The Stock Market For Beginners 2021 | Growing in Investing Wisdom | Rob Armbruster | Skillshare

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The Stock Market For Beginners 2021 | Growing in Investing Wisdom

teacher avatar Rob Armbruster, Investing and Personal Finance

Watch this class and thousands more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

15 Lessons (58m)
    • 1. Introduction

      1:19
    • 2. Growing in Confidence

      2:26
    • 3. Finding the Right Broker

      2:12
    • 4. What is a Stock

      2:47
    • 5. What is a Dividend

      4:28
    • 6. What are the Risks

      3:44
    • 7. Finding Company's Strengths

      2:55
    • 8. Finding a Company's Weaknesses Final

      4:40
    • 9. Defining Opportunities

      3:25
    • 10. Defining Threats

      4:00
    • 11. The Circles of Influence

      8:18
    • 12. Shopify Stock Highlight

      6:12
    • 13. BP Stock Highlight

      5:35
    • 14. Humana Stock Highlight

      4:19
    • 15. Next Steps

      1:49
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About This Class

We live in a time of we have access to never-ending amounts of information especially in the world of investments. This class will give you a framework to interpret what an investment is doing and invest with confidence. I also included examples of three stocks that have been highlighted for me in 2021 and show you how I researched them.

This class will teach you the following things:

- What is a stock

- Finding the right broker

- What is a dividend

- What are the risks associated with stocks

- How to determine an investments strengths

How to determine an investments weaknesses

- How to determine an investments opportunities

- How to determine an investments threats

- What influences stock price

- Stock Highlights for Shopify, BP, Humana

This lesson is not considered licensed financial advice. It is purely for educational purposes to help you to manage your own investments. Future trades that you make are done at your discretion.

Meet Your Teacher

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Rob Armbruster

Investing and Personal Finance

Teacher

When I was 24 years old I was sitting in an office with a financial advisor. After he showed me the fees associated with him investing my money, I left the meeting feeling uncomfortable with his proposition. This is how my investing journey started. I began to research how to successfully manage my own investments and found that it was easier than I thought. Today, I'd like to pass on what I have learned over the past seven years of managing my finances to you. 

I have a passion to help people from every race, ethnicity, and background discover their ability to make great wealth! My classes provide the basic fundamentals of making great long-term financial decisions. Please follow this page so that you won't miss any of the great resources coming out in the future!

