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How to Start Investing

Investing gets over-complicated all the time.

Don’t be intimidated. It’s not as hard as you think.

There are a few basic rules to always remember, such as:

  • Invest in index funds. I know I sound like a broken record, but the average investor should be investing in index funds. It takes a lot of time to research individual stocks and spending all that time doesn’t guarantee your success. Also, index funds provide automatic diversification within the stock market and they save your time!
  • Spend your time elsewhere. You’re better off devoting your time to earning more money, improving yourself and doing the things you love. Even if you could beat the index by a few points, is it really worth the time you spend?
  • Avoid paying high fees. One of the best things about index funds is the low fees. You shouldn’t be paying more than 0.5% on a good index fund. And honestly, you shouldn’t even be paying that much.
  • Avoid taxes as much as possible. You’ll be avoiding high fees, but don’t let Uncle Sam take it either. Find the best ways to shelter your money, legally, from paying taxes. Your company’s 401k and/or an IRA is your best bet.
  • Follow Buffet’s first rule. Buffett says the first rule is to not lose money. Why? Probably because a 50% decline fully offsets a 100% gain. Index funds are pretty well protected. Take more risks when you’re young, but don’t be stupid.
  • Time, not timing, is everything. Don’t try to time the market. You can’t. I can’t. Can George Soros? It’s debatable, but we are not George Soros and buying low and selling high never happens consistently. Save yourself the stress and buy low-cost index funds. Think long term growth.

Articles to Start Investing

Investing for Retirement

Automate Your Retirement

Learn More About the Stock Market

Books on Investing in the Stock Market

  1. The Intelligent Investor by Benjamin Graham
  2. The Essays of Warren Buffett by Warren Buffett and Lawrence Cunningham
  3. Why Stocks Go Up and Down by William Pike and Patrick Gregory
  4. Financial Statements by Thomas R. Ittelson
  5. One Up on Wall Street by Peter Lynch
  6. Active Value Investing by Vitaliy N. Katsenelson
  7. Why Are We So Clueless about the Stock Market? by Mariusz Skonieczny
  8. F Wall Street by Joe Ponzio
  9. Beating the Street by Peter Lynch
  10. The Little Book of Value Investing by Christopher H. Browne
  11. Why Smart People Make Big Money Mistakes and How to Correct Them by Gary Belsky and Thomas Gilovich
  12. Value Investing: From Graham to Buffett and Beyond by Bruce C. N. Greenwald
  13. The Shortest Investment Book Ever by James O’Donnell
  14. Common Stocks and Uncommon Profits by Philip Fisher
  15. The Little Book That Builds Wealth by Pat Dorsey
  16. The Motley Fool Investment Workbook by David and Tom Gardner
  17. The Automatic Millionaire by David Bach
  18. Quality of Earnings by Thornton L. O’glove
  19. The Five Rules for Successful Stock Investing by Pat Dorsey
  20. Security Analysis by Benjamin Graham
  21. Bull: A History of the Boom and Bust, 1982-2004 by Maggie Mahar
  22. The Four Pillars of Investing by William J. Bernstein
  23. A Random Walk Down Wall Street by Burton G. Malkiel
  24. Million Dollar Portfolio by David and Tom Gardner
  25. The Snowball: Warren Buffett and the Business of Life by Alice Schroeder
  26. The Little Book that Beats the Market by Joel Greenblatt
  27. Buffett: The Making of an American Capitalist by Roger Lowenstein
  28. Little Book of Common Sense Investing by John C. Bogle
  29. The Millionaire Fastlane by MJ DeMarco
  30. Stocks For The Long Run by Jeremy Siegel

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