I Let My Chat Invest $10,000 to prove it's all luck

Summary

In a humorous social experiment, a YouTuber challenges their chat audience to invest $10,000 in stocks, competing against themselves, a professional stock trader, and a newborn baby. Over a year, the chat picks stocks through polls, leading to unexpected results. Despite the YouTuber's lead, the 'stock guy' narrowly beats the S&P 500, while the chat audience and the baby lag behind, illustrating the unpredictable nature of stock market investments.

Takeaways

• 😀 The video is a humorous take on stock market investing, where the YouTuber gives $10,000 to their chat audience to invest in stocks.
• 🐟 The experiment is inspired by a video where a goldfish 'outperforms' financial advisors in the stock market.
• 💻 The chat audience can suggest stock names, and a program randomly selects two for a vote to decide which stock to buy with $500.
• 🔁 This process is repeated 20 times, spending the entire $10,000, and the results are observed after a year.
• 👶 The chat audience competes against the YouTuber, a professional stock trader, and the trader's newborn baby, each investing in 20 stocks.
• 📈 The video includes a discussion of various stocks, including meme stocks like AMC and performing stocks like Tesla and Coinbase.
• 🤑 The outcome shows that the professional stock trader's portfolio outperforms all others, including the YouTuber's and the chat's picks.
• 📊 The S&P 500 index, representing the overall market, is used as a benchmark, and most participants, including the YouTuber, underperform it.
• 🏆 The professional stock trader, referred to as 'stock guy,' is the only one to beat the S&P 500, showing a 4.27% return.
• 😲 The chat audience's picks perform better than the YouTuber's but still lag behind the market index and the professional trader.

Q & A

What was the initial investment amount given to the YouTube chat for stock trading?

The initial investment amount given to the YouTube chat for stock trading was $10,000.

How was the stock selection process conducted in the YouTube chat?

The stock selection process involved users in the chat spamming the name of a stock, a program would then autopopulate two of them, and the chat would vote on which one to buy for $500.

What was the role of the 'stock guy' in the experiment?

The 'stock guy' was a professional stock trader participating in the experiment as a competitor against the YouTube chat, the host, and a newborn baby, all buying 20 stocks for $500 each.

Which stock did the YouTube chat choose first and why was it significant?

The first stock chosen by the YouTube chat was Roblox. It was significant because it had shown a considerable increase in value over the past year and was a popular choice among the chat participants.

What was the outcome of the experiment after one year?

After one year, the experiment showed that the 'stock guy' had the best performance, beating the S&P 500 by a small margin. The YouTube chat's portfolio came in third place, only beating the newborn baby's portfolio.

What was the final message conveyed by the host regarding investing in the stock market?

The final message conveyed by the host was that it's often wiser to invest in an index fund rather than trying to beat the stock market by picking individual stocks, as evidenced by the 'stock guy' outperforming the others.

How did the host's own stock picks perform compared to the YouTube chat's picks?

The host's own stock picks slightly outperformed the YouTube chat's picks, with a difference of $58, but both underperformed compared to simply investing in the S&P 500.

What was the performance of the newborn baby's portfolio in the experiment?

The newborn baby's portfolio, despite not being actively managed, still made over $1,000, indicating that even random selections could perform relatively well in a strong market.

What was the significance of the Silicon Valley Bank (SVB) mention in the script?

The mention of Silicon Valley Bank (SVB) was significant as it was tied to Roblox's financial situation, indicating that Roblox had a large amount of money tied up in the bank, which could impact their stock value.

Which stock did the YouTube chat choose that was associated with 'war machines'?

The stock chosen by the YouTube chat that was associated with 'war machines' was General Dynamics, which is a global Aerospace and defense company.

Outlines

00:00

🤑 Stock Market Experiment with YouTube Chat

The video script describes an experiment where the host gives $10,000 to their YouTube chat audience to invest in stocks. The chat members can suggest stock names, and a program randomly selects two for voting. The chat decides which stock to buy with $500, repeating this 20 times. The chat's investment choices are pitted against the host, a professional stock trader, and the trader's newborn baby, who also make their own stock picks. The goal is to see who performs best after a year. The host humorously expresses doubt about the chat's investment acumen, comparing it to a goldfish's ability to pick stocks.

