What All Investors Need to be Considering (w/@MinorityMindset)

Hey guys, and welcome back to the channel! So, just the other day, I had the privilege of sitting down with Jaspreet Singh from the Minority Mindset for about 40 minutes, which was really, really cool. If you don't know Jaspreet, he has over a million subscribers on YouTube, but is also an experienced stock market and particularly real estate investor.

So, we spoke a lot about that, um, and also entrepreneurship and scaling your own business. This video is quite simply my chat with Jaspreet, so without further ado, I hope you guys enjoyed the discussion, and let's roll the tape.

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Well, Jaspreet, thanks for coming back on the channel. Um, I was looking actually just before; it was two and a half years ago since you've come on the channel, and actually back then it was on the Young Investors Podcast of all things! So, it's been a very, very long time. So, how have you been, man? What's been going on?

Well, congratulations on your success first off, and man, things have been good, staying busy.

Tell me about it. The Minority Mindset has just gone leaps and bounds! We were talking just a little bit before, but um, for both of us, it's just remarkable how the YouTube space has grown over the last little while, particularly. Minority Mindset now has over a million subscribers, which just absolutely blows my mind! That is definitely YouTuber goals.

Um, like what do you put it down to? If you had to say your key a couple of key pillars of how you've built that community and the success that you've had on YouTube, what would you kind of put it down to?

Well, I think it just kind of goes back to our purpose and mission. I never started Minority Mindset with the purpose or goal of making money. And yeah, for me, it started off as a hobby! I think we talked about this before. I started because it was like I got screwed over in a business that I was working on. So, I started Minority Mindset as a way to help people learn the things that I wish I knew when I was getting started.

For me, it was just kind of something I did on the side because I was doing a different business. I was doing a bunch of real estate stuff, so I was busy, and I was also going to law school. So, for me, it wasn't really like, "Oh, I'm going to get rich doing YouTube." I never thought that!

Uh, but then YouTube started to grow, and now all of a sudden I'm like, "Oh my god, I gotta make a decision! Our YouTube channel is growing and there's real opportunity here. Do I go all in on this or do something else?"

And for me, you know, I love talking about financial education, man. I mean, this is something I'm so passionate about because I never grew up learning about money. I never grew up learning about financial education. I never grew up learning about entrepreneurship or being told that it's okay to try something different.

I was actively discouraged from all of these things, and I was so angry when I started learning about how much money I spent in college and all this time that I spent in college, but I never learned for a second about what it takes to build wealth or invest your money or really have the sort of financial freedom.

So that anger, you know, always kind of resonated with me, and then Minority Mindset is really just a platform for me to express the things that I wish I knew when I was getting started. And you know, it started off with social media and YouTube, and then it really grew into a full financial education and media company.

I mean, now we're one of the fastest growing financial education and media companies out there. We have our main Minority Mindset YouTube channel, we have the Minority Mindset News channel we just launched, we're publishing daily updates on the top finance and business news.

We have a Spanish channel, Minority Mindset en Español, where you can watch content in Spanish for the Latin speaking countries. We have our website, theminoritymindset.com, where we publish articles every single day. We have our daily newsletters which break down the top finance and business news.

So we've really grown! And you know, we have resources like our academy which we just launched, which is a way for people to learn how to invest their money in the stock market with a coach. You get weekly coaching sessions, and we keep it super affordable.

I mean, less than the cost of dinner for two, and you get weekly sessions. And on top of that, you can even try it for free with a 10-day trial to see if it works. I mean, it is really just kind of changing the way things work because it's not like, "Oh, you got to spend a thousand dollars and then see if it works." You know, no, we don't want that. Try it out!

You know, if you don't love it, then don't pay! You know, it's one of those things where we're just changing the way things are done— the whole idea of thinking differently than the majority of people.

And so all of this, you know, you can find everything on our website, theminoritymindset.com.

What we do, that's something that I remember taking out of the first conversation we had all those years ago is that you're actually someone that's very entrepreneurial. Like, it's the core of kind of who you are!

I think you were saying at the time... How do you, and obviously the Minority Mindset, sure, it's a big YouTube channel, and you've grown it now to something which is even more than a YouTube channel. What would be, for people that, like a lot of people watching this are very entrepreneurial, what would be your kind of practical steps to kind of take those leaps to grow a business, um, to expand and pull off those kind of business goals that you've been able to achieve?

