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The Basics Of Investing In The Stock Market
You have a little money, you keep some in a jar, maybe you want to add more to the jar one day. That’s where we come in. ( Yes I am quoting the Wedding Singer) Love that movie. At Broth Investing we believe knowing how to be smart with money can be life changing. We became financial experts with a lot of blood, sweat and tears, It’s our superpower and we want to share it with you.
How to get started investing in the stock market.
Buy a small cap or mid cap index fund, learn how to analyze individual companies, pray and just chuck money at something.
These are your three main options. For most people buying an index fund with a low-cost structure is enough. You want this to always be less than .5% . If you want to learn how to analyze companies and build your portfolio we will teach you in future articles.
In the meantime, your like small cap, midcap are these types of mushrooms? I’m too sober for this please explain.
A small cap is a company worth between 50 million and 1 billion, these companies have a bit more risk but offer higher investment rewards.
A mid cap is a company with a value of over 1 billion but less than 30 billion, anything above that is a large cap and your investment returns could be more modest.
We don’t think blindly chucking money at something without researching it is a good idea so option 3 is not something we would recommend.
In our next article we will start to teach you how to analyze companies for investment and how to build your financial future.
We will also talk about other investment vehicles beyond stocks but one thing at a time.