05:01

📈 Stock Selection Process and Initial Investments

The script details the process of stock selection by the YouTube chat, starting with Roblox and AMC. The host provides a brief analysis of each stock's performance, mentioning AMC's peak during the COVID-19 pandemic and Roblox's significant growth. The chat continues to vote on stocks like Tesla, which has shown an uptick in performance, and Caterpillar, chosen for unclear reasons. The host also mentions a professional stock trader's involvement in the experiment, emphasizing the need for secrecy around their picks to preserve the surprise of the outcome.

10:02

🚜 Diverse Stock Picks and Voting Drama

The chat's stock picks become more varied, including Home Depot, which wins in a close vote against Amazon. The script also covers the selection of General Dynamics, a defense company, over FaZe Clan, a gaming organization. The chat's investment strategy seems unconventional, with picks like a semiconductor manufacturer (ASML) and a vape company (RLX). The host interjects with commentary on the chat's logic and the performance of the chosen stocks, adding humor and skepticism to the process.

15:02

🏥 Controversial Stock Choices and Market Comparisons

The script continues with the chat selecting stocks like British American Tobacco and Taiwan Semiconductor. The host compares their own and the chat's performance against the S&P 500, noting that both have done well but still underperformed the market index. The host also introduces a 'baby' competitor, suggesting that even a baby could outperform them. The script ends with a cliffhanger, indicating that the final results of the stock market experiment will be revealed in the video.

20:04

👶 The Stock Market Showdown: Results and Reflections

The final paragraph reveals the outcome of the stock market experiment. The host, despite beating the chat by a small margin, underperformed compared to the S&P 500. The 'stock guy' emerges as the winner, narrowly edging out the market index. The chat's performance places them third, only outperforming the 'baby' competitor. The host reflects on the wisdom of index fund investing over individual stock picking, concluding that the experiment shows the challenges of beating the market, even with expert knowledge.

Keywords

💡Stock Market

The stock market is a centralized venue for the trading of company stock and derivatives. In the video, the stock market serves as the platform where the experiment of investing takes place. The video creator and the YouTube chat participants select stocks to invest in, aiming to outperform the market or other participants over a year.

💡Invest

To invest means to allocate money in the expectation of some benefit in the future, typically for income or capital gain. In the context of the video, investing involves choosing stocks and putting money into them with the hope that their value will increase over time.

💡Meme Stock

A meme stock is a stock that experiences a rapid increase in price, driven by social media hype and retail investor enthusiasm, rather than by the company's financial performance. In the video, AMC is mentioned as a meme stock that skyrocketed during the COVID-19 pandemic due to its association with a community-driven investment trend.

💡YT Chat

YT Chat refers to the live chat feature on YouTube, where viewers can interact in real-time during a live stream. In the video, YT Chat is used as a source of crowd wisdom to decide which stocks to invest in, with participants suggesting and voting on stock names.

💡Portfolio

A portfolio in the context of investing refers to a collection of financial assets such as stocks, bonds, and cash equivalents held by an investor. In the video, the video creator and the chat participants each have a portfolio of stocks that they have selected and are tracking over the course of the year.

💡S&P 500

The S&P 500, or Standard & Poor's 500, is a stock market index that tracks the performance of 500 large companies listed on stock exchanges in the United States. It is used as a benchmark to compare the performance of various portfolios. In the video, the S&P 500 is mentioned as a comparison point to evaluate the success of the different investment strategies.

💡Dividend

A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. In the video, the concept of dividend stability is mentioned as a factor that investors might consider when choosing stocks, as it can provide a steady income stream.

💡Voting

Voting in the context of the video refers to the process where chat participants select which stock to invest in by casting their votes. This democratic approach allows the collective decision-making of the chat to influence the investment choices.

💡Index Fund

An index fund is a type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market index, such as the S&P 500. In the video, the concept of investing in an index fund is presented as a 'boring' but potentially safer and more effective investment strategy compared to picking individual stocks.