... See full profile

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Transcripts

1. Introduction: Rhubarb rooster here, and I'm so excited to bring you this class. Will the stock market for beginners in 2021? We live in a time where there's an abundance of information about stocks, about investments. But what we all need as a framework to interpret this information and put it into a strategy. And that's where this class comes in. This class is focused on the rowing. Your confidence in investing. It will teach you what a stock is, where the money goes. I'll show you what the dividend is. Also talk about risks when investing in stocks. Then I'll show you how to analyze and investments, strengths, weaknesses, opportunities, and threats. And I'll end the lesson by going over three stocks that were highlighted to me, how I found the information on the stocks, then why I'm choosing them in 2021. I'm so excited for you to be able to learn the skill of applying your own wisdom to be able to invest in stocks well in the future. And I can't wait to see it in this class. 2. Growing in Confidence: All right, so in this lesson, I'm going to show you how to grow in confidence when it comes to choosing your own investments. Say farmer Bob uses his wisdom that he has about seeds to invest in seed companies. Ten years later, farmer Bob's life has changed because now he doesn't have to worry about if his farm gets a good crop or a bad crop, He's generated this other source of income towards him that supplements what he's doing on the farm. That is the same thing that's going to happen to you, is you actually have wisdom and unique expertise that you can use to build an account to bring you increase in the future. It's, it's amazing. There's a unique expression of investments that you have specialty in. And it's just a matter of finding them and learning about them. And learning about the principles that I'll teach you in this class. You have to see yourself as the hero of your own investments. One thing that people very often struggled with when they're just starting out with their investments, is actually knowing the significance of starting a lot of people that they say, You know what, I only have $500. So I'm just not going to even start. It's not worth it. It won't, it won't make a difference. But I would encourage you as you get started. Don't despise small beginnings. See your beginning as a small start to something that can grow big and change the course of your life. It really is true that every dollar that you put towards your future in investing is significant. Everything that you choose to set aside from today and you say, You know what, I'm not going to buy anything with this, but I'm actually going to save this and invest it. Every time you make that decision. It is significant, even if it's $10, even if it's $500 that you're starting out with, just gets started, the best time to get started today. 3. Finding the Right Broker: So you may be asking yourself this question, what is the best broker to use for my investing account? How can I get access to these different stocks that I'll be showing you later in this lesson. I wanted to show you real quick right now, just some recommended brokers, both for you, we're Americans and you who are watching from around the world. So the first one is Robin Hood, and Robinhood is probably the most popular broker at this time. Here we are on the sign-in page. They trade both cryptocurrency ETFs stocks, and they do it all with no fees. This is a great platform also because it really is great for beginners or people who you don't know a lot about trading stocks. And they have a lot of great organizational information for you to help you be able to trade. So there's Robinhood. Now for those of you who are in Europe, there's this great platform called degree 0 and the good or it's available in these countries right here, as you can see. So if you look here, I'll just click on this United Kingdom one, it has over 1 million clients. So you know, it's a legit broker here and they have incredibly low fees. Probably my favorite broker. It's only available in the United States, but this is fidelity right here. And fidelity is just awesome. Now one of the advantages also to fidelity over Robinhood for those of you who live in the US, is you can open up a retirement account, a Roth IRA with fidelity, which gives you certain tax advantages. Fidelity is a great option. I actually have an account with both Robinhood and fidelity because that gives me kinda the best of both worlds with investing. Just choose the right one that fits for you. Choose to start and hop in there and begin learning and begin trading. 4. What is a Stock: In this lesson, I'm going to teach you what a stock is and define it. But most importantly, explain where the money goes when you make each investment, a stock is an ownership stake in a company. So what happens is companies issue stocks in order to raise money for them to be able to buy new assets, for them to create products and conduct their business. The reason that a stock is an investment is that you're giving money to the people who are part of the company. In the end, their job is to grow the company and increase the value of your stock. At the end of the day, stocks are all supposed to increase in value because each group of people that you're giving this money to is on the same mission as you are. They are looking to grow, they're looking to increase. They're looking to create great products that help people. When you understand that it begins to, begins to start to make sense of, oh, stocks are an investment and they're, they're a legitimate way of bringing increase over time to your finances. What determines the price of each share of stock? So great question, because there's a lot that goes into this. But at the end of the day, the share price of a stock is what a person outside the company is willing to pay to buy an ownership piece of that company, the price fluctuates based on the perceived value of that company in the future. If, say, a news article comes out and says, Tesla's factories are subject to new regulations. Nothing will have changed with the company. As a result of that news article, the price of the Tesla's stock goes down. On the other