💥“Tengo POCO DINERO, ¿Qué INVERSIONES debería HACER?”

If you have little money to invest and want to know the best investments to multiply your wealth and secure your financial future, pay attention to this video because in this quick guide I am going to show you the same method that I followed when I was starting to invest with very little money to then go on to live off the stock market and subsequently invest over 200 million euros in my investment fund. Furthermore, if you are not applying some of the things I am going to show you next, you are probably leaving a lot of money on the table. So, let's begin. In this video, we will talk about the best investments with little money and specifically with a step-by-step method so you can apply them perfectly. Pay special attention to bonus number one and the advanced bonus because they will take you very little time to apply and will make a drastic leap in the quality and performance of your investments, and you are probably not currently taking them into account. I know that what you are going to learn today works because it has worked for me, it has worked for thousands of students, and it will also work for you if you start applying it. My personal journey was that I started investing as a hobby, like most people watching this video, then I went on to live off the stock market, and subsequently founded Trual Investments, where [sniffle] we started investing with 100 investors, and currently there are over 10,000 investors in the funds, and from barely €300,000 to over 200 million. Furthermore, it's not just that it has worked for me; at the School of the Art of Investing, we have conducted a study with over 2,000 students. It's not a one-off sample from a single testimonial, but rather we have conducted an extensive study of people who decided to participate, and the average return they are obtaining is 12.3% annually. This surpasses the S&P 500, which has historically yielded 8%, and the average investor, who according to JP Morgan obtains a return of 2% annually. This simple method I am going to show you works. So, let's start with the first part. The first step, which is the question many people ask themselves, is how to start, where do I begin? What do I do? What I started doing was what most people recommended, and it will surely be the same thing you have heard. Buy shares of large, well-known, stable, solid companies, or of indices like the S&P 500 or an ETF. And that's not bad, but the problem is that if you start with little money, you have quickly realized, as happened to me, that you don't get anywhere. It doesn't change much of your life, no matter how good your return is year after year. At that moment of uncertainty when I was starting, I saw a documentary about the life of Warren Buffett, and the first part of his life, when he was also starting with little money, particularly caught my attention. What were the same techniques he was applying? And I came to the conclusion that other great investors had done exactly the same thing, which is what you will discover in this video. If we look at Warren Buffett's wealth, what interests us is this period when he was 19 years old, and it is stated that he had a net worth of just $10,000, and how by the age of 32, he had accumulated a net worth of over $1.4 million through his own investments. At that moment, I realized that there are two paths you can choose when you start investing in the stock market. The first option, and the most popular, the one everyone usually says, is, "Hey, buy an index fund, an ETF, a bank deposit, or even fixed income, some bonds, and so on." The current dilemma is that the stock market and indices probably have an expectation of only 3% annually for the next 10 years. Many people have this expectation of high returns, which is what has happened in recent years, and the reality will be very different. And this is supported by support, by studies that companies like JP Morgan, Bank of America, Apollo Group, and Invesco have recently published. [sniffle] And they are based on stock market valuations; valuations are the most important thing; they determine the 10-year return, not the short-term. Here we can see this scatter plot where, based on the valuation, which is the bottom axis, the X-axis, we can see that there are times when the stock market is cheap, 14 times earnings, and it yields even negative returns, so there seems to be no relationship. But look at how the picture changes over 10 years; it becomes a perfect relationship. The more expensive the stock market is, the lower the return it yields. Currently, we are between 22 and 23 times adjusted earnings. This scatter plot suggests that in the next 10 years, the annual return will be between 1% and -4%, according to JP Morgan. This is another study conducted by Bank of America, but it points to the same thing regarding the current valuation indicated here. In the best-case scenario, even being very generous, we could reach 5%. If you look at any compound interest calculator and enter your net worth and 5% for the next few years, you will see that your portfolio will not change at all, or very little, if what you are really looking for is to grow it and, as we said before, start multiplying that net worth. This is again another study from Apollo Group. They all indicate the same thing. It's not that an investment bank is publishing something that supports its thesis, but rather they all point to the same theory. This one is from Invesco. We see exactly the same thing, the current valuation. We look at the expected return, +2 or -3. And this has already happened historically