💡Return on Investment (ROI)

Return on Investment (ROI) refers to the gain or loss made on an investment relative to the amount invested. In the video, ROI is a key metric used to evaluate the success of the different investment strategies over the course of the year, with the final values of the portfolios indicating the ROI.

💡Diversification

Diversification is a risk management strategy that mixes a variety of investments within a portfolio to reduce risk. In the video, the chat participants' investment choices reflect a lack of diversification, as they tend to focus on a few types of companies, which could increase the overall risk of the portfolio.

Highlights

A YouTuber gave $10,000 to their chat audience to invest in stocks, aiming to see if they could outperform a goldfish and a professional stock trader.

The chat audience randomly selected stocks to invest in, with a program auto-populating two choices and the chat voting on which to buy.

The experiment involved buying 20 stocks for $500 each, with the results compared after one year to the S&P 500 and other competitors.

The YouTuber humorously compared the chat's investment skills to a goldfish and a professional stock trader's newborn baby.

The chat's first stock choice was Roblox, which had a significant increase in value over the past year.

The professional stock trader remained anonymous throughout the experiment to keep the results unbiased.

The chat's investment decisions were influenced by factors like brand familiarity and even humor, rather than strict financial analysis.

The YouTuber provided real-time commentary and reactions to the chat's stock choices, adding an entertaining element to the experiment.

The experiment included a variety of stocks, from well-known companies like Tesla and AMD to more niche picks like a semiconductor company.

At the end of the year, the chat's portfolio was compared to the YouTuber's, the professional stock trader's, and the S&P 500 index.

The professional stock trader, humorously referred to as 'the stock guy', outperformed all other competitors, including the S&P 500.

The chat's portfolio ended up in third place, only beating the YouTuber's own picks.

The YouTuber's own investment strategy underperformed compared to the S&P 500, illustrating the wisdom of index fund investing.

The experiment concluded with a humorous acknowledgment that the chat's investment skills were only slightly better than a baby's.

The final results showed the importance of diversification and the risks of trying to beat the market with individual stock picks.

The YouTuber emphasized the entertainment value of the experiment, while also providing a lesson in the unpredictability of the stock market.

