Hey what’s going on guys, it is Fisayo here
and in this video I’ll quickly show you how to invest in US stocks from Nigeria. What you should know before you do invest,
and how I am investing in the US Stock market. If you’re new to the channel, welcome and
if you’re returning welcome back, I’d love it if you could give this video a thumbs
up so more people can benefit from this video. Without further ado, let’s get to the video. If you’ve been following my Finance Friday
series of videos. You’ll know that around this time last month,
or 1 month ago. I made a video about how you can save money
faster, I highly recommend you watch that video, but if you have, you’ll know that
we invested $1,000 into some stocks right in that video. Spread across 5 stocks exactly and I also
added a last stock I invested in, which I’ll talk about later. In this video, I just want to give you guys
some update and also continue on what I started. This is a portfolio for the YouTube channel
and the finance Friday series so I said I’ll be investing $1,000 every month and we’ll
see how that does, we’ll both analyze it on the channel together on the finance Friday
series, we’ll also see the results, who knows, maybe in a year’s time, we can see
if we gained or… or if we lost.
The first thing you want to know what is your
reason for investing. Before I move on, I want to say that this
video is for education purposes, I’m not qualified to give investment advice so these
are sort of risks I’m taking to show you guys as an example. So why are you investing? Well, according to an article from Royal Bank,
Owning stocks can help you build your savings, protect your money from inflation and taxes,
and maximize income from your investments.
They are risky and you should only invest
in what you understand and the portion of income you don’t need for emergency purposes. So still on the article, the first part is
about Building your savings. Just like I mentioned in my previous finance
Friday series, I talk about how, this year, I was able to save only around $20,000 in
the first 6 months of 2021. I highly recommend you watch if so you’ll
get some sense of how you can save more money. In that video, I talk about one way you can
save money by investing in stocks which is a more advanced way in a sense. It is known that stock prices tend to rise
overtime so saving your money in an asset class that might actually go up in value is
super beneficial and can pay off in the long run.
Although, the stock market fluctuates a lot,
you don’t want to treat this like you’re gambling, you actually want to take a long
term view. If you look at the charts of many strong companies
or corporations, they have historically risen or smoothened out over a long period. Also, this idea of growing your money can
infact help you stay protected from inflation. I know I sound like a broken record but I
also made a video about inflation and everything you need to know about inflation in Nigeria. We all know how the Naira has gone from the
300 naira to a dollar all the way to 500 naira to a dollar this year. Apps like Barter which I use to pay for my
video editing software will now charge me 511 naira for 1 dollar. So you see, my cost of living has gone higher. If my video editing subscription was 17,500
before, it’s 25,500 naira now.
The dollar price did not change at all but
because I earn naira, I am forced to pay more for the same value. There are also some companies with stocks
that pay you dividends, which is a distribution of a portion of the company’s profits to
shareholders like you, for having shares in the company. Not all stocks will pay dividends but some
do. Okay, so how am I investing in US Stocks from
Nigeria. I’ve covered this, I think twice on the
channel now but now, there are many apps like Bamboo which I’ve talked about on the channel
before, there are many others as well but the one I’ll be using is Trove. I used it in that previous video about saving
and investing to invest an initial $1,000 so I’ll be doing that again in this video. Trove let’s you invest in publicly traded
stocks in Nigeria, China and the US. You can get access to stocks, ETFS, REITs
and bonds. You can fund your account easily with Naira
or dollars and that’s just what I did in that previous video AND fun fact, if you download
the app with my link in the description, you get a free stock from GTBank or Dangote Sugar,
just like I did.
So how did the initial $1,000 I invested in
the last video do? Did I “lose” it or did i gain? If you’ve gotten to this part of the video
and you’re finding it useful a like would mean alot and you’ll also help more people
discover this video in the process. Okay, so here’s how the portfolio did. I initially invested $200 or $198 in each
of them, because Trove takes a 1% service fee, it’s more from some brokers but essentially
this is how they make money by helping you execute your trade in the US Stock market. I bough the same amount in TESLA, Facebook,
Google, Amazon and Apple, I invested in these companies because they are all tech companies,
I’ve been involved in technology for almost 5 years of my sort of professional career
so I kind of have a fair knowledge of how these companies operate.
Again, you want to invest in quality companies
that you understand and you have reasons to believe their brand values. I also did invest in the S&P 500 which is
what is called an index. Think of it like a basket of stocks and this
basket consists of the top 500 companies in the US. I invested $192 in here. So now, I’ll add $200 into each and everyone
of them again and this is practically what the portfolio looks like now. Join me same time next month for the update. But really, investing in the US stock market
is a way of sort of future proofing your cash, rather than letting it stay in a bank account
and letting it get bank charges and more. Trove is one of the apps that lets you invest
in the US stock market and fun fact.
I interviewed the CEO of Trove, I’ll leave
a link below to watch that video. I didn’t include all the things we talked
about because that video was already too long so I’ll also add a couple of things he mentions
as well. I asked him about who should invest? How much should anyone invest? The things anyone looking to
invest should know and why. That was
the CEO of Trove, you can also watch the interview I did with him
with the link in the description. Again guys, this video is more for the purpose
of education let me know if you found this video useful and if you did, please give it
a thumbs up, feel free to ask any questions you might have about investing, I’ll be
in the comments chatting with you guys, thank you for watching, I’ll talk to you in the
next one..
