MI097: Building a Stock Investing Education Business w/ Austin Bouley

MI097: Building a Stock Investing Education Business w/ Austin Bouley

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Robert Leonard (00:02): On today's show, I chat with Austin Bouley about   how to build a side hustle and/or a business on  social media, how to build systems and processes   in your side hustles, how to deal with stock  market crashes, four hobbies everyone should have,   why everyone is a trader, and much, much more.  Austin is a young investor, entrepreneur and   podcast host. He founded the investing software  platform, education company, and podcast called   The Impeccable Investor. Austin might not have as  much experience as some of the other guests that   we've had on the show, but Austin is only 20 years  old and I love what he's doing in this space. And   I can't wait to see what he's able to build. I  joined Austin on his podcast on the episode that   was released on April 29th, 2021. I've put a link  to that episode below in the show notes if you're  

interested in checking that out as well. Robert Leonard (00:57):   Now, without further delay, let's get right into  this week's episode of the Millennial Investing   Podcast with Austin Bouley. Robert Leonard (01:28):   Hey, everyone, welcome to the Millennial Investing  Podcast. As always, I'm your host, Robert Leonard.  

And with me today, I have Austin Bouley.  Austin, tell us a bit about yourself and   what got you to where you are today.  What got you interested in finance?   Austin Bouley (01:43): I got into investing in the   finance world when I was 16. I was sick one day  from school and I somehow found myself watching   a documentary on Warren Buffet, I don't know  how I found myself watching that. Actually,   it wasn't on Warren Buffet, it was on the richest  man in the world. And I was like, "Ooh yeah,  

let's watch this. Let's learn something  cool from it, maybe I can, I don't know,   become rich one day." And so I was watching  that, and Warren Buffet came up. They had   some guy who was trying to get Mars, some guy  who was trying to extend human's life through   robotics and science and all that stuff. And then  there was Warren Buffet who, all he did was he   sat down and he read about companies, read about  stocks and he was a billionaire. And I was like,   "That's so easy. I can do that. I had a bit  of a math background, that should be easy."   Austin Bouley (02:28): And so I started on that journey and I   started researching more about investing. And the  more I started researching, the more confusing it  

got. That was back in 2016, and back then, there  wasn't much info online about investing, and I   should have thought about books, but I didn't. And  so it was more of like, "Okay, I know what these   ratios are, I don't fully know what they mean and  I don't know what I'm looking for in each ratio."   So as I was doing that, it just kept getting  confusing and overwhelming because I was like,   "Okay, so this ratio is low, which is good,  but then this ratio is high, which is bad. So   does this equal each other out or does it mean  it's good because this one's good?" And it really   was just kind of like a lost cause for me. Austin Bouley (03:07):   So I moved on from the investing world, and of  course, like almost everyone who starts in the   stock market, they all see those day trading ads  and videos on YouTube. So I saw one of those and  

I was like, "Okay, this is all about patterns.  It's quick and awesome." The reason why I was   drawn to it was because in the finance and the  long-term investing world, you don't know if you   pick the right stock for at least a few years.  You can buy a stock, but you don't know if it's   going to go up and make money for another year  or so. And so, because of that, I like knowing   if I made the right choice sooner than later,  and so with day trading, I was able to know   instantly whether I made the right choice or not.  A lot of good comes from that and a lot of bad.   Austin Bouley (03:47): And so I started day trading and it was more   on the paper trading scale. What really happened  with that was I was just using fake money,   but I was following these guys on YouTube. I  was researching every pattern, every strategy,  

everything that I could do. After a while, I  figured out, "You know what, this isn't the best   strategy," because I thought I knew what I was  doing on paper trading, I had confidence. And then   next thing you know, I took it with real money.  And from the real money, I ended up losing a bunch  

of real money from that. And so I was like,  "All right, day trading is not the thing."   Austin Bouley (04:19): And then I found my way onto swing   trading, which is holding a stock from a week  to three months. So I'm basically a shorter term   investor. I am looking for value that's going  to play out in the next week or month. And so   that's really what came down to it as I found  swing trading, because I could know if I was   right sooner and I could also use both a technical  and fundamental analysis when looking at stocks,   and it just opened up a whole new world. Now what  I do is I do very data-backed science. I make sure  

that all the odds, all these statistics are in my  favor when I make an investment slash trade.   Austin Bouley (04:55): And so that's how I got into it,   and it's just kept my interest ever since. Because  we learn, as you get into finance world, you learn   about things like compound interest, how if you  stay invested, there's literally no way you don't   become rich over time. And so concepts like that  and just living a life where you can have peace   and have freedom because you know that your money  is under control and your money's not controlling   you, it's just an amazing way to live life expect,  especially being that I am still a college senior,   but hearing stories from my friends about  the debt that they're taking on from college,   just the overwhelm and the confusion. And  when you add debt and money problems into   just a confusing situation in general like  what you want to do with the rest of your life,   it makes it a lot harder to make that choice  or figure out what you're trying to do.   Austin Bouley (05:39): When there's less money problems,   you tend to figure out things a lot  better. With that all in general,  

that's how I started to in the finance world,  I found Warren Buffet, I found day trading and   I've settled on swing trading. And I really  just love how I can use money to improve life,   improve my future, and just overall have a  more peaceful and more free life when you're   in control of your finances. Robert Leonard (06:04):   Before we get into a discussion about investing, I  want touch on your social media business. How and  