in the S&P 500. Between 2000 and 2012, there were 12 years with a 0% return. Obviously, the following years have been very good because the starting point was very good. Investing in indices is a profitable strategy, mind you, I'm not criticizing it, but it's more interesting when we already have a lot of capital. If we want to follow that path, to some extent, indexing or choosing these low-return strategies for the rest of your life is to give up the possibility of having higher returns that will get you to your goals sooner. If we start with a hypothetical person who starts with €50,000, €30,000, €20,000, saves about €6,000 per year, has a 3% return, which is what an index will yield, and is currently between 35 and 55 years old, this is basically the result: over the next 20 years, the capital you end up with, where your investment life probably starts to run out, especially depending on your starting age, this capital doesn't change your life much. It's very good, it grows, and it's like that. But ask yourself if that's what you want for the next 20 years, or if, on the contrary, we can go for another alternative because time is running out, and it's, "Hey, what do you want to achieve in the most important years of your life that are coming after this point where we are sharing this video?" The second option, which is what everyone who starts with little money and has had success and advanced quickly uses, not only Warren Buffett, but all great investors, myself personally, and many other people, is to accelerate that process. This second option consists of selecting your own stocks and investments, taking advantage of the benefits of having little capital to access less known, more inefficient parts of the market where the return will be higher, and mind you, with less risk. Investing in these more profitable stocks, as we said, with less risk. And this, very importantly, will get you to your goal many years sooner, and above all, you will enjoy the process because when you start winning big, with less risk and knowing what you are doing, the stock market becomes something you enjoy, and that leads you to want to improve more, which increases your return and becomes a virtuous cycle, and it is very interesting for many people to start experiencing that feeling. Warren Buffett is often cited, and his recommendation to invest in indices or ETFs, but ask yourself, why does Warren Buffett never buy an index like the S&P 500 or an ETF? Here you can see one of his current portfolios. He has, well, the stocks he can buy now because he has a lot of money, but he has Coca-Cola, Chevron, American Express, private businesses, some bonds, but he doesn't have those investments that he is often cited as recommending to investors. Why doesn't he do them for himself? Because Warren Buffett has said, "Do as I do, not as I say." In fact, in an interview at an annual Berkshire Hathaway conference, he said, "If I had less than a million dollars to invest, I would focus on small companies because there is a greater probability of finding a good opportunity." Okay? In this graph, or in this table, we can see that the S&P 500 in almost 90 years of history has yielded a 10% return. However, small caps, which is what SC means here, have yielded 13.5%. So, just by positioning yourself in that part of the market of less known companies, of which there are many more, you get a higher return. And over 90 years, this is the difference between ending up multiplying your money 500 times or 8,000 times. It's a return of practically 15 times higher, that 3%. A single small-cap stock can change your life. It doesn't mean that all the ones you buy will multiply by 10, 20 times, but if you have one in your portfolio, it can make a drastic change. For me personally, it happened in 2016, and thanks to that, my personal net worth skyrocketed, as did the net worth of the funds and my financial future. What I saw in this company was, first, that it was very little known, it capitalized barely 30 million in the stock market, but it was growing and had no debt, it was trading extremely cheaply, and it had an average trading volume of less than €25,000. In fact, I was buying shares almost every day because I wanted to invest up to 1 million euros, which was a large part of, or my biggest investment at the time. At a price of around €1 per share. This company subsequently grew rapidly to €15 per share. In less than 3 years, I multiplied my capital by 15 times, and it was later delisted at a price of €17 per share from the €1 I started buying at. This is also another example of one of the best guest professors we have at the School of the Art of Investing, who also started like you, with very little capital, and over the last few years has multiplied his capital by 30 times by applying this same method. These are examples of situations that hardly ever happen in very large and well-known companies. Alpha Builtour from Alpha Builtour Capital Management, with whom we recently did a training, bought EMACER, which was a very little-known company, but again growing at rates of 20% annually, with no debt in the health sector, and subsequently the company ended up being bought at $25 per share from a purchase price of barely $ per share. And we are talking about multiplying your capital by nine in less than 3 years. It's not the norm, but within a portfolio where we are sowing our seeds, you will have many of these opportunities. Let's move on to the second point, which is what you're probably wondering, how to find high-potential opportunities to start including in my portfolio. Well, on one occasion, Charlie