Beginner's Mind

#90: Brian Feroldi - Why Does the Stock Market go up?

October 31, 2022 Christian Soschner Season 3 Episode 31
Beginner's Mind
#90: Brian Feroldi - Why Does the Stock Market go up?
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Do you understand the dynamics of the stock market? Here is an episode with Brian Feroldi, Writer at the Motley Fool, on his new book “Why the stock market goes up?”

We are talking about
⭐ The Global Problem With Financial Literacy
⭐ Why Did Brian Feroldi Write a Book About Investing for Beginners?
⭐ Why Does the Market Crash from Time to Time?
⭐ Cost Averaging and Index Investing – A Powerful Tool for People who don’t have time to diligently follow the market
⭐ What was Brian’s Biggest Investment Mistake?

A basic understanding of the stock market is mandatory for every deep tech entrepreneur, business angel, and venture capitalist. A stock market is a place where companies can get more liquidity for scaling their business and provides an exit for early investors.

Brian Feroldi describes the mechanics of the stock market in his latest book: Why does the stock market go up? I enjoyed his unique way of explaining complex economic situations in easy-to-understand layman’s terms.

Brian Feroldi is a financial educator, YouTuber, and author. Since college, he has been intensely interested in money, personal finance, and investing.

⭐ EPISODE Links:
Brian Feroldi on Youtube
Youtube Video

📖 Quotes:
(05:31) "A lack of financial literacy is a global phenomenon"
(14:50) "...it took me about 18 months to write it. ... I think we needed a book that explains in plain English what the stock market is - for beginners."
(16:11) "If you look back on stock market history - it is very clear: Every ten years ... or so ... things go to hell!"
(33:00) "Only Business Profits drive the Stock Market in any given direction"
(43:53) "Investing in an Index Fund is totally fine for 99% of investors because they have no interest in reading SEC filings or doing research."
(01:08:00) "Think Long-Term"

⏰ Timestamps:
(00:00) Introduction
(01:52) Why Deep tech Entrepreneurs Need a Basic Understanding of the Stock Market.
(04:00) Brian Feroldi's studio
(05:17) The Problem With Financial Literacy
(06:35) How Brian got Into Investing?
(08:00) The Motley Fool
(10:05) Why Did Brian Feroldi Write a Book About Investing for Beginners?
(15:00) Reflecting on the Tech Market Correction in 2022 and Other Stock Market Crashes
(19:19) The 2000 and 2008 Crash Experience
(23:20) Why Does the Market Crash from Time to Time?
(27:50) Crowd Mentality, Market Timing, and Contrarian Investing
(32:55) The 3 Major Forces That Drive the Stock Market Up
(36:55) Why Should People Invest When Fear, Uncertainty, And Doubt are on the Market?
(39:32) What were your biggest questions when you started investing?
(43:25) Warren Buffetts S&P500 ETF Strategy for People who don't have time for market research
(45:23) Cost Averaging and Index Investing – A Powerful Tool for People who don't have time to diligently follow the Market
(48:00) What is Compounding?
(51:11) What is the Magnitude of Stock Market Fluctuations
(55:05) Brian Feroldi's on Cathie Wood's Ark Innovation Fund
(01:00:00) What was Brian's Biggest Investment Mistake?
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(Cont.) #90: Brian Feroldi - Why Does the Stock Market go up?