why did you get started on social media? Austin Bouley (06:12):   The story of how I got I started in social  media is actually a funny story to me.   I am an introvert, you're not going to see me  on stage talking to people, leading a crowd or   anything like that. But what I was doing is, I was  very good with numbers and patterns, like I said.   I went from investing to day trading to swing  trading, and swing trading is where I found my   grounds. And because of that, just looking at the  market and watching the market for like two years   straight, every single day, you just start to  pick up on patterns and ways that the stocks move   and react to certain news. It's just something  that happens when you're so used to stocks.   Austin Bouley (06:46): And so when that happened,   I started noticing some patterns in the stock  market. And around this time, it was March, 2018,  

so I had been in the market for about two years  then. And I noticed some things when the market   started to crash, I was like, "Okay, it looks like  it's going to crash further and all this stuff."   I had friends who I was explaining that to,  and the people who are actually interested in   stocks were like, "Wow, that's really cool.  I would love to hear your thoughts on it,   more on a daily basis." I was like, "Oh yeah, I  could do that." And so that night, I went into the   community college that I was at and I went into  their back in the library and no one was there.   Austin Bouley (07:21): And I sat down and I recorded   a video. I just simply got on my laptop,  I did a simple screen-share, and I said,  

"All right, guys, this is what I think the market  is doing. This is what I think it will be doing,   and why." And then I made that video. It  was probably a five to 10-minute video,   and then I put it up on YouTube. And then from  there, I just stepped back and did my thing.  

And then I came back to that video maybe about two  months later and it had, I think it was like over   2,000 or 3,000 views, which for me at the time,  or for anybody starting on YouTube at the time,   was just insane, having nobody to all this. Austin Bouley (07:56):   And in addition to that, there  were a bunch of comments of like,   "Man, I would love to hear your thoughts more,  tell us about this stock, tell us about this,   whatever." I didn't really know what I was doing,  but then my social media journey just became me   documenting the process of me learning more  about the market, because I continued to learn   more every single day. And so, because I'm one  step ahead of the beginner, one step is general,   but because I'm ahead of the beginner, I'm able  to share what I learned and how I learned it,   and I'm able to simplify into that process. Austin Bouley (08:25):   And that's what I love doing because  when I got started, as I was explaining,   investing was really confusing and overwhelming  and there's a lot of things you need to consider.   And especially when you talk to investment  professionals, they make things sound so complex   and they don't know how to put it in simple words,  because they got their MBA or their doctorate in   this stuff and so if they know all these complex  words, but me coming from someone who just learned   it, I was able to turn around and to explain  it to people in a very simple and easy way,   and that's what I love doing. Austin Bouley (08:51):  

So it started off on YouTube, I just started  making videos about stocks and about the stock   market and then it just started growing  from there. And then people said, "Austin,   I would love to follow you elsewhere." And so they  said other places. After YouTube, the next big   thing that I started was Instagram. On Instagram,  I started that as another way to reach people. So   really, it's just a way of sharing that  information, sharing that knowledge and   helping people grow and become more knowledgeable  on the stock market and reaching them where they   are. I know I had an audience on YouTube, and  an audience on Instagram, and then I was like,   "Well, I might as well just do podcasts as  well." And so I started making a podcast.  

Austin Bouley (09:28): That's how I got started and why I got started   on social media. And so now that's basically what  I do full-time, is helping people with investing   through those platforms. Yeah, I really enjoy  it and they all have their pros and cons,   but I think get into that here soon. Robert Leonard (09:45):   How were you able to grow such a  large following on Instagram?   Austin Bouley (09:49): So how did I grow such a large following on   Instagram? It's a really good question. Basically,  how it went was, I started it, I think it was   in late 2019, is when I started it. That may be  wrong. Somewhere in 2019, 2020 is when I started   on Instagram. What I did was my main goal is,  I went around and I followed a bunch of people  

on finance and stocks on Instagram, and I was  looking through their content and it looked like a   bunch of generic stuff that was all copy and paste  from one another. And it was just really annoying   for me to see, because it really wasn't anything  educational or informational. So it was just,   oh, this? oh, that? It was like a bunch of, I  don't know, it's hard to explain, but it wasn't   something that people can actually use to learn  about stocks and to grow their knowledge.   Austin Bouley (10:35): And so, because of that, from day one, I do this   on all my platforms, but it's just to over-provide  and to over-deliver, to make sure that people are   actually learning how the stock market works in a  simple and easy to understand way. And so, because   that was my goal from YouTube, I brought that  same thought process into Instagram. And so what   I started doing, the same thing with YouTube, you  don't know which video will do super well, so you   just have to make a bunch of videos and eventually  one will do well, and then you can start to copy   that and mimic that and then continue on. Austin Bouley (11:06):  

And so I took the same idea into Instagram. So  I was like, "All right, I don't know, was going   to do well and what's not, and especially  in the beginning, when I have no followers,   I need to be seen." So I just started posting as  much as I could. So I stuck to the same idea and   I'm still holding to it today where I post three  times every single day for posts, and stories,   I try to do every two hours. And to most people,  that may be a lot, but that's what works for me.  

