On 7 June 2020, I’ve made a cumulative 500% to date (507% to be “exact”). In this video, I want to share my experience and my journey on how I got to 500% in 5 years.
This is an exciting, sometimes scary journey with a lot of bumps in between. Investing is not a straight-line (nor it will ever be). So here’s what you will learn in this video:
- How long does it take exactly to make 500% return?
- How many stocks does it take to make 500% return?
- What are the “investment vehicles I used to make 500%?
- What is the list of disasters that happened during these 5 years?
- What is my annual return?
- What are the 3 tips I would give to a beginner?
- Where am I going from here?
90% correct transcript:
So welcome back to my channel. And in this video, it's actually the 500% special. So the title of this video is how to make 500% return in five years from the stock market. Seven questions answered. So let's get started now, before we dive into the content of this video, I just want to celebrate another success within investing accelerator. So Daniel made 125% from Facebook within two months. So he entered during the Corona virus market crash because obviously he knows Facebook is a great company and using options. He made 125% and Daniel is the 10th student within the program to make a hundred percent from a single investment. So congratulation Daniel, I'm really proud of you. I'm glad you made 125% from Facebook. That's actually quite amazing in such a short amount of time to so keep up the good work and I look forward to your next successful investment.
So as of June 7th, 2020, I have made a cumulative return of 500% to date and it's actually 507% to be exact. So I think this is quite an interesting and amazing achievement. So I just want to share this with you and kind of go through a couple of questions that you may have when it comes to this return. So in this video, I'm going to answer these questions. How long does it take to exactly make 500% return? How many stocks does it take to make 500% return? What are the investment vehicles I use to make 500% return? What is the list of disasters that happen during these five years? And what is my annual return and what are the three tips I would give to a beginner when it comes to investing? And finally, where am I going to go from here?
So those are the seven questions in this video, so let's get started. So the first question is how long does it take to make 500% return? Now the exact date is here. January, 2016 is the date where I started using disinvesting strategy. And ever since January, 2016, I haven't changed my strategy significantly. So to date, which is June, 2020 20 which is approximately 4.5 years, I have made 500% return and around it up to five years. So as a catchier, a YouTube title. Now, when you look at investing return, it fluctuates. So this is the first time where my return crosses over the 500 Mark. So it will fluctuate within this range until it hits 600% return.
Now, how many stocks does it to make 500%? So during these five years, I invested in 21 stocks in total. So these are mainly medium to blue chip companies. And this is the top five stocks I have in my portfolio, Alibaba, Nike Starbucks, United airlines, and Activision blizzard. Now just FYI. I don't hold these stocks anymore. I exited them. I took profits. So I'm pretty happy with the return I got now, what are the investment vehicles? I used to make 500% now for me, I mainly use stocks and options for those of you who don't know what options is, you can just imagine is leveraged for versus not leverage. So I use both in my portfolio. So what's the list of disasters that happen during these five years. And this is actually a very interesting question because most of you are not going to ask this question. And it's a very important question when it comes to investing, because when you're investing in the market, you and I, and counter the same disasters and the same opportunities and the market is very emotional, which I do agree with you, but very fair as well. So you and I both encounter the exact same opportunities in the markets and our return can be Fastly different. So it's all about how you look at the markets, how you think about the market and what you do during a specific point in time.
So here is a list of disasters, Diane encountered, which I take advantage of. So the oil crash in 2016 to hurricane that destroyed the middle part of us in 2016, it issues with specific airline companies, seven 37 max grounding. That's another air airplane issue, change in regulation in terms of gaming industry for loop boxes, the failure and the drop of cannabis industry, the trade war, obviously with Trump and China and the oil crashed in 2020 20. And I forgot to add the Corona virus as well. So if you look at the time of which I'm recording this video for you, you'll actually realize that we are still in the middle of the coronavirus market crash, and the market actually dropped quite a bit earlier. So I made 507% in the middle of the crash as we are speaking right now.
Great. Eric, what is your annual return? And that's probably the most important question because when you're comparing my performance with the index or comparing my performance with other funds, what's important is the annual return number. So my cumulative return for the last five years or four and a half is 507%. And this equates to an annual return of 50.1, 2% a year. So 50% a year, if you rounded. So at this point, I just want to clarify for my investing strategy, I really look to make around 30% a year. Now, sometimes I'm at 50% a year, sometimes up at 40 something percent a year, and my investment return fluctuate. But overall, my goal is to make around 30% a year. And if I reached that goal 30% a year, then I'm happy. So it's pretty straight forward. Now in terms of investing accounts currently I'm a Canadian and I use TSA, which stands for a tax free savings account, RSP, which stands for retirement savings accounts, and finally regular investing accounts as well.
So when I'm calculating the return is actually more complicated than if you just use one single account. So when it comes to, what are the top three tips I would give to a beginner? Here are the top three tips. When you're investing in a market, whether you get your strategy from a book, whether you get your strategy from a forum, you need to know how much return you can expect. And that is critical because if you don't know how much return you can expect, you're going to either over estimate, the amount of return you can get, which you can get disappointed, or you under estimate the amount of return you can get. So then you're leaving money on the table. So for my strategy, I know that I'm supposed to aim for 30%. And if I get more than that, fantastic, if I don't and I get 30%, I'm happy.
