Ndubuisi 'Andy' Egwim addresses an audience of doctors and healthcare professionals about stock market investing. Responding to a question from a participant (Dr. A), he explains differences between fundamental analysis (evaluating company profitability, competitors, P/E, EPS) and technical analysis (chart-based), notes the time and attention required for single-stock investing, and recommends passive investing via index funds as the better approach for most doctors. He references Benjamin Graham's The Intelligent Investor and points viewers to moneywisedoctor.com for more resources.
Chapters
Right. So as a doctor, healthcare professional, you probably think a lot about investing your extra money. You have realized by now that saving money will probably not get you there, despite the fact that doctors and healthcare professional probably don't get the highest salary or the highest pay in the system. But we also don't get the lowest pay in the system. And if you think about it, most times you'll be able to save and be able to invest. There's always a way around it. Now the next question, which is sent by Dr. A, who is a JP and attending our event on Saturday. So send the question ahead of the ask me anything, which is for financial intelligence for doctors. The event was meant for 50 people, but it's already over subscribed. We've got 50 people already subscribed and about 200 people on the waiting list, doctors and healthcare professionals. But let's jump right into the question. The question is about investing. His previous question was about real estate investing, but this one is about stock market investing. What are some tricks or tips to know a company that would do well when considering investing in the stock market? Now, if I had a penny for every time I've been asked this question over the last 15 to 20 years, I'll probably be a multi millionaire, not a single digit millionaire. Probably be a multi millionaire because people want to know how do I know what to invest in the stock market? How do I know which one to buy? How do I know which one is going to go down? By the way, some people make money when stocks go down if they are shorting it and some people make money when it goes up. Most of the population. Now, despite the fact I've been investing in the stock market since I was a teenager and it's really helped me to get to where I am financially. It gotten me to the point where I had that financial flexibility to choose what I want to do. And it's really quite helpful. But I'm going to say this. I don't think that investing in single common stocks is for every doctor. I don't think it's for everyone. And I will explain why. I'm not saying you're not bright. Of course doctors are very bright and you are very intelligent. You're hard working. But from this question, what I Understand is that Dr. A, Dr. A is prominent again, I don't want to say his name because everybody's going to know who I'm talking about when we talk about investment investing in the stock market, think of it like you're buying companies, you're Buying a business, you're investing in their business. Shareholder. So you want to know about the business. This is my school of thought, fundamental investing. You want to know about the business. Are they a profitable company? Are they losing money? Who are their competitors? What is their PE ratio? So that's price to earning ratio. So it's selling at this price. Are they earning enough money? If I were to not be able to sell this stock and I just got dividends from them, will I be happy with it? You want to note in like earning per share, so eps, how much is each share able to pay me as a dividend? You want to look at so many other things. That's why a lot of people who invest in the stock market do what we call fundamental analysis. Now, as a young teenager, that was the first time I read a copy of this book, the Intelligent Investor. I'll bring you closer to the camera. Intelligent Investor by Benjamin Graham, which was like the bible for fundamental investing. And Benjamin Graham was Warren Buffett's mentor. Right. So you want to analyze the stuff from this point. Some people read company reports. I've got friends, I think some of them are here who for many years we read company reports together. Now we analyze companies. We attend investors call, we attend shareholders meeting. I'll be in Omaha in Nebraska later this year for Warren Buffett, his company, Berkshire Hathaway. I'll be there for shareholders meeting. But basically, when you're investing in a company, you need to know about the company. You need to do some work. And a lot of doctors and healthcare professionals don't have the time or the training to do this. A lot of times I've been investing for so many years now, and I did the fundamental thing. There's another group of people who do technical analysis. They don't care about the company. They're just looking at charts, they're looking at how the company is moving. They are doing mathematical equations and all that. That is fine. But a lot of doctors also don't have the time to sit around and be watching charts or getting, you know, your mood is going up and you're anxious all the time. You're wondering what's happening in the stock market. You're not able to concentrate. You're wondering if you're going to lose your retirement investing or maybe end up losing so much money. So what I recommend, which I think is better for most doctors and healthcare professionals and surprisingly is also a way to do much better than 99% of professional money managers, I recommend passive investment with an index fund. If you head over to moneywisedoctor.com you will see under here.
