Andy Egwim avoids Tesla and NVIDIA because he thinks they're overvalued and driven by hype rather than fundamentals. He buys stocks with a margin of safety, like picking one worth $50 at $20. Most people should just stick with index funds unless they're willing to learn stock picking.
That's why we also introduce what we call margin of safety. So if you think this stock is worth like $50, you want to be buying it at $20. And if you can't get that $20, you're not interested, you move on, you look at something else. That's why I don't own Nvidia. I don't own Tesla because I think they are overvalued. Because if more people want to buy it, what happens? The price goes up. If more people want to sell it, the price comes down. It doesn't matter if it's a good investment. Most people don't care about whether it's a good investment. They are not like you. They are not interested. They just want to know, is it popular? One sign that a stock is not may not be a good investment for me is if it's popular, if everybody knows about it. So a lot goes into individual stock picking. That's why we often say, look, if you want to. If you're really, really keen on doing individual stock picking, take out some time and learn it. It's an investment in your life. For someone like me, my knowledge of investing I've had and I keep learning is one of the best investments I have made in my life. Learning how to do it. It's not a skill that just disappears. Just like you becoming a doctor, you went to med school many years ago. You're using it to move to different countries, you're working. But if you want to keep things simple, index funds is the way to go, I would say, because then you can buy. Rather than trying to find the needle in the haystack, you can just buy the whole haystack.