Munger and Warren Buffett were asked about the best ways to find opportunities, and they replied, "Pay close attention to what the best investors are buying." For that, you can use websites like Dataroma, which updates every quarter what investors with the best returns are buying, or websites like Wisdom. The problem is that these well-known investors already manage a lot of money, and if they had little money like you, they would make completely different investments. There are very interesting services online today at x.com that are completely free. You can subscribe to very interesting newsletters, for example, Yellow Brick Investing. Every day, every week, it compiles what private investors with little money are buying. Here you can see the tickers. And not only that, it includes a photo with a small summary of what it's doing, okay? Today, with the advent of artificial intelligence, you can take a photo of this screenshot, as I show you here, and you can tell ChatGPT something very simple, like, "Explain to me in detail the investment thesis of the photo I am attaching below," and it will give you a complete summary and put you in context, and this didn't exist three or four years ago. You can't imagine the amount of time it saves you and how it shortens the knowledge gap. Before, you needed a lot of knowledge to find these opportunities. Today, it's simply about asking the right questions and knowing where to find the right sources. You can also go to the letters of great investors or investors who have good returns, like this website, bydigest.com/hchfanatabase, and every week or quarter you can download these investor letters, and again, you can upload them to an AI and say, "Hey, explain to me the thesis of all the stocks mentioned here below." For example, Unison Asset Management talks about investments in Korea from Samsung and SK Hynix, which have gone very well. Well, this was published recently on June 2nd, June 1st, you have it here, and they explain all the stocks, and you can have infinite ideas with just these two simple methods. But if you are following the channel, because obviously, every week we share investment methods, how to find these opportunities, where they come from, and for you to get to know the world of the stock market a little better, and it will be helping you enormously. The third point is how to easily select good investments. Selecting good investments is easier than most people think, especially in the era of artificial intelligence, which can do a lot of the work for you. Pay attention to the following investment rules I am going to show you, because they may seem very simple, but they have a lot of logic, and many people forget to apply them when selecting a good investment. The four essential checks you can do are, first, look at a 5 or 10-year chart of the stock, and if it has performed well, there is usually a good story behind it. It's not anecdotal that a company performs well in the stock market for so long. It can do well for a year, 2 years, there might be a bubble, there might be euphoria, but this simple check already tells you a lot. Second, once you've done that, consider if it operates in a sector with a future. It's like saying, today I'm going to invest in newspapers, well, people don't read them anymore. I'm going to invest in television channels. People don't usually watch traditional television anymore; today it's streaming, Netflix, things like that, okay? So, think about that because a business might be in decline. Monitor the valuation. Now we will understand how to know if something is expensive or cheap, which is what Warren Buffett did. He didn't just look at stocks with high potential or a good story behind them; we also can't buy at any valuation, because otherwise, we can have very significant drops. And finally, rely on artificial intelligence if you are starting. Today, you just need to ask the right questions, such as, "Hey, how does this company compare to its competitors? Does it have better margin ratios? Return on invested capital? Does it grow more or less than its competitors? If it grows more, it's better than the competition. How is its valuation compared to similar companies? What is the expected growth in the industry it operates in?" Now we will see all this with examples so you can understand it perfectly. And we will use the case of a well-known company. Instead of going to a small company that you might not know, Visa, everyone knows it and credit cards. The 5, 10, 20-year chart is very good. We can see that it is healthy, it has some corrections, but overall it has a very interesting chart. You can go to ChatGPT, Gemini, Claude, which has been working quite well lately. I notice that Gemini is lately surpassing ChatGPT, and you can tell it, "Hey, what growth is expected for the sector?" Here you can enter the sector you are studying the company in, in this case, credit card payments for the next 5 years. Very importantly, second, how has Visa's market share evolved? That way, we can know if the company is strong or weak in its sector over the last 5 years. And third, also analyze if it has grown more or less than the sector in the last 5 years, because if you say, "The whole sector grows by 3% and the company grows by 1%, something tells you it's not right." And this gives you the following. It tells you, "Hey, well, the credit card market, according to different firms, is growing around 3%. Some say 4% annually, okay, and the number of transactions around seven. Well, but what it tells you is that Visa's share in credit cards has grown. From having a 28% market share, to 35%. We