So in the beginning, that's what I was doing,  and I still try to do that now. And it's just   because if I can get my knowledge out there, my  message out there, and people can see it more,   then I should have more followers  in return, and that's what I did.   Austin Bouley (11:42): So that's was my idea on how   I should use my content. But at the same time,  the content that I was pushing was very easy to   follow content like, "Hey guys, this is what a  dividend is. This is what the stock market is.   If you want to make money every single month  through dividends, these are the stocks you can do   to do that. Oh, okay. Are you curious how you  should be investing based on your age? Here's   a breakdown of how that gets done." And so  a lot of these posts that you'll see around  

in Instagram is awesome to see because of some of  them were started by me, these most viral ones.   Austin Bouley (12:12): And that's really what I did, is just make truly   educational content that anybody can understand  and that people want to share to help others. And   so my idea was all around educational and viral  content. And so that's the type of content that   I made, and I did that three times a day, and I  shared my stories. And on the stories strategy   part, it was more about being personal and  educational and building a relationship with them.   So what I was doing there was I was doing weekend  Q&A's every single weekend where you can ask me a   question and I will give you an answer. I was  doing things like stock news, what's going on,  

here's what I'm seeing, and why. And then  I was throwing in some personal stuff like,   "Hey, I'm at... I'm doing a pickleball  tournament this week," or whatever else.   Austin Bouley (12:54): And because of that, I was able   to build a relationship with my audience, as well  as giving them some great knowledge and education.  

So that was my basis for that, so that's where the  bulk of my growth came from. I also did a bunch   of shout outs with other accounts, AKA, when  accounts have a similar-sized following to me,   we would share each other or do a cross  promotional post, for instance, like the top 10   highest paying dividend stocks in the S&P 500.  And then on my post, it would have the first five,   and on the other guys', it would have six through  10. And so we would link back to one another,   and those are great ways for growth as well. Austin Bouley (13:29):  

And just a lot of cool hacks like that we did.  And yeah, that's how I grew my social media   following on Instagram. Robert Leonard (13:36):   When it comes to content creation,  how do you handle that logistically?   Are you the one creating and posting every piece  of content on your page or do you have help?   Austin Bouley (13:45): Content creation can be a chore,   especially the amount that I was posting. And  so when I first started, yeah, it was a lot.   I was doing it all myself, it was just me, I  wasn't making money, so I had to do it myself.   And so with that, I would stay up late, there'd  be hours into midnight or whatever on multiple   days creating content. Because if I'm doing three  a day, that's, what? Like 21 a week or something.  

It's crazy. And so with that, I tried to make  sure I had as many original posts as possible,   I wasn't repeating. Yeah, that was a lot of  work. The process in the beginning was just me   coming up with what I wanted to teach with the  questions that I was getting and then finding a   way to make it useful and to display it on a post  that people can understand in a quick manner.  

Austin Bouley (14:30): And so that's what I was doing   on Instagram with content creation at first.  And then I did that for a good year. So for the   first year of Instagram, it was literally only me  creating content every single week. And that was a   weekly thing that I would have to do to stay up to  date. And so that's what I did. And then now that   I'm starting to get some more of a larger scale  because after the first year, I think hit around,   I want to say 120, 130,000 followers on Instagram  just from posting that much. And then I was like,   "Okay, I need someone to free up my time because  I can do better things with my time," in the   nicest way of saying that. Austin Bouley (15:04):   And so with that, I found a virtual assistant  that had some experience with Canva, which is the   platform that I use to create content. With  that, I would split up the content. So at first,  

it started with, "Hey, I want you to make  these types of posts." And they were just very   viral, funny, Twitter type posts. And so it was  very easy for them to make. And then I would make   the purely educational ones. And so it helped  free up my time. And so from there, it was like   a 50/50 split of, "Hey, I want to create this  content and you can create the easier content   that takes less knowledge." Austin Bouley (15:40):   And then as it progressed, I then got another  virtual assistant who had knowledge of the stock   market and also has a great experience with Canva  and Photoshop, and they took the reins from there.   So basically, what I do is I go, "Hey, I want  content on this type of subject or we're going   to cover these types of questions." I'd be like,  "Okay, people are asking this a lot, let's cover  

this." And what happens is, she's really good and  she makes the posts and I review the post before   she posts it. And then, yeah, it's been good. And  so with that, it was more about finding the right   person because again, content creation is very  hard, but the thing that made it easy to adapt is,   one, the virtual assistant that I'm using now  came from my Instagram followers, so they are   very aware of my agenda, my content, the way  that it's usually set up. And because of that,   it works really well. Austin Bouley (16:31):   Also, having posts that I've done in the past,  it allows them to go back and review, "Okay,   how would Austin structure this type of content?"  And so they can see my normal formatting,   my normal setup. And because of that, I had a  setup checklist item to show them how to make   great content. And because of that, it was very  easy to transition someone in to taking over that  

role for me. Now, at the moment, and still today,  I do review every single post made because I want   to make sure that it fits our agenda and helps  them understand and it doesn't confuse them more   and that it's great content. And so I do still  review that, but I'm no longer making content.   Austin Bouley (17:11): That's on the content creation side. When   it comes down to scheduling and all that, I use a  software called Later.com. Later.com allows us to   schedule with captions and all that great stuff,  and so that's where we schedule posts. And then on  

Creator Studio by Facebook, I schedule the IGTVs,  and the IGTVs are really just the YouTube videos   packaged and to an IGTV. And that's a great way to  reuse content. And so I'm able to reuse it because   not everyone who follows me on Instagram follows  me or watches my YouTube. And so because of that,   I'm able to get views on both sides, and so  it's really great to see that. And so, yeah,   just repurposing content, whether that's from  podcasts to Instagram, to YouTube, whatever and   just scheduling it out so that it becomes less of  a hassle, so I don't have to constantly post it   myself, and it's a great way to do it. Austin Bouley (17:55):   And now, if someone is listening to this podcast  and wants to get started for free, and they want   to schedule out their own content later.com does  cost money, but you can always go to Creator  

