Any pointers for good investment ideas? I am a rookie and the only way I know how to save (grow) my money is to park it in the savings account. Mostly because I am terrible at keeping tabs of the investments. I welcome any (good) guidance , please!
When do you need the money by? How old are you? How much roughly? What is your cost of living? Regardless, I highly recommend Morningstar for investment ideas / research. Their premium subscription is definitely worth it but not necessary when you’re starting out. I highly recommend setting aside a relatively small amount of money to trade/experiment with. It’s important to trade with real money even if it’s a token amount, for psychological purposes. Perhaps around $1000. By using Robinhood you can avoid transaction fees which would make this feasible, but in general Robinhood is not suitable for trading larger sums of money. In theory the optimal portfolio is a balance of index funds in a few categories (US growth stocks, US dividend stocks, foreign developed stocks, long term bonds, etc.) The exact balance depending on your goals and answers to the questions I asked at the start of my post. This strategy works very well if the market is efficient and if a sufficient number of market participants are active investors. Unfortunately the market is very much overvalued right now, especially stocks that make up the index. And there is much less money being actively invested. This is also an opportunity for you. It makes it easier to beat the index. One great stock that is undervalued is Berkshire Hathaway. It’s a bit of a unique stock in that it is a pseudo index fund itself.
Really? Your advice to someone completely new to investing is to go and try to beat indexes? OP, do yourself a favor and just look at Betterment or Wealthfront. End of conversation.
Yes. Investing in the index right now will almost certainly lose you money over the short term (next 5-10 years) Berkshire Hathaway isn’t really a gamble anyway. 💁♂️ At any other time I would recommend investing in the index. I would still recommend the usual diversification (across sectors, stocks, growth vs dividend, market cap) only that the major indexes contain many stocks that are significantly overvalued at this time. never pay more than $1 for $1 worth of assets
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The intelligent investor book is awesome