hand, you can hear news about, hey, this company has reported this much earnings this quarter. It's higher than what we expected. And what happens with those stocks is the price increases. So it's actually not the company that determines the price. But at the end of the day, it's you and me, the people who are willing to buy the stock determined the price. So keep that in mind as I continue to teach you about stocks in this lesson, because that's key to remember. I'm really excited for this next lesson because I'll be teaching you what a dividend is. 5. What is a Dividend: A right, get ready to learn what a dividend is. This is a very distinct advantage that you get for being an owner of a stock. Dividend is kind of like a thank you. Note that accompany rights you for owning a share in their company. But instead of just saying thank you, what a lot of companies do as they offer a small piece of their profits for you to be able to have. Last week, I just earned a dividend of $1.30 and I hadn't done anything. That might not seem like a lot. But as you get to own more and more shares, the amount of your dividends starts to add up. And there's actually people who they don't have to work at job anymore because they make so many dividends because they're getting somebody thank you. Notes from the stocks that they own. Let me show you a couple of dividend stocks here and Robin Hood. So the first one is Home Depot. The way that I see that this stock has dividend is I go down and look at the key statistics. And if the stock has a dividend yield, then it receives a dividend. Home Depot is a nice stuck. You may have heard of a company based in Atlanta, Georgia and they have a dividend yield of 1 95 percent. That means the dividend amount is 2% of the amount that you own in the stock. And so right now, I own $244 in Home Depot. So my dividend ends up being about $5 per year. As, as I increase this, it's going to increase more and more. So another company that has great dividends is British Petroleum. You may know them as BP, where you get your gas. They have, right now they have a dividend yield of 4.6%, which is awesome. It's amazing. So that means 4.6% per year on top of any gains that the stock has. The other thing about dividends is they're issued quarterly. So every company reports their earnings every quarter as a part of being a part of the greater Stock Exchange themselves. And so they must report how much money they've earned. The companies that choose to issue dividends, we'll do that four times a year. I've set up my stocks to take all dividends that they earn and reinvest them into those very companies that I've selected. It even gets the ball rolling even faster and faster as you begin to invest even more and more, how do you find the dividend yield? You add up each dividend that's been issued for all of the past four quarters of the business. And you get the yearly total of what the dividend is. And then you divide that by the price per share. After you divide by the price per share, that in and of itself is the percentage. But in order to show it as the dividend yield, you go ahead and multiply that by a 100 to be able to be the equivalent of that dividend yield that I showed you with Home Depot and BP. That's definitely something to keep in mind as you invest, is, does this stock have a dividend? Now some companies will be focused on a dividend. Some companies will be worth it to purchase, even without a dividend. Because of the rate of upward growth happening with the company, it's definitely an extra bonus and something that attracts me and should attract you to them. Let dividends attract to you. If there are too small to attract to you, then be like, alright, nevermind, Let what they are attract you to that stock. As a part of the overall benefit of being an owner in that company. Stick around for the next lesson coming up, I'm going to talk to you about the different risks of investing in stocks. 6. What are the Risks: In this lesson, I'm going to help you understand the risks of investing in stocks so that you can see them rightly invest with confidence, but also have an overall piece with the way that you invest. The first thing to understand about investing stocks is you can only lose the money that you are actively invested. I've had different comments from different students of mine asking, what if they get a hold of my checking account or my house or things like that, none of that can happen unless you borrow the money to invest in, instead of use the money that you've already earned to purchase different stocks. And so that's why I recommend doing that. Only use money you've already earned to invest. Honestly, a lot of the stories that I hear about people losing money are not people who have invested in stocks and ETFs. There are actually people who have invested in futures and commodities which are a higher risk than stocks and ETFs. What a futures contract is, a contract betting that a stock will be a certain price. So when you get into future contracts and futures, it's more becomes bedding, which gives you a greater chance of loss. Also, it draws a lot of people in because there is a great chance of gain to, I actually choose for my account not to vest in futures, say I was to invest in Apple, that would be considered a very stable investment. What are the chances of something bad happening to Apple? Not very good because they have great products. A lot of people like to purchase what they may. Some of the best marketers in the world work for Apple. So that is an example of a really strong company. If I was to ask you this, answer this question, do you think Apple will be around 30 years from now? And if your answer is yes, then chances are the company will have grown from now to then, prices in stocks and do fluctuate. Again based on the perceived value of the stocks. Sometimes they may go down, sometimes they may go up overall in the long run, stocks are going to increase. Here's a great example of the increase that comes with stocks would be in S and P 500. This is what the S and P 500, the 500 biggest companies in America, has done over the past five years. And you can see here where it does go down and it does fluctuate downwards. Like in 2018, there was a little bit of a downturn in the S and P 500. And then you can see here with the coronavirus in 2020, the S and P 500 went down in value. Overall. It go, it increases in value. So that's why it's not good to put all of your investments in one company. Because if something was to happen with that company and say they went out of business, then you would lose all your investments. But if you have a diversified portfolio in all these different companies, that really is a strong way to build your account over the years. 