Yep, the percentage gain and the amount of time invested are important. Those that criticize the small "dollar amount" do not see the big picture. Investing as Bob has described is simple, but not fast.
I turned 40 a month ago and started investing 2 months ago. $1 USD a day I invest in VOO. $1 USD a day I invest in SCHD. I have 25 years to do that. I have a seperate retirement fund. So my investments hopefully will be like a cherry on top. PATIENCE.
its really tempting to cash out the gains but if you think about long term gains,,, its like " Nah Im Good,, let it compund ".. its gonna be much bigger 10-15 years from now,,, i hope.. good video as always.
Thank you! Your original video really resonated for me. I’ve automated a fixed daily amount in a few selected stocks and I love it! Easy, no brainer strategy. I also have some cash in a HYSA to take advantage of market dips, like last March.
My 401k has Fidelity 500 index I recently transferred most to that fund. I previously had that dumb retirement schedule investment which was only getting like 6%
In a given year investing can be a terrible idea, over decades it's a good idea. You can't always have a good year and the bad years are prime opportunities for dip buying. The key is to stay calm during the bad years.
People lose money because they don't leave it alone to grow. Panic selling, churn, not actually contributing, taking the money out for other stuff. Put it in, and leave it grow. Stop thinking "I HAVE TO 10x THIS" No you do not.
Your missing a very important aspect of compond interest! You would have to sell and then reinvest the the initial investment as well as the 9%, and keep doing that year over year. Just investing 5 dollars a day isn't compound investing. It's called dcaing or (dollar cost averaging). If you're going to teach people something, teach it the correct way. Have a good one.
Hmm, interesting perspective, although what you refer to is called Simple Interest, not compound interest. If I have $5 and invest it, and it grows 9%, that would then equal $5.45 for the first year (considering I only invested $5 for the whole year). Then, next year, if it grows 9% again, I would have $5.94. This is because the $5.45 from the prior year is growing 9%. Selling it would cause a tax nightmare and what you mention isn't the concept of compound interest. So what I am teaching is correct. I refer you to this to learn more: www.investopedia.com/terms/c/compoundinterest.asp
The video says the same thing I did just in a different way. If you sell yes you do pay taxes. Let's say 100 dollars was invested to make math simple. You make a 10% gain. Now you have 110 you reinvest the 110 and get another 10% now you have 121 then you just keep repeating the process. The 121 becomes 131.10, so as time goes by the 10% interest is compounding.
$AAPL is 48% of the portfolio. I guess you do not like diversification? Anytime you have half of your portfolio in one stock, that is a recipe for disaster
You’re absolutely right - Stash is one out of 5 brokerages I have. I also have 3 retirement accounts. So in this one it is heavy weighted and you’re 100% spot on about diversification. Overall individual stocks make up only 10% of my entire portfolio wealth