I mean, on a practical kind of nitty-gritty level, it's being able to hire people to do things that way you have more time thinking. You can't do everything yourself; it's impossible.

And that's one of the hardest things, especially for smaller entrepreneurs, where how do you now start delegating tasks? Because you feel like nobody can do as good of a job as you, nobody can work as hard as you, nobody's going to be willing to put in the same effort as you.

But you have to be willing to train people because if you're taking on all the work yourself, you'll never be able to scale, you'll never be able to expand.

And it's super easy now! I mean, you can start with freelancers from Upwork and Fiverr; that way you can start getting people, whether it's to assist with your emails or editing work or writing content or whatever it is, you have to start expanding outside of you.

The only reason that we've been able to grow at the scale that we have is because we have an amazing team. Uh, you know, we have people who are way smarter than I am that are, uh, you know, running our newsletter.

I'm not a great writer. We have people that are amazing writers that are covering the top finance and business news. We have amazing writers covering our blog. You know, it’s you have to be able to find people who are smarter than you, who are doing things differently than you.

Like, I’m the creative, the doer, the kind of just that type of person. I have people who are now the more analytical, let’s think about it, let’s really just slow things down, working with me.

And sometimes, you know, we're like butting heads like, "No, we gotta... we gotta just be crazy and do it!" But you know, you have to be able to have these contrasting viewpoints and contrasting thought processes and bring people together.

That way, you really have a team that's working together. It has to be a team; you cannot do it all yourself.

And you're saying that you're very much the... you know, the creative force behind that, and that's actually why I really like your videos. Obviously, you're super knowledgeable about pretty much every single kind of financial topic, but I also find with your videos, I really enjoy them because you're just a very good educator; you can explain things very simply.

So, one thing that I was actually looking at the other day, and one thing we were just talking about before, is that there have been so many people in the last couple of years that have become kind of... they're new to investing, and they're getting into the markets and whatnot.

In fact, I had a stat here that I saw the other day which you might find interesting. In Robinhood's latest quarterly filing, they've added 12.7 million users in the past 12 months, and they only have 22.5 million users total, which is pretty insane.

So, I'm sure you get this all the time; friends come up to you, subscribers even come up to you and say, "You know, Jaspreet, look, I want to get into investing, but I've never done it before."

What's your kind of... how do you explain to them how to get going? What's your tips, your pointers, your advice that you normally give to those people?

The worst question that you can ask is, "What stock should I buy?" Because you're ignoring everything else around it. What's a good stock for you might not be a good stock for me, and what's a good stock for me might not be a good stock for you.

So, a stock can be good or bad just depending on what your strategy is, and that's where you need to start. You need to understand what your goal is, and based off of your goal, you can come up with a strategy.

So, what does that mean? Because everyone assumes that... what are you talking about, man? My goal is I just want to make some money! Okay, well, let's break that down. Do you want to make money in the next three to six months, or do you want to make money over the next three to six years or 30 years?

And you know, especially if you're younger, you might assume that the sooner, the better. What you're talking about? Well, fine, but that comes with added risk! You know, traders take on the most risks. Somewhere between 80 to 90 percent of traders will lose money in the next 12 months. Overall, you're going to be at a loss—it's just... these are stats.

I'm not a trader; I like investing my money. Investing my money means I put my money into an ETF or stock, and I hold on to it for a long time because I want to invest in something that I believe in, that I believe is undervalued, and I want it to grow.

And in order for it to grow, I need to give it time, and you're going to see wild fluctuations. You might see it go up and down; you know, traders move the market in the short term, but over the long term, it's all about the real fundamental values of the company.

So that's the person you've got to understand: where on the spectrum do you want to be? And then you got to ask yourself really, like, how risk tolerant are you? Because if you're 22-25 years old, and you know, you don't got that many financial responsibilities, you might say, "Hey, I'm okay taking more risks."

So, you might be looking at growth companies and more startup-type companies which don't have any profits, which have the opportunity to grow a whole lot faster because they're investing every single dollar that they earned back into the company, and maybe more. They're taking on debt; they're taking on more investments. That way, they can grow in market share as fast as possible!

So you have the opportunity to see a lot of growth in the stock price in the next three to five years, but on the downside, there's also a chance they'll fail. So, you know, if you're okay with that risk, then that's something that you can do.