7. Finding Company's Strengths: All right, so in this lesson, I'm going to show you how to find a company's strengths and the importance of that in selecting your investments, finding a company's strengths, you must ask these two questions. When looking to find strengths. What are they good at, and what do they do? Well, there's a variety of different resources that you can look to to give you more information about what a company does well. And that would be their annual report that they have posted on their website. And you can look into that, see what their culture is like, what they do well. And you can also look at different resources such as the Motley Fool and other investing resources that share with you what companies do? Well, I've researched two companies that I want to give you an example of to show different, how different companies can have different strengths. And the first one is Alphabet company, which is called Google. This is just a great company here. And as somebody who you have heard, Google has one of the most talented workforces in the world because they make it really fun to work there. And so there are people, there are very talented. The ad revenue, 90% of Google's revenue comes from ad sales. And that's other companies pay Google for them to appear in their search engines, Gmail and other platforms that they've created, which leads me to the third strength of Google is Gmail. They do email so well at Google. So those are, those are their strengths. Now waste-management is basically a trash company. And it's going to have different strengths than Google. But if you look at waste management over the recent years, they've increased the automation with their processes, including those arms that go and they pick up the garbage and then they dump it into the truck. And so that is an advantage for waste management. And then also they have very good employee training. And so somebody who's just getting started in the field of waste recycling or things like that can go to waste management. And there'll be like, Hey, if you want to work for us, we'll train you. And their investment and their employees leads to people wanting to stay there, wanting to work there in the long-term. So that is the strengths of these two companies and how to find them. 8. Finding a Company's Weaknesses Final: Let's talk about finding a company's weaknesses. This lesson will teach you how to find the internal weaknesses of a company that you're looking at researching, It's important not to turn a complete blind eye to a different weakness of a company. Because you want to be aware of these kinds of things. Because honestly, just like people, companies each have things that they do well and things that they really could improve that. And so making yourself aware of these things gives you the awareness to make a better buying decision when choosing them for your stock portfolio. So when you're finding a company's weaknesses, you want to ask the question, what do they do not do? Well, you want to ask the question, what are they good at? Fine these things out, research it on the internet and come up with the most important things to you, the biggest weaknesses to you. So here's an example of this. I did this for the same two companies, Google and waste management. So if we look at Google as a company, It's main weakness is actually also its strength that I mentioned at the beginning. But its main weakness is that it has limited income sources because 90 percent of its income comes from ad revenue. And then the other weakness is Google's privacy policy. So what happens is at Google, they're an incredibly innovative company that comes out with new products. They're a visionary company that's in their lifeblood, is they have great vision. But sometimes the way that, that vision plays out affects the legal side of things negatively. So they've been hit sometimes with privacy policy violations. In terms of people just not understanding how deeply their algorithms dig into different things they could at. One of the things they could improve at is being a little bit more honest in their terms of service up front with what their stuff is doing with the different consumers that they have, such as Google Maps, people are like, Oh, I didn't know that Google Maps has been tracking my every move for the past five years. I don't know if I I don't know if I want that for me personally. I don't care. I know that I'm not doing anything worth tracking anyway. So the other disadvantage or weakness of Google is there an online company? But they do not have a presence in the social media atmosphere of online, Google Plus, I don't know if you've ever heard of it, but it was their attempt at social media. And that really didn't take off at all. Facebook has a huge advantage when it comes to social media. So now let's look at waste management from over here. Waste-management is interesting because their main weakness is failure to collaborate. And this plays out pretty interestingly in the company where you'd have to drop off waste at certain places. And it takes a high level of interconnectedness and collaboration to make that work. And there have been times where they fallen short. And the companies that they work with pull away from waste management because they're like, you know, this whole thing spilled over here. Things like that had been left unaddressed. So and then I said another weakness. Something waste management could improve at is working with the little guy. And so there had been other waste companies that have came in and they provide a more effective services to these little niche markets for, for waste. So those are some areas of improvement for waste management. Stay tuned for the next lesson, where I'll be showing you how to find company's greatest opportunities for the future. 