Transcripts

one of my favorite videos on YouTube is

when Michael Reeves gives his goldfish

money to invest in the stock market and

miraculously that fish does better than

most financial advisers so I wanted to

do the same thing but who do I know

that's dumber than a goldfish my YouTube

chat so I gave him $10,000 to invest and

see over the course of a year how much

money they would make or wouldn't make

this is a big [ __ ] mistake the way it

works is simple anybody in my chat can

spam the name of a stock and then a

program will autop populate two of them

chat will look into the stocks and vote

on which one they want to buy for $500

we repeat the process 20 times and uh-oh

you've spent $10,000 we wait one full

year and then we see how much it's worth

but I needed to give the chat

competition to make sure they would do a

good job and so their competition

today is me not just me it's also the

stock guy a professional stock Trader

and his newborn baby we're all going to

buy 20 stocks for $500 each and see who

does the best at the very end subscribe

cuz this costs a lot of money and I

might lose it

all

that's it that's that's the first two

options you brought to me you brought me

mem stock AMC and then you brought me

Roblox AMC is if you guys are unaware a

mem stock the stock price skyrocketed

specifically during covid-19 where movie

theaters weren being used it was in fact

their Peak all time when they're

business was at their all-time low since

the memes stock uh shot up they have

never ever recouped that original value

now let's take a look at ROBLOX in the

past year they're up 133% year to date

they're up almost

50% uh so this begs the question chat

you guys get to vote now which one are

we

buying all right that is our first stock

and check this out when I end the poll

it's already in here so you can now see

our total $500 once we reach $10,000

this is over our first stock is Roblox

now I do have our professional stock

Trader on the side and it's important

that for the entirety of this experiment

we don't know what the stock Traders

stocks would be so that way the end

result is a surprise but they just

wanted to let you guys know that

apparently Roblox has a lot of money

tied up in a bank called

svb never heard of it Silicon Valley

Bank yeah apparently they had 150

million but they apparently they'll for

sure get it back apparently they they

they'll for sure get it back it's

already priced in baby you guys aren't

even worried about it that's what I

respect about you all right let's see it

these are our next stocks we

have

Tesla or coinbase let's do a little

research on these are we are we taking

this serious aren't these bad choices

I'm not a stock guy I'm not a stop I'm

not I'm a hehe haha guy and occasionally

talk about some drama that's going on in

the world guy okay you want to ask me

about a YouTube thumbnail and I'm G to

have a b tier assessment of that [ __ ] in

no time this is this is this can't maybe

it's good I don't know let's let's take

a look so we have Tesla now let's just

take a look at the year to date from

January to now Tesla's actually up

61% they're actually wow wow over the

past

year

okay all right down 31% but we're on the

rise they're on the rise right now 2023

is the year baby what about coinbase

year to dat coinbase is up 76% wait

that's actually really good let's check

the past

year okay similar amount down okay

they're down 81% in the past okay they

started actually in April 20121 so okay

all right well the winner of the poll is

Tesla and our next stocks that are meant

to shatter even the greatest investor

[Music]

are what the [ __ ] is

Caterpillar caterpillar cat did you just

do it because it has money sign cat is

it just because it it was it is that it

I have to believe are these the machines

that you see the big yellow machines

that say cat on them it does say

scat which one one is it going to be

chat vote on your phones wow wait why is

it so one-sided you know I I know that

Disney hasn't had the best year but

Disney is a goddamn institution can you

guys tell me your logic for voting for

cats excavators are

cool Coots I like

cats cat go

meow dividend stability

Boo get this guy out of

here it's because cat go meow all right

well the winner is cat and it's not even

close Home Depot or Amazon

whoa this is a battle dead ass one or

two one or two this is a this is our

closest vote of the day as you can see I

just went shopping at Home Depot you

should do the same this would this board

This Magnificent piece of popart is now

mine oh yeah that was [ __ ] wasn't

that that honestly the stock might have

crashed because Ben Shapiro posted that

picture of him leaving the Home Depot

with like two pieces of

wood this might be the reason why their

stock started tanking I think after this

everybody went to Lowe's oo look how

close this vote is and bang okay

congratulations uh to the winner uh Home

Depot all right let's do our next one

what's it going to be fake

versus General

Dynamics who's General

Dynamics General Dynamics Corp is a

global Aerospace and defense company

which engages in design engineering

manufacturing to deliver ster of theart

solutions wait is this just a war is

this a war is this private is this

privatized war is this a military

contract company is this like lockie

Martin what is a striker wield combat

vehicle years in service the striker

undergone very ious survivability

upgrades and received kit applications

designed to improve the vehicle's

ability to withstand the

Tas in April 1979 at the General

Dynamics ducks in gron Connecticut in

presence of government officials was

launched a submarine that became a

milestone in the Navy

[Music]

history

okay so these guys make the F-16 in

nuclear submarines or you could get

these

[Music]

guys face the [ __ ]