Studio, which is a thing created by Facebook,  and you can schedule a post there for free.   The only thing that I found is that they're  posting content quality, like when it actually   gets posted to Instagram is quite low. And so you  just have to be careful of that, but later.com   does a great job and it's fairly cheap. So  that's how my content creation schedule goes.   Robert Leonard (18:23): I noticed you've recently launched a   stock investing software. I'm sure part of your  Instagram plan is to leverage your following,  

to grow that software into a business, but  what else is your long-term goal with The   Impeccable Investor? Austin Bouley (18:36):   Yes. I plan on using the Instagram to  help leverage the software because one,   I created the software out of the questions  and the need that was coming from my Instagram   audience. So they were like, "Austin, we need  this, we would love this." I was getting the same   questions over and over, and I realized I could  solve that with the software. And so that's why  

I pushed the software on Instagram because it's  really helping people solve their questions and   the main questions that I'm getting, like, how do  I find the right stocks? Where do I buy? Etc. And   because of that, that's why I use the Instagram to  promote it because this is the perfect thing. But   for a long-term goal, the amazing part is I used  to sell like a mentorship type course program.   Austin Bouley (19:13): And with that, because I am one of those guys in   the stock market who hates the scammers, who hates  all those people, and because of that, I try to be   super honest. And that means that if I'm selling  information and a course on a specific topic,   I really did not want to, or did not like sharing  any part of that course for free on YouTube,   podcasts, wherever, because I wanted the  people paying for it getting only that   exclusive content. And so the amazing part is  that I no longer sell that mentorship/course,  

and that's been over for a while, but with  that, now that I'm no longer selling for   that content, I'm able to give  everything that I know for free.   Austin Bouley (19:52): And so with that, really my goal behind   and my long-term goal for The Impeccable Investor  is to just truly help people and to share as much   content as I can. I want the information that I'm  sharing to be useful for decades, to be useful   for centuries if possible. And with that, I just  want to help as many people as possible. I love   the messages that I get. I know this is going to  sound corny, but I love when people say, "Austin,  

you changed my life." "Austin, I'm investing now  because of you." "Austin, my kids, we're working   on their retirement account." Because all that  stuff is just great to hear. And we live in a   world, especially I know people bring this up a  lot, but our public schools system doesn't teach   investing, and it doesn't teach finances, and it  doesn't teach you how to manage your money.   Austin Bouley (20:32): And because of that, if I can   just help one person from that journey coming out  of high school or in high school to manage their   finances just a bit better, then I would say  my job has been done. And so, because of that,   really my long-term goal with The Impeccable  Investor is continue and do our best to give   as much information for free, and make it as  simple and easy and understandable as possible   so that as many people in the world can understand  it. And so that's really the goal with it. And I  

love that I'm able to do that full time. Robert Leonard (21:03):   I posted on Instagram a while back saying  that the reason personal finance isn't   taught in school is because you'd realize you  don't need to pay them as much as you want.   You posted something similar recently saying that  there's a reason why traditional education teaches   you nothing about financial education. The system  is designed to keep you in the same place. Expand   on that quote a bit for us. Austin Bouley (21:26):  

Yeah. We live in a world where money talks. The  person who has the money is going to set the   rules, so corporations, lobby, politicians, they  get certain laws done. People with money, just   tend to make the rules and set things the way they  go. And when you set the rules and you have money,   I'm not saying this is like, again, every  rich person is selfish, but typically, you're   going to set up rules, anybody would do this. If  anybody is in this position, they're going to set   up rules and laws that keeps them in power and  that helps them make more money. And so that's   just human nature, that's the way that we are.  And again, there are people who try to change that  

and try to be different. And that's awesome, and  we should support those people. But in general,   we're a very selfish type of people. Austin Bouley (22:09):   And so if we have the right or we have the  ability to make laws, we're going to do it so that   it works out in our favor. And so I believe that  happens with the school system as well. The school   system doesn't teach finances. So they mention  things like in math, you'll do some credit card   finance, you'll do some stuff like that, but it's  not emphasized and it's not pushed, or at least as   much as it should be. When people get out of high  school, they don't know how to do their taxes,   they don't really know or how to take advantage  of a credit card to build up credit so that they   can buy a house sooner without being in debt.  They don't know how to use these things in this  

world to benefit themselves. They just know  how to be a consumer because a consumer is   the default mentality. Austin Bouley (22:52):   If you're not taught to be an investor, if  you're not taught to think about the upside,   then you'll just by default be a consumer and  live in that world. And it's not like we're   training you to be that, you're just stuck in  that because you don't know the other way. And so  

that's where I was going at, where the rich  are controlling that. And so the reason why   I brought up the rich before I mentioned that  thing about the public school system is because   the rich, our banks, our institutions, are people  with, I'm going to mention this, is credit cards.   And the reason why with credit cards is because  credit cards make banks, makes institutions so   much money. And you see this because they're on  colleges, they're like, "Hey, we'll give you this,   we'll give you a free lunch meal if you take a  credit card, if you sign up for our credit card   today." Or, "Hey, we'll do this." Austin Bouley (23:35):   And again, I'm not saying a credit card is  bad, obviously you can use it right, but we're   not teaching them how to use it right. And the  financial institutions and the people who control   that aren't going to teach them how to use right  because if people were using a credit card right,   AKA using it to build up credit and paying off  the amount that they owe every single month,   then their credit card companies would not  be making money. And so, because of that,  