already see that it must have something good. It also provides a chart. In 2021, it was 28%, then 35%, and it says, the global credit market went from 1.8 to 18 trillion. Well, it has grown by 1.7, so Visa is gaining market share against its competitors. And it can also help you with valuation when we say, "Hey, well, we have a good company, with no debt, and so on." You can ask it, "Hey, tell me the valuation at which Visa is trading 12 months forward, because what matters in the stock market is the future. Analyze if its debt ratio is high or low, because to have no risk in our investments, we want low debt ratios, which is what eliminates a large part of the risk in the stock market if we have done the previous two steps. And give me a fair valuation range considering the expected growth." And here you can add the quality of the company, okay, in case you want it to give you information about quality, but to avoid complicating it, it tells you, "Hey, well, Visa is trading at 329 and will earn almost 15 dollars next year, and it tells you it's trading at 22 times earnings." Okay? Then it tells you, "Is Visa's debt high or low?" And it tells you, "It's low." In fact, it tells you, "It's very low for a company of this quality." So, here it's resolved, easily, and it explains why, okay? And then it tells you expected growth. Well, it tells you, hey, according to the sources and so on, it expects between 13%, 10%, 15% by 2027, depending on the source consulted, but it seems that a fairly strong growth is expected from different sources. And finally, the fourth point tells you valuation range. Well, it tells you, hey, for this type of company, and I can tell you from our experience valuing companies, that it's a quite reasonable answer between 23 and 28 times earnings, so it tells you, hey, well, at one year forward, $368 or $400, okay? So it seems, it also tells you, Visa would be slightly undervalued or reasonably valued, it's not a bargain, it says the debt is very low, okay? So here we see, well, it's a good company, it doesn't say it's super cheap, and we can agree with that type of analysis. And before, if you didn't have this tool and you were a beginner investor, you had to invest a lot of time in your knowledge and a lot of work to get to this point, and today it's simply about learning this, okay? So, that's what we will also be learning on the channel if you start following it and pay attention to the next videos. Let's move on to the next point, which is, hey, and once I've found this, when do I buy? When do I sell? How much? Okay, which is another common question. We are very close to showing the bonuses and examples of current stocks that fit what we are seeing so you can understand it much better, okay? So, we will see it shortly. Warren Buffett says that we are in the business of making good purchases, not good sales. What does Warren Buffett mean? That what you can control is the entry point into a stock. If you then sell and the stock performs well, it's common, in fact, it often happens to Warren Buffett, and you shouldn't get frustrated by it. But what we need to control is to be very disciplined when buying, and for that, the valuation, the quality of the business, and the expected growth for that investment you are going to make are important. Four easy tips I can give you that have worked for me when buying stocks are, first, monitor the risk and then focus on profitability. Many people do the opposite. They look at overly risky companies, companies that have no earnings, companies that are, as they say, a shot in the dark, and they don't realize that they have enormous risk if anything minor goes wrong. But if you focus on risk, we will see low-risk business models later, and look for an interesting profitability, your portfolio will do very well, and above all, you will sleep very peacefully and enjoy the stock market, because this is something people don't usually say, but feeling stress, anxiety about what will happen, what a politician will say, about the news that will come out, is not very compatible with continuing to practice this magnificent sport, which is also very profitable, for many years to come. If you are starting to invest, it's better to diversify. Start with 30, 40 positions. Today, with low-cost online brokers, it's very cheap to buy and sell. And then, little by little, you will step on the accelerator and have fewer and fewer positions, and in that way, you are sowing your seeds so that you have great investments. Include good sectors in your portfolio that are stable sectors or companies with predictable, recurring, high-value earnings that are growing, for example, health sector companies, technology, real estate sector, good industrial companies with differentiated products, and have at least six different sectors in your portfolio. That is the minimum academic diversification that has been proven to work. Because imagine, in the recent 2020 crisis, if you had all tourism or hotel stocks, your portfolio would have suffered a lot. However, if you are diversified, yes, one part goes down, but the other will hold steady or go up, okay? So, that is very important. Tips on selling. Sell a stock if you find a better opportunity and you have already exhausted your liquidity, you have nothing to buy with. You should also sell if you lose confidence or the thesis changes. Meaning, "I entered a company for X reason, and that is deteriorating, it's not working. It's better to sell and look for another alternative because there are thousands of stocks." When you have little money to invest, there is a huge universe. Warren Buffett. He