And I think it's important to not rush when it comes to investing. You know, a lot of people are impatient when it comes to investing. When in fact investing is the only thing that requires time, time is the main ingredient when it comes to investing. So you need to let the market to come to you. And that's a fundamental mindset change for a lot of people because instead of chasing you or letting something coming to you so it's a more passive, it's a more calm state as a more patient mindset as well. Because when, you know, as you're going through life, you will realize a lot of things we need to chase for. We need to chase, we need to apply for a job. We need to take action to get it accepted in university so on and so forth. But when it comes to investing, you need to do the opposite instead of chasing for an opportunity, you need to let the opportunity to come to you because at the end of the day, you don't control the market, but you control your own action.
So you've got to make sure you make some good decisions and you need to give yourself some time to succeed. You know, I have met people, that's wanting to make a hundred percent tomorrow, want to make a hundred percent next month. And unfortunately that's just not going to happen. And if it does happen is not very consistent. So I think if you are a longterm investor, if you are trying to accelerate your wealth, it's important to give yourself more time to succeed. And when I invest in the markets, I always give myself sufficient time to succeed. So even know if I'm not always right and I'm 95% sure I'm going to win. I give myself more time. So I'm not in a rush. I'm not impatient. I'm not trying to make a huge return to Morrow. And I'm in a much better state because my decision making will be better as well.
So when it comes to investing in the markets, you want to be patient for sure. So I guess the question now is really, where am I going to go from here? And yeah, as we are wrapping up this video, it's important to set some goals. And I actually give this a lot of thoughts because once you reach a certain goal, the most important thing you can do is to set a new goal. And I like to set what I called break through goals. Like I want to set a goal where if I think about it, I'm very excited. I want to set a goal where it challenge it, challenges myself. I want to set a goal where I know I can achieve it, but is slightly out of my reach where I need to work for it, where I would grow as a person.
So that's why I want to share my goal with you. So my goal is really to make 30% return compounding. And today I'm at 500% return with half a million portfolio. And my goal is really to reach a thousand percent cumulative return in three years so that I can, I can hit the million dollar Mark. So right now, in terms of my life, I'm still at the capital growing phase. So I don't take any money out of my investment portfolio and just focus on growing it. And this is the plan, a very simple three step plan to make 30% each year and keep growing until I hit a thousand percent in return. And when you set ambitious goals, of course, you need to know how to get there, because if you have a goal, but you don't have a strategy, then you might as well not have a goal.
So as we are wrapping up this video, I just want to give you some food for thoughts, you know, how to speed up your learning, how to speed up your progress and some questions to leave you with. So do you know the return you should expect with your investing strategy? And if you do know fantastic, because now you can do financial projection, you know exactly how long it would take for you to reach a certain dollar value in terms of your portfolio. And this will help you with your retirement plan. Do you know how to manage your risk when it comes to investing? And this is a great topic, because right now we are in the middle of the coronavirus crash. Like if you look at the last 12 years or so, we have the 2008 crash and we have the 2020 20 crash. So if you know how to manage your risk, and if you're doing okay right now, then I think you're in a good shape because going forward, we don't expect another Corona virus market crash.
So the market will be going up from here. Do you know how to reasonably time to market? Now, this is quite controversial because a lot of people think you can knock time the markets for myself. I think you can I've been doing it for five years now, quite consistently. So do you know how to time to market? Do you know how to find opportunities where you're 95% sure you will win? And it mainly comes down to research and do you know how to multiply your profits? Most people invest in the market using stocks alone, which has no leverage. So you don't multiply your profits. Maybe it's time to learn something that will help you multiply your profits. So then you can make a higher return. So again, I just want to celebrate Daniel's success for being the 10th students within the program to make 125% from Facebook in two months.
So Daniel, his attempt student to make over a hundred percent from a single investment. So congratulations, Daniel. And my name is Eric Seto. And my mission is really to help people without a financial background, to target 30% a year from the market using an hour a week through a coaching program called investing accelerator. So if you want to learn more about how I invest in the markets, then you can attend a free webinar called how to get 30% from the market. And the link is five minute investing.com/free case study. And once you get there, just enter your name and email, then you'll be taken to a webinar page which it takes around four hours to go through. So this webinar is an absolute BS. So make sure you grab a cup of coffee, a notebook, and a pen before you start. Now, if you want to get more free contents from this YouTube channel, please click like subscribe and leave a comment below to see if there's any specific questions you want me to make a video on.
I would definitely consider it. And once you finish going through the webinar, then you can schedule a call with me to see if you are a good fit for the program. If you are a good fit, that will get you started right away. But if you're not a good fit, then no big deal and you can continue to subscribe to my YouTube channel. So that's pretty much it for this video. It's a very calm, logical video about how I made 500% in five years. And the key lessons I learned along the way. And I'm sure that in terms of the statistics, I show you, some of them are pretty surprising. Like the number of stocks I used or is the duration I held for, or is the investment vehicle I used. So if you have any questions, leave a comment below and I'll look at it and as are you. So I'll see you in the next video. So thank you for watching and I hope you enjoy the video. Please help support me by like subscribe and you can watch the next recommended video here as well. So I'll see you next one.