How a Young Entrepreneur Built Capital Markets Profits Into a Growing Business
Yair Magid, a 32-year-old business owner from Givat Shmuel, shares his journey into the capital market, managing a portfolio split between US indices and tech stocks.
Introduction to New Investors
Every week, we profile new retail investors in the capital market, examining their investment patterns and insights alongside their personal stories. Yair Magid, 32, from Givat Shmuel, is the owner of a chain of math and English learning centers for teenagers.
Portfolio structure: 65% in S&P 500 and Russell 2000 indices, and 35% in individual stocks (primarily Palantir) and Bitcoin-tracking indexes.
Building a Business Through the Capital Market
Yair Magid grew up in a large family that drove him to work hard and succeed. "We are seven siblings and two parents, and we lived happily together, but the financial situation was never stellar," he recounts. "Already at ages 13-14, I worked at all kinds of teenage jobs."
Just over a decade later, he was exposed to the capital market and discovered that the money he saved from working could generate more money, while also enabling him to open an independent business. He founded the "Ksem" learning center chain, which makes English and mathematics lessons accessible to children from large families, much like the one he grew up in. "My parents could not afford private tutoring. I knew I wanted to change this reality for other children," he says.
From Beginners' Apps to Strategic Investing
"At age 26, I started getting interested in the market, and at 27 I actually began investing funds in stocks and indices. Until then, I had no awareness of the subject. From ages 13-14, I went out to work and was always a man of hard work, but one day my younger sister sent me a YouTube video by Micha Stokes about investments, and for the first time, it sparked the whole idea that money could work for me."
Initially, Magid downloaded Leumi's Pepper Invest trading app, which was the most accessible option, and started experimenting with buying and selling stocks. Over time, as his capital grew and his strategy matured, he transitioned to more advanced trading platforms, emphasizing the importance of maintaining absolute control over his investment choices, amounts, and timing.
Lessons Learned and Future Goals
Reflecting on his journey, Magid shares key takeaways: "One of the first things I learned is not to buy when a stock is at its peak. I would often buy when a stock or an index was at their peak and there was a rush towards them. I learned that most of the times I invested when indices were at their peak, a decline followed. Today, I wait for a dip to buy at better prices.
"The second lesson I learned is patience, understanding that a portfolio takes time to grow. In the beginning, with initial excitement, I would do things rashly and then lose. Over time, I learned that patience in the capital market pays off."
Magid has generated a 40% return on his portfolio over the past five years, actively using his profits to fuel the growth and branding of his expanding business ventures.