has said that he has 50 stocks he can invest in because he is already incredibly rich, but you have a gigantic universe. Analyze if you would buy the stock if you didn't already have it in your portfolio. This is a very interesting check to say that many times we have things in our portfolio out of inertia because they were there, because we want to recover the money we lost, but think if you would buy it if it weren't there. And that is the best check you can do every 3 months, for example. And the first thing is your peace of mind. Investing should be fun. If a position is mentally draining you because you don't understand why it goes up, why it goes down, you think it published good results and the stock goes down, or vice versa, it's better to sell it and try to find another one that doesn't take away your peace of mind. And we are going to see examples next that will illustrate more how to understand this. I want to show you this company that we were looking at in October 2024 when it was trading around €30 with the students of the special edition of the Art of Investing course, which was focused on how to generate high returns by investing with little money. A new edition will be available soon, it's still a few months away, but I recommend you stay tuned if you are interested. And this shows you how to invest in your knowledge. With small pieces of information you obtain, you can propel many of your returns and make that investment in knowledge pay off 10, 20, or 30 times. This is a very simple company, it was a cement company that [clears throat] was trading at €30. What was happening at that moment? The cement business was totally viable and easy to understand how it works. Furthermore, it's a good business because cement is expensive to transport from one place to another. A cement company operating in a city or region has a huge competitive advantage. The price of cement keeps rising because permits for building new plants are not granted due to their environmental impact, and this makes cement businesses, if you look at the last 5 years, practically any company you've seen is rising in the stock market. Furthermore, there was a tailwind due to the enormous investment in infrastructure both in Europe and the United States, where the company operates. In both regions, there will be massive investment in the coming plans. We are talking about trillions of dollars in modernizing roads, bridges, airports, housing construction, all of which requires cement. It also had a good track record both in its chart, as we have seen, and in terms of profit growth, and the valuation was extremely low compared to similar companies. Why? Because it was trading in Greece, and Greece is a smaller market that was a bit ignored. However, there was a catalyst: it was going to take most of its US business public, to trade in the United States, where similar companies traded at much higher valuations, and that would act as a magnet, pulling the stock price up. The company operated and continues to operate because it remains very interesting. I don't want you to see this as past, but rather that it can serve you today because it will still have more growth than similar companies and its valuation compared to similar companies is lower. The United States was doing very well, it was growing. Greece was also recovering from a fairly low base. In Southeastern Europe, it was also recovering, and the Mediterranean region with Turkey and so on, we see that after some difficult years, the business was also rising. We see the profit history here. How the company had gone from earning €50 million in 2024 to being expected to earn €280 million, meaning we are multiplying its profits by almost six times. It was a growth company, and the most interesting thing is that today, by 2029, it will continue to grow at that good double-digit pace and will earn between €5 and €6 per share. This puts its current valuation at around 10 times earnings. Now we will see how to value this. The company will also generate between 3 and 4 billion, which is exactly what it capitalizes in the stock market. It capitalizes 4 billion. It's telling you that in 3 years it will generate in cash, in capital to put to work in dividends, buybacks, or acquire other companies, the same amount it currently capitalizes, and it has a very low debt ratio. Currently, it's 0.4. Other cement companies have ratios of two or three. You can enter this into the AI to explain it to you calmly. If you want to pause the video, analyze it, and understand a new sector and a great company. The question is, hey, and how do cement companies trade today? Well, for example, you have CRH, it trades at 18 times, Holcim at 20, Heidelberg at 13 times, and here you can see Ambu at 20, but we can see that the average is between 15, even above 20 times, and this company, if it reaches those targets, which it has historically reached, would be at 10 times. Okay? So, you can see a past case, but one that also applied to the reality of less known stocks, taking advantage of certain inefficiencies or catalysts on how you can boost your investments. Let's look at bonus number one with another very interesting example. You already know that these are not buy or sell recommendations. You are here to learn, that investing in the stock market has risks, and that our opinions are our own subjective views and may not come true. And in some of the mentioned stocks, I may have positions and buy or sell at any time, obviously. Okay, let's show you a company we looked at recently, just a few weeks ago, with the students of the school to understand how interesting