it's all set up to help build and make people  who benefit from consumerism make more money.   And so with that, the rich, as in the people,  the banks, the institutions, the corporations,   they're not pushing or helping the  public school system or any other system   of financial education. Austin Bouley (24:17):   And so that's where I was going is the system  is designed to keep you in the same place,   because when you're in the same place, you're  a consumer and you're going to help them make   more money. So anything that they do or anything  that an individual does to help educate them is   going to be stopped, is going to be pushed out  against, because that means that they can't make   as much money as they used to make. And so I hope  I didn't go on a tangent there, but that's really,   my belief is that the public school system and  traditional education doesn't teach you what you   need to know about finances at this moment. And  so we can somehow push it into the public school  

system, you need to learn yourself. Austin Bouley (24:52):   And that's why the number one goal of everybody  should be to be as self-learner, whether that's   with finances or your job, you need to learn how  to learn. And so that's something that I'm really   passionate about and why I support, or I should  say, my business supports nonprofit and a high   school that teaches financial education. And so  I think that's a big deal and something that we   need to work on doing better at. Robert Leonard (25:14):  

A lot of people are currently worried about  an impending recession in stock market crash,   break down the history of stock market crashes  over the past hundred years and explain why   investors shouldn't necessarily be worried. Austin Bouley (25:25):   I wish I knew with certain the history of  all the crashes and exactly what happened,   but I don't, and I know that there was the 2000,  I should say, the 1999 to 2000 dot-com bubble,   and back in 2008, and then the 2016, and  then whatever else. But what I do remember   is the ones that I've gone through, and I  wouldn't consider them crashes obviously,   but the major downturns that I've seen so far  that I've been in the market. So we've had March,   2018 and then March, 2020. And so with those, a  lot of people get scared, and those weren't even  

real crashes, but being and having the audience  that I had then when those went through, those   sharp crashes, or I think it was about maybe  like 10% in two days or something like that.   Austin Bouley (26:06): It's not real crashes,   but still something scary, I heard a lot from  people, "Austin, why should we be investing? I   just lost money. I don't know what I'm doing,"  whatever. And when I hear those questions,   I realize that people don't understand the  long-term vision, they don't understand why   they got into it in the first place. And so what I  see is that a lot of people think about the short   term and how much money they can make right now,  but they don't consider the long term and what   happens. Regardless of how good the economy  is performing, we will always see a recession   or crash happen anytime in the market. It happens  and it's healthy for the market to crash.   Austin Bouley (26:42): It reset values, and it gives us time to grow and   come back from it. And so with that, the market  needs to crash occasionally. And when it does,  

you need to have your mindset right. You need to  understand that in the long run, you're going to   make money. And so I think the main problem with  soccer market crashes is that people get scared   because they don't see the long-term vision or  they're taking more risks than they should. And so   there's two ways to combat that problem. The first  one is they don't understand the long-term vision,  

is one, they need to stop looking at their  phone and looking at their P&L or the profit   and loss every single day. Austin Bouley (27:16):   They shouldn't be doing that. They should  be looking at it on a year-to-year basis,   on your performance if you're investing long-term.  And so when you look at your year-to-year return,   then you can start to get a more unbiased  opinion, because as investing and we're looking   for long-term profits and appreciation and price,  then we're looking for that long-term growth. And  

if we watch the daily movement, then we're going  to get pulled in to the emotions of the everyday   stock market. And when we get pulled into that,  we're going to have emotions of worry, of fear,   of whatever, and instead if we look at the  yearly returns, we'll have a better keeping   of the long-term vision. Austin Bouley (27:50):   And also to get the long-term vision, you  need to understand compound interest. If   you don't understand that staying invested and  holding stocks, quality company stocks through   the long-term actually generates amazing wealth.  And so you need to remember the long-term vision   is where you're going. You need to hold a great  stocks for a long time to make real wealth and  

make money. And in order for it to work, you need  to keep investing. So whether the market is down,   you need to stay invested and keep investing  in the market. And so crashes tend to scare   people away from continued investing.  And so it all comes down to mindset.  

Austin Bouley (28:23): When you see a stock crash,   you should be thinking, "Wow, all these  stocks are on sale." If they used to trade,   like let's say a quality stock, I'm going  to say right now, let's just say Apple,   I'm going to throw out some random numbers. Let's  say Apple is trading at $300 and then a crash   happens and it's now trading at, and those would  be crazy crash, but let's say it's trading at $50.   You're telling me you don't want to buy Apple  for 50 when it's previously traded at 300 and the   company is still the exact same? That is a great  company, trading 50, and it's been at 300 before,   and it's just down because of the crash of the  overall market. Then you should be buying that,   that company, that stock is on sale. Austin Bouley (28:59):   And when you can buy that company on  sale, then you can lead the way for   long-term exponential growth. Another factor  that you need to consider is when crashes happen,  

you don't need to be scared, you need  to understand now is the time to invest.   And the second problem is that they take more  risks than they're okay with. So you need to   understand the risk that is involved in the stock  market. If you're invested for the long term that  

you need to be okay with losing 100% of your  portfolio. Again, I'm not saying that's going   to happen and that hardly ever happens, but when  you set the expectation that you're going to lose   all your money and you end up making  money, then you're going to be happy.   Austin Bouley (29:32): I'm not saying you need to   fear that all the money that you put into the  stock market you'll lose, but I am saying just   understand there are risks in the stock market,  and if you're not okay with that risk, if you're   not okay with the stock going down and you losing  money, then you need to understand that the stock   market may not be for you. So a lot of investing  and a lot of the stuff that I teach on my YouTube,   on my Instagram, on my podcast is that you need to  understand yourself before you get into investing,   understand how much risk you're okay with, how  long you like holding, what sector you know best,   and focusing on that sector. And with that comes  to the risk. You need to understand your risk.   Austin Bouley (30:07): If you can't handle losing money, if you   can't handle losing 40% of your portfolio for a  short term, then maybe it's not for you. Maybe you  