9. Defining Opportunities: Alright, now I'm going to show you how to define opportunities for the company that you're looking for. Now when you're looking at opportunities, you're looking at exterior things happening outside of the company that could affect how the company grows in the future. When you're defining opportunities, you want to ask, where is their growth potential, what our future market trends, and what is their plan to meet future perceived needs? I already mentioned before, a company's annual report is a great resource where they completely tell you all of their plans publicly. But the reason that people don't often look at it is because it's a long report. But I would encourage you take the time, look at what they're saying that their plan is for the future. So you want to answer the question, are they going to be able to meet the trends of what consumers are wanting in the future. For example, let's look at Google. Their future opportunities are with their Android cell phone operating system. And so they create Android phones, which is a great operating system. The cell phone industry is growing in general. So that's a great place to be in that industry and a great opportunity for them. Another opportunity is remote work solutions. We live in a time where more people are working from home than ever before, Google really has an opportunity to create software that helps people work from home. And then the other thing is online advertising as a whole is growing. People like you and me can use Google to advertise small products that we even come up with. And so there's a lot of individuals that are beginning to grasp the power of online advertising with Google, pretty great opportunity for them. Waste-management, again, different company, different market, different surface. So Waste Management has an incredible opportunity with new environmental policy. And this is what happens whenever there's a Democratic president in office. There's policies that come out that require companies require cities to take better care of their waste. The other thing that they have the opportunity to jump in on an already have jumped in on is online sales. So they can find business to business customers on the internet. And that's a, that's a really great opportunity to and then developing new technology for the removal and disposal of waste. Definitely a great opportunity because that would make their whole operation more efficient and save them money in the future. There's some great opportunities for every company. And next up, I'm going to show you how to define threats towards a company. 10. Defining Threats: All right, so now let's learn how to define threats for accompany. Now, a threat is something coming from the exterior of the company, threatening to shrink the company itself in the future. It's good to be honest about what the threats are coming towards a company. To give you the right view of what it is. I don't want to just be like all pie in the sky when I'm looking at different companies, but, but see the threats and consider them as I see the threats, I don't want them to scare me from seeing the opportunities. A lot of people, they'll go either one way or the other. They'll, they'll see all opportunities are all threats. Our goal and what I'm looking at for you is to be, to be balanced in seeing both of the things and Wang both of the things. So at the same time, knowing that there's a threat against the company isn't going to prevent me from investing in them. How do I define what a threat towards a company is? It means you have to first see events that could negatively affect the company. Such as if there's a company who manufactures products and they use fossil fuels to manufacture those products. The price of gas going up is a threat to that company. Are there any events that could decrease the company's sales in the future? So let's go back to our example companies here, we have alphabet and waste management. I looked at the different threats to them. And here they are. With Google. The competitors of Google have been growing at a faster rate than Google, such as social media companies, such as Facebook. Their market share in the advertising industry has increased. Well, Google's has decreased about 1%. So it is a small decline, like it's very small, but I think it is significant to say that other online advertising platforms are growing faster than Google. But Google is still the biggest out of all of them. So keep that in mind. The other threat towards Google is tension with China. And they've been, they've been trying to release products and increase their presence in China. But the government has kinda been going back and forth with that. If tensions between China and America increase, there's a possibility that those products won't be able to be released. So that's definitely a threat towards them. Waste-management, totally different company. We got online business, we got the garbage business here. Waste-management is a fairly large company, and so they have a presence in multiple nations. This term here looks complicated, but trust me, it's not that complicated. Multinational exposure just means that they have a presence in multiple nations and that the changing policy in those nations could negatively affect the company in the future, increasing minimum wage. So here in the USA were considering increasing the minimum wage on a national level to 14 to $15 per hour, which would be good for the workers. But for the overall company, it would affect them negatively because now they have to be paying everybody more. And for budgeting purposes, it could affect them negatively. Makes sure to consider threats, but don't let them scare you away from these different companies. 