PASSIVE INVESTING
This type of investing focuses on holding investments for a long time instead of trading every day.
What is passive investing?
Value investors buy companies when they are priced lower than what they are actually worth. This is called being this.
What is undervalued?
This account is used for emergency funds, vacation funds, and savings for larger expenses.
What is a savings account?
The main goal of passive investing is to build this gradually over time.
What is wealth?
After buying an undervalued stock, value investors mainly do this.
What is wait (hold long-term)?
This type of account is used for everyday spending.
What is a chequing account?
This type of loan is used to help buy a house and is larger than any other type of loan. It also requires an up-front deposit.
What is a mortgage?
Passive investors avoid trying to get rich this way.
What is overnight (or quickly)?
This investing strategy looks at characteristics or “traits” that have historically led to better returns.
What is factor-based investing?
These banks are known as the "Big 5" commercial banks in Canada.
What is CIBC, BMO, RBC, Scotiabank, and TD?
This low-risk investment involves lending money to a bank, where the bank guarantees your original deposit back, plus interest.
What is a GIC (Guaranteed Investment Certificate)
Passive investors trust that even though markets go up and down short-term, over many years they tend to do this.
What is grow overall?
This famous investor used value investing principles to develop his investment style.
Who is Warren Buffet?
This new account in Canada is designed to help you save for your first home tax-free.
What is FHSA?
Someone regularly transfers money from their bank account into an index fund that holds many stocks. This approach spreads risk and follows the overall market instead of trying to beat it. This strategy is called...
What is diversification?
One disadvantage mentioned in the video is that passive investing may have smaller returns compared to this type of management.
What is active management?
Value investing usually focuses on established businesses instead of risky assets like this digital currency mentioned in the script.
What is cryptocurrency?
This term is used to describe when you borrow more money to pay off old debt.
What is a "debt trap?"