📋 Video Summary

🎯 Overview

This video by Erdős Ármin discusses how he rebuilt his investment portfolio after selling almost everything to buy a house. He shares his investment strategy, focusing on building a foundation of financial security and long-term growth through low-cost ETFs, even after significant life changes. The video provides a practical guide for those starting or restarting their investment journey.

📌 Main Topic

Rebuilding an investment portfolio from scratch, emphasizing financial security, long-term growth, and practical strategies for everyday investors, especially after a major financial shift like buying a house.

🔑 Key Points

• 1. Selling Investments for a House [0:13]

- The speaker sold almost all investments to purchase a house in Belgium.

- This led to a significant reduction in his portfolio, but it did not mean the end of his investment journey.

• 2. Importance of a Safety Net [2:57]

- He kept €10,000 as an emergency fund, earning a small return in a high-yield savings account.

- The emergency fund is crucial for making sound decisions and avoiding the need to sell investments during market downturns.

• 3. Adapting to Increased Expenses [4:55]

- The monthly expenses increased due to the mortgage.

- He focused on increasing income and maintaining a 50-30-20 budget split (necessities, lifestyle, investments/future).

• 4. Selling Risky Investments [6:42]

- He sold most of his higher-risk investments, including P2P lending.

- He still invests in Bitcoin through a Dollar-Cost Averaging (DCA) strategy to maintain exposure.

• 5. Focus on Low-Cost ETFs [8:29]

- The primary focus is now on low-cost, globally diversified ETFs.

- He and his wife have started using ETFs for their investments, creating a unified financial strategy.

• 6. Long-Term Perspective [10:15]

- He emphasizes that even at 33, there's a long time horizon for investments.

- The power of compound interest and consistency is highlighted.

• 7. Practical Steps for Beginners [12:40]

- Start with building an emergency fund.

- Determine a sustainable monthly investment amount. - Invest in global, low-cost ETFs as a starting point.

💡 Important Insights

• • Financial Security First: Prioritizing an emergency fund protects against making poor investment decisions during crises [2:57].
• • Consistency over Timing: The speaker emphasizes a disciplined, long-term approach, rather than trying to time the market [8:29].
• • ETF Advantages: Low-cost ETFs offer diversification and ease of management, making investing accessible to everyone [8:47].

📖 Notable Examples & Stories

• • Selling Investments: The speaker's experience of liquidating most investments to buy a house highlights that setbacks are not the end of the road [0:13].
• • Wife's Transition: The speaker's wife switching to ETFs and aligning their investment strategies showcases the importance of a shared financial vision [9:16].
• • Bitcoin as a Controlled Habit: The speaker's approach to Bitcoin as a small, regular DCA investment to manage risk and maintain exposure [7:33].

🎓 Key Takeaways

• 1. Financial stability (emergency fund) is the foundation of a successful investment strategy.
• 2. Long-term investing in low-cost ETFs provides a simple, diversified approach.
• 3. Consistency and a disciplined system are more important than attempting to time the market.

✅ Action Items (if applicable)

□ Assess your financial situation and build an emergency fund. □ Determine a regular investment amount. □ Research and consider investing in global, low-cost ETFs.

🔍 Conclusion

The video provides a practical and encouraging message: it's never too late to start or restart investing. By prioritizing financial security, focusing on low-cost ETFs, and maintaining a long-term, consistent approach, anyone can build a portfolio capable of generating wealth over time.