should put your money and a savings account, maybe  you should work on handling risk better by working   on small risk and then slowly increasing your  size. Or maybe you should just buy tea bonds, or   treasury bills, and maybe you could make a safer  return that way. Anyway, that's when it comes down   to crashes, is that crashes happen, they're always  going to happen, but you need to understand it,   change your mindset around it. And that it's okay  to take risk, especially on quality companies.   Austin Bouley (30:41): I'm not saying stocks that   because of this crash are doing terrible  and they're never going to recover,   I'm saying companies that were doing well,  adjusted to the crash and are still doing well,   investing in stocks that drop on companies like  that are what you should be focusing on. Anyways,   that's my thoughts on stock market crashes. Robert Leonard (31:00):   You recently talked about this idea around  hobbies that I really liked. You said that  

everyone needs four hobbies. What are those  for hobbies and why are they so important?   Austin Bouley (31:10): Yeah. This goes back to what I was mentioning   before, where I was saying people should not  be watching the market 24/7, they should not   be watching the daily movements as much as they  are, and they think it's so important, but it's   not. And the reason why is because they're bored  and they don't have ways to spend their time.   So they use their boredom and they use their  free time to just stay stuck on the market.  

And when they do that, you'll have a lot of bad  effects come down, like you won't sleep well,   you won't have time with family, you all be  isolated and you'll worry more because you're   constantly watching the market move. Austin Bouley (31:41):   And so my idea is that you need four types of  hobbies. One that makes you money, one that   keeps you creative, one that keeps you in shape,  and one that helps you build knowledge. And so in   order to succeed in life, I think you need one of  every one of these things. So there's people who   focus all on work and then their body suffers,  and then they can't live a long life because   they neglected their health. And then there's  people who just do the same thing over and over   and over, whether that's for a job or for life or  whatever, and that routine, although it's great,   does not keep them creative, does not keep their  mind thinking, and thus, it brings them to a   little low in their life, and they don't have as  much imagination or happiness because they haven't   stretched or used their brain that much. Austin Bouley (32:26):  

And then also, as we can say, is knowledge. As  I mentioned before, is that you need to be a   self-learner, you need to teach yourself to learn  and to grow. And that's going to be the way that   you set yourself apart and teach yourself how to  succeed in life, whether that's with your job,   money, relationships, whatever, when you're  a self-learner, you are a step ahead of the   curve. So if I just go over my ones, my hobbies  to make money is Instagram, and my podcasts,  

and YouTube. That's what I started. It started  off as a hobby and now turned into a job,   which is really cool. Austin Bouley (32:58):   And I'm starting more things, I'm going to pick  up a real estate and whatever else, all these   things are fun, things that I thought were cool  and they're going to help me make money. Again,   I've done other stuff before where I enjoyed, like  I said, when I was younger, I was good at math.  

And so I would tutor people. And that was my  hobby. That was fun for me, but also made me   money. There's things that you can charge for, or  that you can do, or maybe things that you've been   interested in learning that you could find a way  to learn to do and make money with. And so there   has to be a hobby where you can make some money,  and that can also be your job if you enjoy it.  

Austin Bouley (33:30): The next one is you need a hobby to   keep you creative. You need to stretch your brain,  you need to think. And I once heard that the best   way to keep your brain active and creative  is to have an idea journal and to write down   20 new ideas that you've never heard before every  single day. And at the end of a month, your brain   will be stemming with ideas at everything you  see. And why? It's because our brain is a muscle,  

and if we don't train it to think, if we don't  train it to get creative, like paint, draw, think   of things that we haven't seen before and try to  imagine it, try to draw it and try to make it.   Austin Bouley (34:04): If we don't keep our brain that active,   then that muscle is going to fatigue, and then  we're going to lose our creativity skills. Again,   if you're at a point where you think you've lost,  it's fine. It's a muscle, you can get it back,  

it's just going to take some work. And so I think  everyone should have a hobby that keeps them   creative. The next one is you should have one that  keeps you in shape. And so for me, it's a mix of,   I go to the gym, but the one that I love, the  hobby that I enjoy is tennis and pickleball.   If you don't know what pickleball is, it's like a  mixture of tennis and ping-pong. And so what it is   that something that I enjoy, I love racket sports.  And so I go and I hang out with people and I play  

racket sports, and it keeps me active. Austin Bouley (34:41):   It gets me in the sun, I get my vitamin D, and  this is really fun to do. And so I think everyone   should have that hobby that keeps them active. And  so for some people, they may be like, "Okay, the   gym is cool, but I don't enjoy it." Well, hobby  is something you enjoy, so maybe you enjoy walking  

past a lake, and maybe you should walk that lake  more, or maybe you enjoy scootering. I don't know,   whatever it is that you enjoy that gets you moving  is something that you should make into a daily   routine and your life or a weekly routine. The  last one is you need a hobby to build knowledge.   So you need a hobby to help you learn more. Austin Bouley (35:12):   And so with that, maybe it could be, "Okay,  every single Saturday for one hour, I'm going   to learn about X topic. I am super excited  to, let's say, learn about cybersecurity,"   or, "I'm super excited to learn how I can save  more," or if you've never done with credit cards,   and we mentioned earlier in this podcast is, "I'm  curious to learn how to use credit cards smartly,   to help me instead of them crush me." And  so you give yourself two hours on a weekend,   every single weekend to all learn that. And learn  something that you enjoy, it doesn't have to be  