infrastructure companies are, because artificial intelligence doesn't affect them, and most of them currently trade at very high multiples in the stock market. However, some of them, less known, have very interesting assets. And here I have put the company that manages one of Greece's main ports, which has a key position for European trade. Okay? What happens is that these stocks normally cannot be accessed by large funds. Here, as I show you, look that on one of these days, it trades an average of 8,000 shares, but on some days it only exchanges 300 shares at €40 per share. A fund like mine cannot invest here because there is no daily liquidity. The company has performed well in the stock market, it has risen, now it has corrected a bit because people are more focused on AI, on other growth sectors, and have forgotten about these companies. The company manages the port of Piraeus. It is the closest entry to Europe from the Suez Canal and can accommodate large container ships. The ultra-large container carriers, the ULCCs, where, for example, cars from Asia, all kinds of consumer products normally manufactured in Asia arrive, which take the Suez Canal route and enter Europe, and from here they are distributed by smaller ships or by train. Furthermore, it is building train lines that will connect directly to the port to supply all of Europe, so the demand and profits of the port have been rising enormously in recent years. And here, a supply and demand situation is created, where the demand for these port services will increase, but there is no more supply; there is the port that exists, which is one, and it already has a key position within the Mediterranean. Building a port from scratch is not easy, nor is managing those routes, nor connecting them, because it's not just about building the port; you have to build a whole series of additional services. So, this creates a local monopoly with high visibility. It's a concession for more than 30 years, and they are usually renewed every 30 years. It has zero risk from artificial intelligence or technology, and that's why many people are looking for these investments. It is a key infrastructure for Europe due to its location. It has a history of enormous profit growth and no debt. Normally, infrastructure companies have to invest a lot, and because building a highway or an airport is not cheap, they have a lot of debt, but this company has no debt, it has net cash. And its valuation, if we compare it to similar port companies, as we will see next, is very low today. This does not mean that I am making a recommendation on whether it will go well or badly. It simply means that you understand how a valuation process is done. And it also has a history of good shareholder treatment with a high dividend distribution. Here we can see that the dividend has gone from being 60 cents per share to almost €2 per share last year, and it is only distributing half of its profits. If it distributed all its profits, it would be paying a dividend of almost €4 per share, which would yield more than a real estate investment. Today, the real estate sector in Spain gives you 3% or 4% if you buy an apartment to rent, and it doesn't have the fundamentals of this company nor the expected growth without debt. Well, a quite interesting situation. Here you can see how in recent years this company has gone from earning barely €6.7 million in 2016, because it was first managed by the government, and when Greece almost went bankrupt, it had to sell it, and a private operator bought it, and today it earns €86 million. We can see that profits have grown from 34 million to 130 million, a fourfold increase. It's growth at the level of a large technology company, in terms of profits. Curiously, in recent years. Here we can see the valuations when similar port companies have been bought or sold. You can see that for this valuation ratio used, which is EV EBITDA, the average is usually around 12, 13, 11 times EV EBITDA for this valuation. If you go to the AI, as I told you before, and ask it, "Hey, tell me the valuation by EV EBITDA, which is what is used in this sector, for transactions of ports in emerging countries, because many people consider Greece a risky country," so we put it as if it were an emerging country, which it is not, but anyway. So, it shows transactions at 8, 13, 12. We can establish that the average is 10, 11 times, nine in that range, okay? You even have here other publicly traded companies, main port operators, and their 12-month forward valuation. Well, we see that they are at 14, 15 times, 10. It's rare to find them below 11 times here, okay? So, we can already see a bit about the situation. So, this company, the Port of Piraeus company, is only at seven times. It's a 30% and 40% discount compared to private transactions or similar listed companies. And furthermore, its valuation is almost the same as in recent years, when it has performed very well in the stock market, multiplying profits, which is why the company has risen in the last 10 years, but people are not assigning it a higher valuation. Again, these are examples of the investment philosophy with little money so that you can find things that, I don't want to venture and say, "No, there's no risk for someone to buy this." Okay, but you can understand that an infrastructure company with growing profits, no debt, distributing dividends, obviously has a much lower risk profile than a technology company, which can be very volatile, without profits, with debt, and not generating a turning point, okay? So, this is what you can achieve with little capital, but let's look at the advanced