The Newbie Guide to Investing in the Stock Market. How to Get Started with Little Money, or No Knowledge!
There are three main ways that MAJOR wealth is created in the United States, and throughout the World. Those 3 are by creating a Business, selling or renting properties in the Real Estate market, and investing in the Stock Market. Of those 3, guess which is the easiest to get started in, and takes the least amount of money? You guessed it, investing in the Stock Market! Well if it's so easy, why doesn't everyone do it? I think one of the main reasons is that we, as well as your traditional Financial institutions, and investing gurus, make it seem more difficult than it really is.
In the simplest form, all it takes to invest in a company via the stock market is 1) Opening a Brokerage Account (as easy as opening a Checking or Savings Account), 2) Depositing money into that account, and 3) Selecting the company or companies* you would like to invest in! Yes, investing in the stock market is as easy as 1,2,3! So why do Financial Institutions, the gurus on CNBC and other forms of media, as well as your friend's coworker's 3rd nephew who hit it big in the market, make it seem like it is so difficult that you MUST pay them (or someone) to do it? Like most things in life, you can make them as simple or as complex as you want.
For example: Warren Buffett is the greatest investor of our lifetime. Over about a 50 year period, he averaged over a 20% gain per year in the stock market, while the overall market gained about 10% per year. Yes, he basically DOUBLED the average gain of the market, which means there was someone (or thousands of others) who gained less than average in the stock market. Traditional wisdom might tell you to just pay Warren Buffett to invest your money, or someone else may tell you that if you pay them you can get similar gains from the stock market. Or you could literally get the exact same gains as Warren Buffett by purchasing stock in the company he is the head of...Berkshire Hathaway, Ticker: BRK/A or BRK/B. Before 1996 you would have needed $33,500 (now over $319,000) in order to purchase 1 share of BRK/A. But in 1996, Berkshire Hathaway created a 2nd class of their stock (BRK/B) in which its cost per share was only $22 (now over $200). As you can see, both are worth about 10x more now than in 1996, so performance for both classes of stock percentage wise, are basically the same. This made it affordable for the Average Jill to invest in Berkshire stock, and let Warren Buffett literally be the captain of their investment ship.
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AJ Mobile Money
Husband | Father | YouTuber | Former ATLien
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