers and charts and bars and tickers that go up and down. You’ve got to be a math genius to make money from stocks.
Is math fun? Let’s take a look at how people talk about stocks in some of the financial channels.
I mean look at these people, it looks like they had bad yogurt and tried to hold it in while talking. To them, investing is a necessary evil for them to make money. But where’s the joy in this? On the other hand, love investing is all about having fun. It requires no complicated financial and math knowledge. You don’t need an Ivy League degree. If you can do basic math like division and multiplication, like if you know one divided by five is equal to 0.2 -It’s 0.2, right? I think it is. If you know that, you will be okay.
Let me tell you a secret. I don’t like math.
I mean I’m okay with it, but I’m not… I don’t like it that much. I know I look like a financial genius. And I probably dishonor my family by admitting to this but I don’t like math. I don’t like numbers.
But in love investing, you never touch the financial stuff. All you need is your heart and intuition. In fact, it is likely the only investment strategy that relies on your right brain, which represents creativity, heart, love, emotions, fun, instead of your left brain, which represents analysis, judgment, logic. It goes against everything you have been taught about financial literature and investment, but it’s so much fun.
You’ll become the part-owner of some of the greatest companies in the world. The companies you love, you’re still going to spend money on them, but the money you spend will actually make you money. I’ll explain to you later. It’s magical. It’s awesome. I love it. I love it. I love it!
And reason number three, love investing crushes the market.
Most people nowadays will teach you to passively invest in index funds, like the S&P 500, which represents the overall market returns. If you go to any of the other financial channels, YouTube channels, they’re going to sell you on the gospel of index funds. They will tell you index funds are the smartest and safest ways to invest. You get to invest in 500 companies instead of 1. 80-95% of the active traders underperform the market. So instead of trying to beat the market, you should just try to invest in the market, blah, blah, blah. And if you dare to tell them that you can beat the market and you don’t believe in index funds, they’re going to try to crucify you.
Let me tell you another secret. I hate index funds. I think they suck.
Okay, as I mentioned earlier, over the past 10 years, I’ve accomplished an annualized compound return of 24.65%. The cumulative return has more than doubled the S&P 500. And by definition, if I were an index fund investor, I would not have accomplished this, and I would not have started this channel. And by the end of this video, I’ll break it down even further. But just you know in the long-term love always crushes the market.
Okay, you’ve heard a lot about how awesome love investing is. Right now, you’ll be like, yeah, okay, this is awesome. What is this? How do I do it? I mean, if you’re not asking this question by now wake up, get a caffeine infusion or something.
You should want to know, is this some secret formula? Did it come with a scroll that came from ancient Israel? Do I use AI? No. Love investing is actually very simple. You buy and only buy the stock of companies you love in your personal lives, and you buy 10 to 30 of them. You hold on to them, for as long as you still love them. You ignore your calculation, your urge to outsmart the market. But instead, you rely on your emotion and your intuition to guide you in new investment decisions.
And if you do that over the long term, you’re going to be a very successful investor. And you can make a lot of money. That’s it. It sounds very simple, but it’s true. Now, there is a lot of discipline and execution that’s required to do this right. And I’ll show you how to do love investing and succeed in the long term in the next video, but the principles are as simple as they get.
You might think this is crazy. You might be wondering, how do you double the market by investing like this? The reason is simple. If you’re a normal person, you’re not some sort of weirdo. If you love a product, millions of other people will also love the same product, same company, and the ability to make products that people love is the number one indicator of a great business and to be a great business is a number one indicator of long-term stock performance. And this information will be your number one advantage when you make investment decisions.
Being a loyal customer of a company is like having insider information. And it’s better than any insider information the Wall Street guys can come up with. Still don’t believe me? Let me show you some proof. Every year my readers will enter a contest by listing their top 10 most loved companies in real life and we’re going to track a hypothetical portfolio of these stocks and we’re going to compare them to each other and to the market. And based on their input, we’ll come up with the most popular 10 companies of all my readers, we put them together into a portfolio. It’s called the Top 10 Love Portfolio. TTLP.
We’ll update this every year. We started the contest in October 2021. Apple, Amazon, Google, Microsoft, Disney, Tesla, Netflix, Costco, Facebook, and Spotify. Here are their average returns for these 10 companies which were more than four times higher than the S&P 500 over the past five years.
You can see these are some of the most well-known companies in the world. In fact, if you look at the S&P 500 list, if you rank them by market caps, which is the size the companies are, these, the top six companies, are all love companies. There’s a direct causal relationship here. People love these companies and their stocks go up and up and they become bigger and bigger and now they’re the biggest in the world.
Now there’s a caveat. Investment is forward-looking, not backward-looking. So, I can’t just tell you that the TTLP has outperformed the market for the past five years. Because five years ago, the TTLP might’ve looked different. That’s why I want to look into the future to see what will happen in the future versus in the past. When you compare performance, you have to do it in real-time. You have to track it month to month, week to week, or day to day. That’s why earlier I showed my real returns that were being tracked month to month by my brokerage firm.
Those are the real data. On top of that, starting in January 2016. I started doing my own tracking. I plugged my own numbers into a spreadsheet and tracked it week to week. I wanted to see how my love portfolio would do against the S&P 500 and this is how it looks like.
You almost double the market returns for the past five years, and going forward, we’ll be doing the same thing with the TTLP, the collective top companies put in me by my readers.
If you go to the Love versus Market page, you can see real month-to-month data comparing the TTLP against the market. Win or lose. I’ll make it all transparent and public. Where do I get all the confidence? Well, the reason is simple. I believe in love, and so should you!
If you enjoyed this video, please do two things.
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I love making these videos and I love writing the newsletter. I love, love investing. I love it. I love it. I love it!