11. The Circles of Influence: Alright, pay attention close in this lesson because I'll be showing you how and why stock prices change in the markets today. If you can identify the reason why a price is changing, it helps you predict better what's going to happen in the future. With that in mind, I want to introduce you to the circles influence. These are the five things that affect the price of your stock. Now this is a key one that I want you to pay attention to. So I'm going to underline that one. Well, global events, national events, industry changes, company perception. Those are all external forces that affects stock price change. However, company performance itself is the strongest indicator over the long run of where a stock price is going to go. As I share these different influences of the stock price, know that it will always be the company performance itself that will affect the price the most. Let's look at global events. Now. How does a global event affect a stock price? Well, it happens all the time, the upcoming Olympics, there are certain, certain brands and certain changes that happen on a global scale during the time of the Olympics. So just, just something to think about. Another great example of a global event would be the coronavirus. You have to be able to distinguish what is changing your stock price. Say a negative global event happens such as a worldwide pandemic and the price of your stock goes down. Some people would look at that and be like, oh what a terrible company. They're a bad company, their prices going down. But in reality, the only reason that the price went down was because of a global event that happened if it didn't have anything to do with the company. So in those situations, my suggestion is stick with it. Stick with the good company. You know, global events come and go. Great companies last and will grow over the long term. So that's an example of a global event. A national event is interesting and it can affect the price of your stock to national events, affect all the stocks within that country. There's an election and Joe Biden gets elected instead of Donald Trump. That is a national event that affects the stocks. A great example of this would be the environmental policy with a waste-management example that I gave earlier in this class. Waste management is actually in a better position because of the national event that happened. Because now there's going to be increased environmental policy and more business for them over, over these next four years where Joe Biden's in office, that would be an example of a national event. Man, this is good. This is so good. Industry changes. Now it's important to ask yourself the question, is this company in an industry that's growing or shrinking? Another company called Humana is actually in the health care industry. There are a large health care provider. They are in an industry that is growing. You want to be aware of what's happening with industry. You know, with, with health care. You have, you have the USA, and even around the world, our population is aging. And so there's a greater demand for health care than ever before. And it's predicted that that greater demand for health care will continue through the next 10 to 15 years. Is it, is the industry that the stock in growing or shrinking and what changes are happening with that. And then company perception affects stock price too. Because remember what I mentioned earlier in the lesson is that the price is determined by the perceived future value of what somebody's willing to pay for a share in that company in the future, if something makes accompany look bad, it will affect the price negatively. If something makes the company look good, it will affect the price positively. A couple examples of this. The company Tesla makes electric cars, and there's, there's positive news articles coming out all the time. Reporting about Tesla, the perception from the outside is, you know, this company has the ability to change the world, which I believe is true. And I've personally decided to invest in testlet 2. But that is one thing. One way that news can affect a positive perception. You know, news can also give a negative perception to accompany. Ask, just ask the company of McDonald's. Years ago, there was a documentary that came out about McDonald's and its negative health benefits and McDonald's stock as a result of that documentary actually decrease. It didn't affect them for too long because they ended up growing and increasing. Lastly, we have company performance. Last but not least, definitely the most important out of all of these. So every three months is what's called a quarter in business. And so every three months, every business has to report its losses are earnings, and they also have to report all of their financial information. So you can know how, how much debt they have, how much assets they have, what their profit has been, if they had a profit or loss. And so all of that is there for us to be able to read and ingest. Say a company reports a loss in profit for one of their quarter's sales just weren't there. They may have spent too much on research and development and they ended up having a loss for that quarter. The stock price of that company would decrease. On the same wavelength. Say a company reports a great prophet during a quarter and a strong one, then the stock price of that company will increase. So as you're looking at stock price changes, ask yourself that question. Is this an exterior influence changing the price? Or is this an interior influence? One of the things that Warren Buffett says, if my boat is sinking, I'd rather switch to another boat rather than try to get all the water out of the boat. That thinking, what he's basically saying is if a company is, is consistently having negative performance, it might be time to sell that stock and find a new company, or in this case, a new vessel. So there's some wisdom for you on that. I hope that was helpful to you. I hope that was helpful to you in being able to determine the influences of the prices of your stocks that you get. Stay tuned for the next three lessons. Where I go over three stocks that have been highlighted to me for this year. 12. Shopify Stock Highlight: All right, Let's talk about Shopify. This is the first company that I'm highlighting for 2021. And it's a really interesting opportunity. So as you can see here, Shopify, stock price has increased dramatically over the past five years. And as we can see, you know, at the beginning of this past year, they were selling at 986 and now they're selling at 1458, which is a 38% increase in one year. This is worth noting. Why is the growth happening for this company? Well, the first thing that we're going to look at is what they do, what their product is. Shopify Incorporated is basically an e-commerce platform that provides services for small to medium-sized businesses. And these services, they take care of everything that you need in order to sell an item online. On top of that, they offer a service that will allow a small online retailer to sell their products in multiple feeds. They can put a product on their Shopify website, but then they can also feed that to Facebook. They can also feed that to eBay. They can feed it through all these different platforms in social media and online retail such as Google to, and it's really helping these smaller retail, online retail business compete with the bigger guys headquartered in Ottawa, Ontario. So shout out to Canada, founded back in 2004 and has 7 thousand employees. Now, here's what I want to draw your attention to. Like I mentioned before, the 52 week low as $839. 