bonus, which changes everything and will take you less than 5 minutes to apply and can change your way of seeing the stock market. And we will also see it with examples. One of the great secrets I realized and that these great investors applied to drastically increase your return as a private investor is to invest in changing situations. What do I mean by this? Stability is the enemy of high returns in the stock market. When everything is very stable, everyone knows that a stock is good, that a sector is good, that a company is very well-known, that it will have X profits. It's very easy to price it, and for the market to be efficient, so your return would be very low. Changing situations are situations where the market takes time to price in that new reality, and this is where your agility with little money comes into play, and you can take advantage of these opportunities before large funds, large investors, who will take months or weeks. If you can enter at the moment, because you can buy and sell stocks instantly. If you understand this of looking for situations where there will be some kind of change, where the cards will be reshuffled, and everything will be a bit agitated, that doesn't mean buying a stock whose chart is declining and might go bankrupt, no. Let's look at some examples. These types of situations can be spinoffs, mergers, and acquisitions. A company bought another, another will be acquired. A spinoff is when a company divides into two. Then, two parts remain listed, and it takes time for the market to price them or know them. Cyclical sectors where sometimes the cycle is starting to change, and it's evident, but the market takes time and only realizes it when the cycle is very advanced, if not in the early stages. Companies that have just emerged from bankruptcy, which people think are bad because they went bankrupt, but often the problem was debt; bankruptcy removes the debt, and suddenly the company starts to rise. Recently, on the channel, we looked at Talen Energy, which is very interesting, it trades at just about 15 times earnings, AI is benefiting it, the company produces nuclear energy, and it had a debt problem, but bankruptcy removed it, and now it's on the rise. Announcements of share buybacks or dividend increases. Also, when a company suddenly makes a share buyback announcement, it's because it thinks the company's future will be better or because it's undervalued. So, you should also pay attention, and we will teach you all this on the channel, and especially if you then see the training sessions on how to identify these types of situations in a simple way. We will make it easy for you so you don't have to invest just the right amount of time and effort. And there are also very interesting situations where there is a mix of a company that is publicly traded having a mix of a good business and a bad business. And sometimes the bad business is being divested or sold, and only the good one will remain. And the market takes time to price this, and this can also be very interesting. A special situation is that of SiniX. We looked at this with students at the beginning of this year at the school, around February, and it was trading in Frankfurt, but it had very low liquidity. It's a large RAM memory company.

Korea, but it was not possible to invest through a private investor in Korea. However, it had a small market in Frankfurt where barely 1000 shares traded daily, something very small, okay? that an investment fund like mine could hardly take advantage of. This company had a catalyst, moreover, that changing situation where it was going to start trading on Nasdaq, it will probably do so now in August, and that would force the market to value it like similar companies in the United States. It was going to create additional demand for shares. You already know that offers are the shares that a company has on the stock market, but if there is the same offer of shares and there is going to be additional demand due to a catalyst of this type, it will exert upward pressure. It was also a cyclical sector, but it was at a point where it was improving, and furthermore, it is a monopoly of three companies in the world where the growth of artificial intelligence benefits it enormously, and the valuation is extremely low, barely five times earnings without debt, when the stock market on average has been trading at 20 times earnings in recent years. To give us an idea, what happened after we saw this case study? that from €500 it went to €10,000 in just 4 months. This is what I want to illustrate, and what I have illustrated to the students with these changing situations that we see every month, case studies of sectors, situations, companies, so that you have tools that allow you to identify good investment opportunities. If you want to access this, you have the link in the description of the special edition we will do on how to generate all returns with little capital. And furthermore, just for being subscribed to this newsletter, every month, starting in August, you will have high-value content like what you are seeing in this video, if you like it, for free, and it will not be published on the channel. You have to be subscribed, so sign up at the link you have below in the description. This is another very interesting example. The company Astronova recently was a company that had two businesses, a low-quality industrial business that it was selling or closing the unprofitable part, and another very high-quality aeronautical components business. It was trading at only $9 and suddenly it went to $29. Why? Because another company appeared and