Versus, you know, let's say you're not okay taking that much risk, then you might be looking at blue-chip stocks or ETFs or something else that's a little bit more stable because now you don't necessarily need all that potential upside; you just want something where your money's safe, and you get decent returns every single year.

Or maybe you're that person that says, "I just want to invest my money in the market, but I don't want to do any of the work." That's fine; you just have to be honest with yourself about that.

Then you can look at ETFs. An ETF is an exchange-traded fund, which gives you exposure to a group of stocks. Now you can just invest in the ETF that gives you exposure to the biggest 500 companies in the stock market.

So, you know, you have ETFs out there that give you exposure to the S&P 500. Now all you got to do is put your money into that. You can do it every week, every month. There are apps that let you do this free automatically and passively.

You just put a little bit of money every single, whatever you want— week, every two weeks, every month— and now you're just putting your money in the market and you're letting the markets do its thing, and you're gonna do this whether the market goes up or goes down.

So it starts with the education, and this is one of the things that, you know, I'm always talking about. We don't do stock picks on our channel because it doesn't do anything. I mean, it doesn't help; it doesn't help!

Yeah, maybe it'll do well in two weeks, maybe you'll do horrible in two weeks, but I'm looking at things for, you know, a certain time frame, for a certain horizon, but you might not have that goal, and I do not want to lead people into buy this, buy that for the hype.

I want to give you the tools, the education that you need, that way you can go and make the right decision for yourself. And this, you know, I was talking about the academy, right? We call it the Stock Market Insiders; that's exactly what we do. We teach the fundamental analysis every week where you might learn how to read a cash flow statement or how to read an earnings call.

And because these are live sessions, you're going to learn, okay, maybe this week is how to read a cash flow statement, and then you might go over Tesla’s earning statement if that came out this week.

So you'll go over how to read a cash flow statement, then you'll read Tesla's cash flow statement and understand how to apply it. This is what, you know, I'm trying to help educate. It's that education on how to make the smart decisions; that way, you can make the smart decisions for yourself—or at least more educated decisions.

I'm interested to hear your perspective for, like, for new investors. Do you tend to side... maybe you should start out just in ETFs and index funds, or do you tend to err on the side of maybe more Warren Buffett-style investing where it is like, "Yeah, take the time to understand the company, then if you feel like that's within your circle of confidence, go for it."

Because I found that different people have different answers to this. There's a lot of people that are like, "Look, you're just starting, start with an index fund." There are other people which are like, "Look, just take the time to understand the business really in depth."

The most important thing is, it is that you get started; it's not mutually exclusive. I'll tell you how I invest: when we talk about stocks, I have two different strategies. Every single week, I have money withdrawn from my account that goes into a few different ETFs. It's completely passive, and this is because I believe in the American economy.

So, whether the stock goes... the stock market goes up or it goes down, my money is going into these ETFs; it doesn't change. I also have money that I'm using to invest in individual companies because I like that research; I like studying companies. I enjoy doing that.

And so, you know, I do both of these things, and this is where you got to be honest with yourself. It doesn't matter; it's just what are you going to do to get started? You know, you have the same argument between is it stocks, is it real estate? Some people are going to say it has to be stocks; some people are going to say it has to be real estate.

Look, I own both! You know, I have a ton of... I love investing in real estate. There's no one size fits. And that's one of the things that, you know, people always preach that you have to follow this route.

No! There's seven billion people on this earth, maybe even close to eight now; everyone's different! You have different goals, different experiences, different wants, and based off of that, you got to pick the strategy that's right for you.

And you're not going to know unless you try! And that's where you just have to try it and see what you like. You know, if you feel like you're going to like investing in companies, then go put some money in a company and go research it.

And maybe you’re gonna realize three months later, "Oh my god, I hate this! Uh, it's too much for me." And then you put your money in ETFs. Likewise, you put your money in ETFs, and maybe you're that person that you're gonna say, "Oh my god, why is my ETF so heavily weighted in Amazon? I don't like that! Why are we so heavily weighted in Tesla? I do—word, I don't like that!"

And then you're going to say, "You know what, let me go..." And just if you start asking these questions, then you're already... you're already making that decision—you're saying, "I want to be more involved."