up man millions and millions of

subscribers on YouTube Call of Duty Call

of Duty athlet

we just always pay our respects y

beace yeah that was the phase guys

walking into GameStop hoping they'd get

recognized and then quickly getting H

megal by the cashier but don't let that

fool you because FaZe stock is thriving

and by thriving I mean Buy Low sell High

baby check it out check it out they are

40 cents right now all right since their

initial launch uh they're down 77% which

oh oh 97% since they launched right they

peaked at about1 19 $20 but now they're

now they're 40 cents of pop so you could

get a lot of stock if you got FaZe for

500 bucks what do you think chat which

one do you get vote right now okay it

seems like you guys really like the war

machine can't can't say I think it's a

bad idea it just feels a bit feels like

we rushed to this decision yeah they

make an F16 here a nuclear war machine

there but FaZe makes

art okay does GD have a hand signal can

GD 360 no scope off of highrise in a

Search and Destroy 1 V one with no

regards to the bomb being

planted all right GD wins all right

right here are our next two stocks in

the left corner we

have

rt is this a NE War company and then in

the right corner we have cumins did you

pick this because it says come all right

chat what are we doing are we are we is

it war or is it come who wins this is a

tough one you guys aren't the most

ethical investors you kind of like

instantly wanted to dump your money into

war machines yeah but we make

money there's no recession in war my God

you guys are

Cutthroat asmal or I'm watching the rich

neighbors

kid okay we we need to hold up we need

to have a

talk I'm not biased but I am I am going

to read out what each of these are I'm

going to read out what what each of

these are so let's start this is asml

which is a uh a chip manufacturer it's a

very important uh job right now it's

they manufacture chips let's check the

other people what was it it was sorry

what was the exact svb yeah let's just

look that up here svb what comes up um

svb what Fallout what it means for

regional Banks the Silicon Valley Bank

collapse explained wow collapse collapse

will Chinese tech company Suffer Well

you need to know okay not doing great

all right votes are in the winner is

asmal a Semiconductor Company now get

your votes going for the next option

boys

um what is

RLX this Chinese stock could

moon what does that

mean what the [ __ ] is it I'm like trying

to Google this [ __ ] and I can't find

anything what what is what do they do

they're a leading brand of EV vapor

wait is this a vape

company holy [ __ ] those are some big

[ __ ] all right the question is uh

which one are you voting for is it

Chinese Vape company one or Japanese car

company 2 all right that is pretty

freaking clear it's Toyota

next okay wow these could not be more

different companies we're going with

British American Tobacco Company or

Taiwan semiconductor

manufacturing AKA TSM all right chips or

cancer sticks that's your vote here chat

which one's it going to be bear in mind

we already have a

semiconductor if you wanted to oh

diversify all in on semiconductors this

year are we

chat next we have have Rick or bki I

don't know what either of these are so

let's look it up

RCI

Hospitality Rick's Cabaret breaks down

the business of strip

clubs wait I thought this was like a

hospital what stock 2 is Black Knight

ink which I'm assuming does metal work

for every loan lenders servicers and

borrowers want the same result a timely

smooth and compliant Journey yeah I'll

just start the poll one for Rick two for

Black Knights chat and it seems like we

have a bit of a landslide so Rick hog

actually that's not the name I should

say Rick is going to win this one strip

clubs war and

semiconductors all you guys are doing is

literally coming killing and then

creating semiconductors that's it and

then cat finally I was waiting when this

would show up I knew it would show up

here it is this one's going to be

interesting we have a very traditional

stock medical properties trust not doing

the greatest this year down 56% in the

past year year to date they're down 25%

and the other option is

gme hi guys welcome back to morance

rants plenty of good information a

little bit of motivation a whole lot of

Truth No Financial advice I think

GameStop's a problem you know a big Bank

goes down and no one's talking about it

I know we're talking about it yeah I get

that um YouTube Reddit Twitter we're all

talk everyone's talking about about it

but I went to the club last night and

there was hundreds of people there

popping bottles dancing the night away

you know doing all and I'm just saying

myself

like they have no

[Laughter]