money related, it doesn't have to be finance  related, just find something you enjoy and   start learning, because school does a terrible job  at teaching you how to get excited to learn.   Austin Bouley (35:50): They give you things that no one   likes and they force you to read it. Well, you  need to get that excitement for learning again.   And so start with whatever makes you excited and  start learning that. And then you'll jump from   that to something else, to something else, and  then you'll eventually keep learning and build up   that hobby and that muscle of learning. So, yeah,  I think it's great to have those four hobbies and   something that everyone should have. Robert Leonard (36:11):  

Warren Buffet, who is one of my favorite investors  has a quote that says, "Most people get interested   in stocks when everyone else is, the time  to get interested is when no one else is.   You can't buy what is popular and do well."  When he said that quote, alternative assets like   cryptocurrencies didn't exist, so  I'd add that to his quote today.   But how do you see that quote relating to the  conditions of today's stock and crypto markets?   Austin Bouley (36:40): I know you're more of a value investor, and so   Warren Buffet being a value investor, that  quote is very true and what he's saying. Like   if you want to invest in value, if you want to  invest in a company that is going to do well in   the long run, then you need to find a stock or  company before the mass market has jumped on it,   hyped up the price and driven the PE ratio. And  so with that, that is very great for a value  

investing type of approach, and something that  I totally agree with from that standard. Now,   I myself, I'm a swing trader, so I'm trying to  profit within a week to three months of holding   a stock. And with that, I don't really care where  the stock is, I don't care where it's going to be   in three years, I don't care where it's going  to be in a year, I care where it's going to be   in the next month or two. Austin Bouley (37:23):   And so with that, it doesn't matter if the  stock is a new stock or a stock that no   one knows about or a very popular stock, I'm  looking for a company that's going to do well   in the next month. And so with that, I'm okay  with buying something that people are watching,   I'm okay with buying a stock that no people are  watching, as long as the fundamentals and the   technicals are set up to support that move. That's  a great question is, where do I see the market?  

The market right now I believe is very  overextended. I do think that we see a lot   of companies that are way too overpriced right  now, and that cryptos are very overpriced.   Austin Bouley (37:58): It's very similar if you do your research   on dot-com type bubble, where if you just put.com  as the name of your company, then the stock price  

is going to rise overnight. And that's what we're  seeing with crypto, with the companies that start   offering crypto as a payment option, or let's say  Elon Musk tweets Dogecoin, or something like that,   and then we see the rise of that. And so  I think that there are a lot of companies   and a lot of cryptos that are being valued at  their fundamental level, AKA, where they actually   can support a price. So where that company or that  coin is making enough money or value to support   this price at it's at, I think it's way over  that level. So it's definitely not healthy.  

Austin Bouley (38:39): But what I tell the people   that follow me a lot, because we're mainly swing  traders and trend followers, is that just because   you have an opinion doesn't mean it's right. The  market will tell you if you're right or wrong.   So I believe in following the trends. So right  now, the trend is up, and since the trend is up,   we're going to be making monies on along and  we're going to be going along. And I've thought   the market after, or when it crashed on March  2020, I expected a way larger crash. And I was   waiting it, but even though my opinions and my  thoughts said that a bigger crash was coming,   I would have missed out on this huge long run. Austin Bouley (39:11):  

And that's why you don't want to stick to  your emotions, but follow what the market   is saying. And I would say that the market is  saying we are in an uptrend and we have been   an uptrend since March 2020, and that's why I've  stayed invested, and that's why I'm making money.   And so I believe that you need to make your  own opinions about the market, especially   reading about Warren Buffet, doing your research  on stocks, and all that great stuff that you   should be doing, but you also need to judge, where  is the market at right now? And what's going to be   happening? So if you're more of an investor, you  should be looking at companies where the stock   price is lower than the value of the company. Austin Bouley (39:45):   And if you're a swing trader and trend  follower like me, then you need to be   focusing on the trend, what is the trend saying?  And right now the trend of the market is up,   and so that's what I'm focusing on. Robert Leonard (39:54):   You also talked recently about how everyone  is a trader, inherently, I knew these things,   but I haven't really thought of it in the way that  you laid it out. Please explain what you mean when  

you say that everyone is a trader. Austin Bouley (40:07):   Yeah. Back then people would trade all the time.  I know I use the word trader a lot for the stock   market, but that's not how it was originally used.  It wasn't used for the stock market, it was used   to exchange goods, and trading is just exchanging  things, as we're a stock trader, we're hoping to   exchange a stock at a higher price than where  we exchanged it for at the beginning. So we're  

just exchanging things, and that's what a trader  is. And so if you think about it from the very   beginning, let's say one farmer had a lot of corn  and another farmer had cows that produce milk. And   let's say, the guy on one side wanted milk and the  other guy wanted another thing, and so they would   trade. And that's how they got things and they  swapped goods and barter and that whole system.   Austin Bouley (40:48): And so that's what we still do today if you think   about it. Everyone is a trader. And I'm going to  pull this, I believe, some examples that I gave in  