said, "I am buying the entire company now that it has been cleaned up, the bad business has been removed, for $29." This is another example of a changing situation and a mix of good and bad business, okay? So, the market took time to price it, as you can see there, because this was more than known, even when the company was at $9 to $10, even at $15 in the last weeks, and in a situation of a less known company, with low liquidity, and a buyer appeared who bought the entire company. I am going to show you another case study that we did with the students of the special edition that we did in 2024. This company Lions Gate, one looks at it and it is a perfect situation of what we were saying about changing situations. One looks at the chart and says, "Well, this is going nowhere." Lions Gate is a composition of two businesses. On the one hand, the film production studio, and on the other, the television channels that you have heard of, called Starz, okay? which are cable television. And Lions Gate produces very famous films, for example, all those of The Hunger Games which are based on the books, the John Wick ones, which are action films of Keanu Reeves. Well, it has several quite interesting franchises. The point is that this is trading at 7, okay? So, by buying a share of Lions Gate, you received a free share of Starz. The curious thing is that the market was assigning a value of 0 to this business, okay? So, imagine how inefficient the market can be. The implied valuation of Starz was one times earnings. Any viable company, and this is a viable business because it was stable, it wasn't growing, it shouldn't be at one times earnings. It should be at a minimum of five, eight, or 10 times higher valuation. One had to buy in a somewhat complicated situation because one had to buy Lions Gate and sell a share of another stock called Lions Gate Studios, which was the same but already traded on the stock market. There was very low liquidity to carry out this operation because there were not many, let's say, shares available for sale. Starz appreciated by 300%, this is equivalent to multiplying your money by four times in less than 4 months, from February to May when that catalyst occurred. In fact, in practically one day, a return of 100% was achieved thanks to this type of situation. Why? Because of this press release, and this was more than known, this had been announced for 6 months prior, but what this company says is that Lions Gate Entertainment will be separated into the Hollywood studios business and the Starz television channels business, okay? And that they will start trading with two different tickers. So, you bought a share of Lions Gate and they gave you the one for Lions Gate Studios, which was already trading. So, you bought Lions Gate, I'll give you the figures, more or less at $X, and Lions Gate Studios was already trading at $Y. So, you could buy this stock, go short on the other one, and receive Starz for free. It's like a kind of chimera, but there were days or weeks when they practically gave it to you for free. There was a moment when this went up a bit, it went up to $7.30, I remember. So, for only 30 cents, they gave you a free share of Starz, which meant you had to buy a lot of these, sell these, and you created Starz practically for free at an implied valuation of one times earnings. But what happened? that these changing rules, this was going to start trading on the stock market and would force the market to price it. What happened when Starz started trading? As you can see here in May 2025, we were looking at this with the students, I think, in March or April, that the company was going to trade at $10, but it could have been bought previously, as I say, for approximately just $4, something like that, because there were some splits and so on. These $10 have even gone to $28 now, but it doesn't matter, in a few weeks this could have been sold at $15, okay? With minimal risk. When you are buying companies at one times earnings, there is basically zero risk, and you are interested in buying as much as you can. The good news is that these kinds of situations are not that abundant, but they usually appear at least three, four, five, or six times a year. And if you take advantage of them every year, you can drastically boost your future returns. Lions Gate Studios, the Hollywood studio part also did very well, from $6 where it traded, it went to $15 because many people are betting today that it is the only Hollywood studio left trading on the stock market, that the major production companies have not bought it, and that someone will probably buy it in the future. That's why I was saying that these kinds of situations happen every year in the stock market. For this reason, investing in your knowledge to take advantage of them is the best investment you can make, as Warren Buffett would say. Therefore, I invite you to follow the channel, give it a like, you can share this video with someone else because it will help them see investments in a different way, increase their returns. And if you are subscribed, YouTube will recommend you every time we publish a video with new techniques to improve your returns with little money, because that is what the channel is focused on for private investors who want to boost their returns. So, I hope you liked this video. Tell me in the comments what you think, what you would like to see, if you have seen the video, in which areas you would like to delve deeper, which is very important and can help you, and what types of situations or stocks you would like to see. Without further ado, greetings and good investing. Goodbye.