So then you go start investing in companies yourself. And I think it’s important to realize as well that when you start, chances are you probably lose some money along the way, so start small and just get a feel for it.

And then, yes, you'll soon figure out whether you are a passive investor or an active investor. So, I agree with you there.

You did touch on as well, uh, just their real estate investing, and I know from our last conversation all those years ago that you're actually quite an experienced real estate investor. Some people might not know that about you.

This is something that I don't really know too much about. I'm not a property investor; I just don't have the experience yet. I'm interested to hear your kind of thoughts—how's the American property market looking at the moment, especially with low rates?

I mean, here in Australia, we're certainly seeing kind of all-time highs. Low rates— is it much the same in America?

It's the exact same! We have, right, the perfect storm in the housing market where housing prices have hit record highs; they're growing at record rates. You have massive demand of people wanting to buy homes and not that much supply.

Now it's starting to slow down; it’s definitely slowing down where you have, uh, kind of things cooling off, but home prices are still growing very fast! Now does that mean that you should just completely avoid it as an investor? No! It means you got to understand what's going on.

Uh, you know, I took a break from real estate when the 2020 pandemic happened because there was just so much uncertainty; I had no idea what the heck was going on. So I gave it, you know, a decent amount of time into 2021, I think, where I just stopped and I was like, "Let's see what happens."

Because we had new regulations coming out in America on evictions and foreclosures, and then mortgages, there was just so much going on! So that's where I put things on hold to kind of see what was going on.

Then in 2021, we saw, you know, soaring real estate prices, but I also got back into buying real estate. The difference now is I am being way pickier now than before, right? Where, you know, I understand that, hey, real estate prices could come down, and if that's the case, I want to make sure that my property is well-suited where, let’s just say, the whole economy slows down.

If I have to lower my rents, then I’m going to be okay. So I'm trying to factor that in because there are properties out there, especially your commercial multi-family apartment complexes, that are being sold evaluations that make no sense.

They're selling properties not based off of how much profit they're making today, but based off of how much profit they think they'll make in two or three years, based off of five to ten percent growth.

So what they're saying is we're making a little bit of profit this year, but we think that rents are going to grow by five percent next year and then another five to ten percent the year after that and then another five to ten percent a year after that.

And based off of how much profit you're going to make in three years from now, we're going to sell this property today. I'm not doing that, right? I'm not getting emotional; I'm not trying to chase these properties. It's harder because now I gotta sift through a lot of deals.

I gotta spend more time finding the right deal, but I'm not going to chase these properties. But I'm still going to buy because if, let's just say, there is going to be... I mean, we know there's going to be a correction; every asset class—stocks, real estate, cryptocurrency—goes up and down, right? It's the fact; it’s happened for centuries now.

The question is when? I don't know if it's going to happen next year or in 10 years. I mean, I obviously have my own guesses, but I have no idea. And so I'm not going to sit here and just wait. I'm going to buy, be smart when I buy, and then if and when things go down, I will buy more aggressively.

And a lot of people, I guess myself included, are looking at getting into property over the next little while, and I think you bring up obviously a very good tip: be picky and don’t... you know, obviously no one's forcing your hand into a deal, so don’t go into a deal if it's not going to be something that's really good.

And I think we're seeing kind of that same situation in the stock market as well—it's hard to find great opportunities at the moment. Are there any other tips or maybe do’s and don’ts of property that maybe you have learned over the years for people that might be interested in getting into it?

I mean, there's so much! I mean, it's talking about years of experience and mistakes. Are there any that stand out? The first thing is you got to decide what business do you want to be in? Do you want to be in the real estate investment business or the management business?

And this is something that a lot of newer real estate investors have a hard time getting their head around because let’s just say you buy a property— we'll talk about a single-family home—and you rent it out for $1500 a month.

Well, now you have a question to ask: Do you want to manage the property yourself, or do you want to hire a property management company who is going to take somewhere between 6 to 10 percent of your gross rental income? So up to $150 a month to now manage the property?

And you might say, "Oh, it’s just one property; it's not that much work. Uh, you know, the tenants gonna pay rent, I just got to pay the taxes and the bills; it's not a big deal."

Well, for me, I don't want to be in the management business. I want to be in the ownership and the investment business so I have my time so I can find more investment properties.