52-week high is $1500. Here is the price right now it's very close to the 52-week high. But in my opinion, Shopify has a lot of room to grow. In my opinion, they're just getting started with the trend that's happening in online retail. It's especially exciting because they're helping the small guys be able to win. And the way that I look at financials for stocks is I'll actually go to Yahoo Finance and click this financials button here. Want to look at their revenue and see, see what's happened in the past with their revenue over the past, over the past few years. And you can see right off the bat, well last year their revenue was 1.5 trillion. This year it was 2.9 trillion. That is a sizable increase in revenue for one year. And then the revenue to the month is 3.4 million, which is incredible too. So over here on the right-hand corner we can see the annual earnings and how they compare with revenue. And you can see that in 2020, it was their first year that they marked a profit over the past four years. So they lost money over the past four years, but they finally gained money in 2020. 2020, they gain money, to me is a good sign because companies go through cycles of investment and development and profit. And so during these years, they were really building things in their company. But now in 2020. And from here on out, they're going to operate. Profit is just the way that I see things happening. You know? And the other thing that's nice to look at right here is I can click on this balance sheet button and look at how much, how much assets and liabilities accompany has this little note right here. It says all numbers are in thousands. So with each of these numbers here, we add three zeros. Wow, that's a lot of money. Even though this says 7 million. It's actually 7 billion in total assets. Even though this says 1.3 million, it's actually 1.3 billion in liabilities. This isn't interesting ratio because it's fairly favorable. For every $7 of assets. They roughly have $1.3 in liabilities, which is a good ratio. And you can see the gross total equity. So this would mean if they stopped as accompany and they sold everything and shut down, the company would be worth $6.4 billion. That is a great sign that the company is secure and their position for growth. So Shopify is definitely just because of the products that they provide, the industry that they're in, and the financial health of the company. It's definitely a stock to watch and consider going with at this in 2021. I just want to remind you that I'm not a person who gives license investing advice. I'm just somebody who's managed their own investments for about seven years. I want to give you the right principles for you to make your decisions, that you want to make yourself. So that is Shopify. And next up we have bp. 13. BP Stock Highlight: Next company, British Petroleum. Now there's a couple of exciting things that I want to show you about this company. So here we are in Robinhood. And this is what the price of the company has done over the past year. As we can see, in August, there was a decrease in the stock price. But in November 2020, there was a turn around. And ever since then, it's been rebounding and heading upwards to today, which is now $26.92 cents per share. So that's what it's done in the past year. But what I think is really interesting is looking at what the price is done in the past five years. Because before COVID, the price of a stock, of a share was around $40. And that was, that was a consistent price for the share. British Petroleum, just like all gas companies or heavily influenced by the coronavirus, and they still haven't fully recovered. But what they're doing is they're on the recovery path back to their old share price. Now, if we look at BP, we can see it's a gas company. You've probably gotten gas from there. The thing that I like about this company too, is that it's headquartered in London. And I always like to look at different companies around the world and have diversity of companies from different countries. So that's really cool that they have 63000 employees there from London. And then just drawing your attention to the 52 week low, $14.74. 52-week high is 2849. And right now it's at 26. So saying that the price will go even higher. Now the most interesting thing that I find about BP is their company strategy. Now right here I've just gone onto their website and clicked investor information. And they have this tab over here. It says their strategy and they, they spell it out for you right here, which is really cool. They use this wording. We're setting out a new strategy that will see us pivot from being an international oil company focused on production, producing resources, to an integrated energy company focused on delivering solutions for company customers. So what they're going after is sustainability. They're going after convenience and they're going after the resiliency of alternative energy sources. What they're going to do is they're going to add alternative energy to their focus and they're going to start purchasing solar. You can see this picture of the solar panels right here. They're going to purchase solar panels. They're also going to be building new wind farms and looking at investing in a sustainability timeframe, which is unique for an oil company because oil companies and alternative energy companies generally butt heads, you know, but they're actually