idea it's like the meme of the at the

party and it's like they don't know that

svb is collapsing seems like it's

anybody's game Gamestop loses the lead

seems like it's almost a sure thing

unless GameStop comes back they are wait

GameStop tied 50/50 600 will do

it bang GameStop wins by four votes

holy

[ __ ] that was crazy the drama Mistake by

the way terrible [ __ ] mistake crazy

the other option didn't even seem bad it

seemed kind of good but you know you

make your you make you you make your bed

and you lay in it is what they say all

right let's take a look at our final two

stocks we're going to vote on it is we

work or chewy wait what the hell is

chewy chewy is oh wait that's the

delivery pet supply store so we have

chewy bit of a tough month what about

wework

not a great

day not a great five

days not a great

month not a great three

months not a great

year oh all right chat what is it going

to

be yeah this ain't close this ain't this

ain't [ __ ] close all right here's our

20 companies that you guys have chosen

you have Tesla car company PepsiCo the

beverage company uh and also a snack

company Roblox AMD caterpillar Home

Depot yeah you have GD which makes uh

the F16 uh you have American Airlines

you have Ron

semiconductors

WWE Toyota motor Costco TSM which is

another semiconductor not the Esports

company Yum brands which is KFC Rick

which is a uh uh series of uh strip

clubs gme GameStop microns which creates

uh like SD cards dog which is shorting

the stock market and chewy which is a

dog delivery company there it is bang

how do you guys feel about your your

your odds I feel like this isn't going

to be a fun experiment to see who's

going to do better I think you guys are

just going to lose me a lot of money

which maybe I should have seen coming do

you think I'm going to do better than

you I'm not exactly the stock expert

although I would like to imagine that

I'm smarter than my YouTube chat my

Investment Portfolio is down um a lot in

the past year not doing great around

these

parts welcome back to the stream

everybody how's it going how's everybody

doing today how we doing I hope I didn't

leave you waiting too long I understand

it took a bit of time but I finally

crunched the numbers now the first thing

we need to look at is the facts and the

facts are that although we are comparing

how we did against each other we have to

also compare how we did against the

market as a whole and over the past 12

months serendipitously it has been a

fantastic year if you bought stocks the

S&P 500 which is an aggregate of like

the total stock market and how it is

performing is up almost 32% so

technically anything that underperforms

the S&P 500 is probably a failure first

up we have a competitor and I just I

decided to take just a little bite-size

to look at the first initial peaks in

this date range in this competitor from

March 23rd to July 11th went from

$10,000 to

11,34 which is a gain of over 10% but is

still $100 off from the S&P now I want

you to take a guess who this is they

also had the first initial Spike they

were in first place towards the start of

the competition which of the four do you

think this

is I don't know how a lot of you get

guess correctly you're right it was the

baby the baby July 11th was at

$1,314 this is the entire chart between

myself and you guys

and you can see it ramps up a lot at the

end there and I want to tell you between

me and you where we are

today is a difference of

$58 $58 Separates Me and You guys who do

you think

won the

answer get absolutely [ __ ] trout

[ __ ] let's go baby

take a look today we have

$2,451 for chat

[Music]

$12,597.28 ly different at times but at

the end of the [ __ ] day baby I beat

you now you might be wondering very

fairly what about our other competitors

so let's go over all the portfolios

right now lwigs picks vers chat's picks

over the year uh and you can see the

price today I've beat you guys by

$58 and although although you might be

thinking to yourself damn you know even

though you won lwig and that's your

[ __ ] piece of [ __ ] you probably

rigged this we both did really well this

is crazy it's it's in fact it's insane

how well we both did you might start to

think that maybe we know what the [ __ ]

we're doing the answer no the [ __ ] we

don't because although I did beat you

guys if I were to have just put

$10,000 into the S&P

500 I would currently be sitting at

$3,281 but I am not sitting at

$3,281 I am $700 off that because I

decided to do my own picks which is why

you'll often get the wisdom that people

say hey rather than investing into

stocks and doing it yourself if you just

buy an index fund the boring safe

investment route basically you will

probably win over a longer period of

time than if you are trying to beat the

stock market yourself and that is the

case for both myself and for you guys

and if you're wondering how the baby did

things didn't go so great at the worst

the baby was $2,000 below the S&P 500

now having said that the market did so

well the baby still made over $1,000 I

mean that's pretty good and the final

the final man who I have not showed this

entire time and I begrudgingly have to

show you now is a man who describes

himself as the stock guy which is like a

dotom era Boomer name for yourself like

imagine calling yourself like the stream

guy

and you would think you would think you

know a guy with a name like the stock

guy would either do really well or maybe

do embarrassingly bad cuz he's talking

out of his ass the entire year but

unfortunately I am not here to [ __ ] on

the stock guy cuz man did he [ __ ]

crush and he is the only person of the

four competitors to have beaten the S&P

500 sure not by a

lot but impressively got a 30

4.27% return ending at just over

$13,400 beating the S&P 500 by just a

couple hundred bucks not even like 140

bucks so shout out to stock guy for this

insane last second comeback right here

narrowly edging out the S&P 500 uh and

that that ladies and gentlemen is how

y'all did in the stock market against

myself stock guy and an actual baby so

so first place stock guys second place

me third place you guys and you only

beat a baby Drakes and chat way to beat

a baby that's

[Music]

huge