So, uh, you know, that's where you got to decide: What side of the business do you want to be on? I don't want to be getting calls from my tenants saying, "Oh, my toilet's broken!" or "Oh, the furnace isn't working!"

I want them to call my property management company, who is then going to find the contractor and do that. I want to just review it and manage it to make sure that, you know, everything is running efficiently and make sure my management company is doing a good job and making sure the tenants are taken care of.

But I don't want to be the person that's paying the bills; I don't want to do that day-to-day stuff.

And I guess the last thing I wanted to touch on—so we've spoken about property a fair bit. The last thing I wanted to touch on as well—and this is something that is related to property—is inflation.

Because I'm very much an outsider looking in because obviously I live in Australia, but I've been following what's been going on with inflation over in the states, and this is leading to, you know, asset prices going through the roof—obviously stocks, real estate, record low interest rates.

How are you kind of seeing inflation at the moment? I see that you've made a fair few videos on the topic of inflation and whether it's kind of transitory or whether it's kind of here to stay. How does inflation factor into what the investor should be thinking about, whether it's the stock market, whether it's real estate? Are there any things that you're thinking about in that area?

So, inflation is when the value of our dollar goes down, which causes the price of things to go up. The easiest way to understand this is, you go back to our grandparents' generation. A can of Coke today costs maybe 20 times more than what a can of Coke costed a few decades ago.

And are you getting 20 times more value for your can of Coke today than 20 years ago? No! The reason why that Coke is costing more money is because the value of a dollar has gone down.

So inflation is caused through the dilution of the value of a dollar—which means that when the Federal Reserve Bank prints more money, more dollars are in economic circulation, which means each dollar is now ultimately worth a little bit less.

Between 1913 and 2021, the United States dollar has lost about 96% of its buying power! Wow. Which direction is this going? It's going to continue going in that direction because we keep printing more money.

We saw, you know, a historic record amount of money printing in 2020 and 2021. Between 2020 and 2021, we printed pretty much right around 40% of all dollars out there in just 18 months! Sign!

So, you know, inflation is not going to go away, and we haven't really seen the full effects of inflation. But then, on the flip side, you also have the supply chain issues because if you look around the world, it is very difficult to produce goods.

It's very hard to produce products. Manufacturing plants are still not running at full capacity. Companies, at least in the United States, are having a tough time finding labor. You have cargo ship backups around the world, and that's why we just recently in the United States announced that we're going to open up ports 24 hours a day to allow for more ports to come in.

I mean, if you go to different stores around the country, the shelves are empty! I mean, it's so hard to buy a car right now; it's so hard to build a home right now! It is so hard to really do a lot of things because part of supply chain is a part of inflation.

Now, how much of it? It's impossible to say which one is the real cause of it. The Federal Reserve Bank and the government are going to continue saying that the money printing is not that bad; it's just transitory.

But the facts are, I mean, that's not true; they're lying to you when they say that! Anytime you print money, especially that much money, you're going to feel the effects of it. Now, obviously, we do have real supply chain issues, and I do think that as the supply chain gets figured out, what we'll probably see is we're going to have an excess surplus of goods.

Right? When you have an excess surplus of goods, that can completely shift the market and kind of push the prices of things down. But you know, it's just kind of like... it's like any asset class. A market goes up, it gets overheated, it sells, people panic, it sells, and then it gets oversold, and then it kind of stabilizes, right?

So, there’s a good chance that we could see something like that, and then we're going to see the real effects of inflation because then all these new dollars that were printed in 2020 and 2021 will finally start to be really absorbed in the economic system, and then people will start to see what the real value of the dollars are.

So, you know, inflation is a real thing; it is a real concern, and we will really start to see the effects of this over the next couple of years. Everything that we're seeing right now with the growing prices is not just inflation—it’s supply chain issues as well.

But inflation is a real concern, and we have to really start thinking about that. Is it something from an investing standpoint that you worry about?

I mean, personally, from my perspective, I have a little bit passive investing ETF style and then most of my investing is kind of active investing, individual stock selection. But to me, like, I feel it's good to know what's happening with inflation, but it actually doesn't tend to get in the way of my decision-making at all when it comes to investments.

Do you think that it's something that we should factor in? Or should it affect our investing, or should you try and not let it affect your investing?