embracing the new thing that's happening with alternative energy and providing solutions for our customers. The other thing that they're going to do in the coming years is they're going to increase the convenience and mobility for electric cars, which you don't see very often. You don't see that very often happen in a gas station where you see an electric car charging port and a gas charging port. And there they will be offering that in the future. In the long run, as electric cars, alternative energy gets more popular. Bp is going to grow with that trend and leave other gasoline companies kind of in the dust. I'm really excited for where they're going. If you look at their sales numbers, I just want you to look at the right side over here. So annual sales numbers, they were profitable in 2017, 18, and 19. In 2020, they had a 20 $0.3 billion loss. They weren't profitable. You might say what, like, what do you think it? Why are you recommending this? Because for the past two quarters, they've had 1.36 billion in earnings and in the last quarter they had 4.6 billion in earnings. So if you look at it by quarter, they're back on track for earnings. They were greatly influenced by what happened in the coronavirus and quarter two of 2020. But I expect the earnings increases to keep going. And as they proved that they can make great earnings, people are going to notice that. And people are going to be like, oh, what's going on with this company? I'm seeing this as an opportunity to get in on a company that's on discount and it's definitely worth checking into British Petroleum. 14. Humana Stock Highlight: All right, let's look at Humana and what this company is like and where I see them going in the future. So this is definitely a highlighted stock in 2021 in the future. Note that this is in the health insurance industry. So if we look at the stock price for this past year, they started out the year at 396 and now they're at 451. So they've seen a 14 point to 2% growth so far this year. You know, it's always helpful to look at the five-year graph of what things are doing. So you can see in March 2020, the coronavirus didn't hardly have an effect on the stock price. They recovered very nicely because they're in the industry that increase in demand as a result of the coronavirus. Humana engages in health insurance services and they have an incredible reputation in the industry, especially in the United States. Here's a couple of numbers that I want you to look at is they have a dividend yield, so they give you a small dividend. There are 52 week low is 370, 52-week high is 475. And then their price to earnings ratio, it's basically a measurement of the cost of their earnings is at 16.07, which is very good in my book, what I want to show you too is the products that they have. So here we are at the Humana Medicare plans website. They have three different products that they present to you right away. And one of them is a Medicare supplement insurance plan. You might be thinking, well, why would I invest in he mad, You know, there's, there's talk of the health care system, obamacare, all of that coming back. Now with Biden in office. This is the reason why I would continue to invest in it, is because this is a product that is a supplement to government created Medicare. And what they do is they provide top quality dental, vision and hearing care for people with their insurance. And that's something a lot of people will want. And so I'm looking at this product. I'm just thinking, man, this could be a big success in the future. So let's look at their fundamentals, their earnings per share. They've done very well in earnings this past year. And basically what this earnings per share means is for every share of stock that they've issued, they've achieved $28 of earnings, which is definitely a good sign. I'm going to click on financials over here. Let's look at revenue in the right-hand corner. Very consistent, very, very consistent. You can see a jump in revenue growth in 2020, which is great with corresponding jump in earnings. They've never gotten below their target earnings. That's really great. And their estimate for the next quarter is also going to be a profit. So they're a very stable company. They have very stable earnings. If we want to look at the quarter, they had a tough quarter in the fourth quarter of 2020, but then quickly rebounded with 828 million in earnings in in quarter two of 2021. Let's look at the balance sheet. This is interesting. This is nice to just check on 34 billion in assets, 21 billion in liabilities. So their assets are greater than their liabilities. That's always a good thing to know. Just something to spotlight, something to look at. Possibly a great stock to have with the health care industry growing in the future. 15. Next Steps: So here's what I want you to do with what you've just learned in this class. I've created a class project for you. And what I'll have you do is select three companies and do what's called a swat analysis. I did this earlier in the lesson where I went over strengths, weaknesses, opportunities, and threats for a company. Download the page below and complete that assignment, and then make sure to post that within this class resources area so that people can see what you came up with in your research. I love seeing what you guys come up with and interacting as a community for rolling in investing. Now the other thing that I would like you to do is take a second and leave a review on this class. Tell me what you liked about it. And maybe even if there is something that could be improved, leaving a review for the class helps other students be able to see what gets taught in the class and how it affected you. I would very much appreciate that. And then the last thing I highly recommend taking my other class, buying and selling for beginners. Now, this class goes over the different terminology of how to buy a stock, how to sell it. When you're actually within your investing platform, you'll learn how to set an automatic setting so that when a stock hits a certain price, you'll buy it at that price, which is really kind of useful. Thank you so much for taking this class. I'm so excited to see where this takes you in your journey of investing. I'll see you in the next class.