This video guides beginners on starting online investments with minimal capital. The speaker, a self-described millionaire investor, compares the results of a $100 investment across five asset classes over four years: individual stocks, REITs, cryptocurrency, gold, and index funds. He evaluates each investment based on learning curve, passive income potential, tax efficiency, risk level, and overall return.
Individual Stocks: High learning curve, good passive income potential (dividends), great tax efficiency (using ISAs/Roth IRAs), high risk, varied returns (from -32.34% to 552.24% depending on stock selection). Fractional shares allow for lower initial investment.
REITs (Real Estate Investment Trusts): Moderate learning curve, great passive income potential (high dividends), great tax efficiency (using ISAs/Roth IRAs), medium risk, relatively stable returns (small loss of 1.41% in this example, but overall 10.52% up due to dividends).
Cryptocurrency: Moderate learning curve, moderate passive income potential (staking, yield farming), poor tax efficiency, very high risk, highly volatile returns (552.24% return in this example, but this is atypical). Requires careful security practices.
Gold: Low learning curve, zero passive income potential, good tax efficiency (depending on type of gold and country), medium risk, steady growth (40.1% return in this example). Can be used to transport wealth across borders.
Index Funds: Low learning curve, moderate passive income potential (dividends), great tax efficiency (using ISAs/Roth IRAs), low risk, consistent returns (79.57% return in this example). A very diversified investment approach.