It's the reason why you need to invest! You know, we talk about going to work to earn money, right? That's what everybody says. I go to work to earn money. What is the money? Money is supposed to be a representation of value—a store of value.

So now when somebody goes to work and they get a paycheck, they get a paycheck worth dollars—fine! But what happens to those dollars? Those dollars are being diluted every single day because of inflation.

So what you need to do is you need to convert your dollars into something that's real money or convert it into an asset, which is going to be producing you more money. An asset is something that you're buying for the purpose of producing more value.

Right? If I go and invest in a company, I'm giving this company my capital, my value, right? My money; that way they now can use this cash to hire more people, to invest in a new store, to invest in new operations, to grow their company.

So, that's where you have to decide what you want to do. You can convert it to real money, which that’s why you've seen a lot of people start to go towards cryptocurrency. You've seen the growth of people investing in metals like gold and silver.

I mean, these are real money and you can buy these things as a way to store your value, or you can invest it into assets—stocks, real estate—and then you can use your money to now earn more money.

Now, the advantage or disadvantage of stocks and real estate is you can earn more money because now you're producing more value. But the risk is you can also lose money.

So, that's where inflation plays a part is you have to understand that, you know, yeah, savings have their place; you want to have some cash so if an emergency happens, you have money to fall back on. But inflation is the reason why you need to take your excess dollars and move them away from dollars and move them into an asset.

I feel like inflation is one of those things where most people just don't really think about it, but it's... I guess that's why it's called the silent killer of wealth is that over time, it will definitely just slowly but surely eat away your savings. So I definitely agree with you.

Tax! Yeah, the hidden tax that no one really thinks about but is definitely one of the most real things ever! And it's how... yeah, it's about how do you get around that?

And I think you're right; the most important thing is even if you're a passive investor or an active investor, the main thing is that you are investing.

So I think I think that's probably a pretty good place to kind of wrap things up, Jaspreet. Thanks very much for your time! I know that it's pretty late where you are at the moment; we've got a pretty terrible time difference, if I'm being honest!

It's not... it's not the best time difference; it's really late for you, and then it's really early for me. But, uh, I certainly appreciate you coming onto the channel. Where can people find you? Obviously, the Minority Mindset, but you're talking a lot about theminoritymindset.com. Tell us what have you got going on at the moment?

Well, first off, thank you for having me, man. This was a lot of fun! I always appreciate our talk, so I appreciate you taking the time to do this.

Um, but yeah, you can check us out on YouTube, Minority Mindset. You can check out our news channel, Minority Mindset News, on YouTube. You can go to our website, theminoritymindset.com, across all socials at Minority Mindset, so you know we're everywhere at Minority Mindset!

Alright, well, awesome! Thank you very much for your time, Jaspreet. I knew you were a busy man, so I'll let you get back to your evening.

Uh, but yeah, once again, thank you very much for coming on the channel. It's good to talk to you, and we'll catch up soon. Thank you so much! That's... I really appreciate it. Thank you again!

So, thanks again to Jaspreet for taking the time to come on the channel and have a chat. I hope you guys enjoyed the video. Please leave a like if you did, subscribe to this channel, and also go over and subscribe to the Minority Mindset. And of course, drop him a comment; let him know that you came from this video! I would really appreciate it.

But thank you guys for watching, and I'll see you all in the next video. Big thanks to Six Park for sponsoring this video! Six Park is an Australian business that aims to help people get started investing passively.

So they have five core investment portfolios, of which one will be recommended for you based on an understanding of your own personal factors such as your investment time horizon. Now, why I've teamed up with Six Park is that this is no active fund.

The five core portfolios are based on the principles of passive investing. It's just that the ETFs within the portfolios change based on your own personal factors, so the platform also has a really solid interface, which is easy to use, and it really helps you understand how your money is being invested and also the progress you're making with your investment goals, which is something that I really like.

But the best thing about the partnership we've got going is they've decided to lower the account minimum to help more of you guys get started on their platform for less. So traditionally, Six Park had a $5,000 account minimum; now they've just lowered it to $2,000!

So I really appreciate this gesture, and if you'd be interested in taking them up on this offer, feel free to follow the link in the description below. You can have a look; I've got my own landing page and everything. They've done a really good job with this; I absolutely love it!

But yeah, if you're interested, feel free to check them out, and thanks to Six Park for sponsoring this video.

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