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4) Investing & Asset Growth
Index fund investing basics
Don't try to pick the next Apple or the next Tesla. Most professionals fail at this. Instead, buy the whole market. Use Index Funds or ETFs (Exchange Traded Funds). An Index Fund like VOO or VTI buys a tiny piece of every major company in the U.S. If one company goes bankrupt, you are fine because you own 499 others. Over the last 100 years, the U.S. stock market has grown about 10% per year on average.
Don't try to pick the next Apple or the next Tesla. Most professionals fail at this. Instead, buy the whole market.
- Use Index Funds or ETFs (Exchange Traded Funds). An Index Fund like VOO or VTI buys a tiny piece of every major company in the U.S.
- If one company goes bankrupt, you are fine because you own 499 others. Over the last 100 years, the U.S. stock market has grown about 10% per year on average.
Free Resource: Index Funds for Beginners: A Step-by-Step Guide to Passive Investing
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