that Instagram post, was that some people trade  their time for a paycheck. You're trading the   amount of time you spend working every week, so  you can get paid. And so you're trading your time   for money. And that's how it works. Some people  trade tuition for a degree. Some people say,   "Hey, I'm going to pay money to go to college  to get this degree. And so I'm going to end  

up putting in time and money, so I'm going to  be trading my time and money in exchange for   a degree." And so we're all traders. Austin Bouley (41:25):   And when we start to realize that, you can start  to think about, "Wait, am I trading wisely?   What am I exchanging? And am I okay with  exchanging that?" Let's use the example of   college. I'm going to use an example and a story  of a friend that I know. So this friend who was   really good at tennis, I played tennis with him  in high school, and he got a full ride scholarship   for tennis to a two-year college. And so that was  his first option. And his second option was to go   with all his friends to a popular college where he  would get no money for, and he would have to pay,   I think, roughly like 20,000 a year for. And  so again, should he take the two year one,   or should he go to the popular  college with all his friends?   Austin Bouley (42:08): And so most people don't think of themselves   as a trader, but making that decision is a trade.  You are a trader when you're making that decision,   you're deciding, "All right, I'm going to  trade my friends and my popularity to go to   this two-year college to play tennis. I may not  enjoy this college, it may not be my first pick,  

but I'm going to go for free, and so I'm going to  exchange," you could say, "I'm going to exchange   friends and status for money and a two-year  degree, and then I can move on from there."   Or, "I can not go to that and I can exchange my  time and money to pay for this other college to   get the status and to stay with friends." Austin Bouley (42:46):   And I'm not saying one choice is right over the  other, but I am saying, you need to understand   that you are a trader and that everyone  is a trader. You are trading something for   something else, you are exchanging it.  And you need to start thinking about   every conversation you have, every decision you  make as an exchange, and you need to understand,   will this exchange benefit me? And I'm not  saying be selfish where you hurt others,   but I am saying, think about how the decisions  are affecting you, because you are a trader.   Robert Leonard (43:14): People who have been listening to the show   for a while, likely know that I am often critical  of Dave Ramsey. I like some of what he teaches,  

but most of what he teaches, I do not really  like. How is Dave Ramsey keeping people poor?   Austin Bouley (43:28): First off, I don't want to discount   Dave Ramsey because one, he's doing the same thing  that I'm doing. He's reaching the very beginner   and he's helping them get started. And that's  awesome. We need beginners to get started. And   that's what he empowers them to do with a simple  step by step or what he calls the baby steps.  

And so, again, that is awesome for those getting  started and everyone should be doing that.   But when it comes down to people who start to know  more, as in when you know better, you do better,   and so I think there are some better things that  could be taught by Dave Ramsey. And one is he   pushes for mutual funds. And so mutual funds  is a collection of stocks and companies held   to make money. So it's basically an ETF. Austin Bouley (44:10):   An ETF is just a composition of stocks to  track and whatever else. And so with that,   I think that you should be pushing for ETFs over  mutual funds. Why? Because mutual funds tend  

to be more actively managed, which means  that they have lower performance over time,   and they also have a higher expense ratio,  which means that you are paying more money   to have your money in a mutual fund, versus an  ETF, which is purely a passive investment of them   just following certain stocks, especially if you  invest in like SPY or VOO, or something like that,   which is an ETF of the overall market,  then you'll be automatically diversified   and you'll have a lower expense ratio. And  so with that means that you're paying less   money to stay invested. Austin Bouley (44:58):   And for those who don't know, if you invest in  a single stock, you're doing your own investing,   so you're not going to pay an expense  to do that, but an ETF or a mutual fund,   something that's managed by someone else or  another corporation or institution is going   to charge you money for them to do that. And so  if you want to do that, I would say you should go   for an ETF over a mutual fund, just because one,  it's more passive. So it's going to make the same,  

if not better returns than mutual funds. And it  has a lower expense ratio. Also, there are a lot   of things about Dave Ramsey, especially that's  coming out recently, like in some news about some   potential lawsuits and what he does and his firing  and hiring process that I don't agree with.   Austin Bouley (45:39): But in general, like I've said,   Dave Ramsey does a great job at helping beginners,  but when you know more or when you know better,   you should do better. And I think that there's a  lot that Dave Ramsey is leaving on the table.  

Robert Leonard (45:51): Austin, thanks for joining   me on the show today. For those listening  that want to connect with you after the show,   where's the best place for them to go? Austin Bouley (45:58):   Of course, thank you so much for having me on  this podcast. I really enjoyed it. If people   want to find me, they just have to search up The  Impeccable Investor. That's what you can find me  

at on Instagram, on YouTube and podcasts. So  my Instagram is @theimpeccableinvestor. And   so that's really where I'm at. So if you want  to follow me, you can do so. And I basically   share stock market education, stock picks, free  resources, free courses, all that great stuff,   all on my Instagram and YouTube, etc. So  definitely recommend you check that out.   Austin Bouley (46:26): Also, if you're more of a   swing trader or investor who likes to see all the  stats behind a stock, like the accuracy rating,   the risk to reward, the trend and all  that stuff with just a click of a button,   then I'd recommend you check out the software  that I have. It's really awesome, it's called The   Impeccable Stock Software. So if you want to learn  more about that, I'm sure the link will be below,   but it's www.theimpeccablestocksoftware.com/free  trial for a completely free 40-day free trial.  

Anyways, thanks for having me on  here, Robert. I really enjoyed it.   Robert Leonard (46:56): All right guys. That's all I   had for this week's episode of Millennial  Investing. I'll see you again next week.

2021-06-21 20:59

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