139: How to Buy Stocks and Index Funds for Newbies: Investing 101

Invest Like a Boss

Sam Marks Johnny FD Derek Spartz

Business, Investing

4.8 • 518 Ratings

🗓️ 24 March 2020

⏱️ 74 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

People across the world are shaken by the rapid spread of the coronavirus. Stocks are plunging and the economy crash feels inevitable. And as bad as news seems to every person this situation might have some new opportunities for everyone to finally start investing.

In this episode, Sam and Johnny, who are long term investors, discuss the current situation with the market. They explain why this might be the best time to look into investing. They explain the basics of investing for beginners, give advice on what stocks to look into, how to avoid typical mistakes and what books to read about the topic. Learn why investing in index funds the safest way and how to balance your stock portfolio.

Where we are:

Johnny FD - Sri Lanka
Sam Marks - North Carolina

Discussed:

Recommended:

ArtofFX – Start with just a $10,000 account (reduced from $25,000)
Fundrise – Start with only $1,000 into their REIT funds (non-accredited investors OK)
Betterment – Get up to 1 year managed free
PeerStreet – Get a 1% yield bump on your first loan
Wealthfront – get your first $15,000 managed free
Vanguard - Open an Online Account

Time Stamps:

05:37 - Investing in individual stocks vs investing in index funds
10:15 - "You are not investing in stocks to make 10x, you are investing in stocks to make 8% over the next 20-30 years." - Sam Marks
10:23 - Understanding investment fees
15:05 - Creating an emergency saving fund before investing
21:45 - Books to read before investing
25:00 - How much money should you invest
27:00 - "If you put the money all at once and the market is going down, you are losing in total value, but if you are putting money each month, you are actually buying when it's going down and it's gonna benefit you in the long-run." - Sam Marks
30:22 - Index funds to choose for first-time investing
35:00 - Advice for investors outside of the USA
40:00 - Situation with stocks right now
43:43 - "And the reason why we know the economy is going to recover, it's because it always has." - Johnny FD
47:58 - Stocks vs bonds
50:00 - Taxable and Non-Taxable accounts in the USA
55:46 - Websites where you can invest

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Transcript

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0:00.0	When you save on auto insurance for driving safe with USAA Safe Pilot, you'll feel like a big deal.
0:07.1	Even in a traffic jam.
0:09.6	Save up to 30% with USAA Safe Pilot.
0:12.6	Restrictions apply.
0:15.4	Hey guys, this week's sponsor is Automation Finance, and it's open to both accredited and non-accredited investors. We'll tell you more about them during the break.
0:27.1	Welcome to the Invest Like a Boss podcast. I'm Sam Marks and I'm Johnny FD. We're self-made entrepreneurs who invest our own money and use modern technology to invest like a boss.
0:35.6	Join us each week for exclusive interviews with our network of modern investors,
0:39.1	business owners, and multimillionaires to discover new ways to invest our hard-earned cash.
0:46.0	Hey bosses, this is Johnny and welcome to episode 139 of the Invest Like a Boss podcast.
0:52.3	I'm out here in Sri Lanka and Sam, where in the world are you?
0:55.8	I'm in Charlotte, North Carolina, just starting to enjoy a little bit of social disisolation,
1:01.5	dislocation, disdistening. Social distancing, right? All types of words floating around for
1:06.3	how we're supposed to be behaving during these times, Johnny. Yeah, so if you guys are listening to this in, you know, 2021 or 2022, we're going to try to make
1:14.3	this an evergreen episode.
1:15.5	But what really sparked us from, you know, to decide to sit down and record this is right now
1:21.2	is the midst of the 2020 coronavirus stock recession.
1:26.3	And with the dropping prices, I have a lot of friends messaging me, and I'm sure you as well, asking for your vice, whether they should sell or they should buy more.
1:35.0	Oh, yeah. It's crazy times out there. And we're actually recording this on March 18th. So things are happening so quickly out there Johnny I this reminds me of
1:44.5	during the Bitcoin craze when every time we published an episode it was it was
1:49.5	almost outdated by the time we published it when we recorded to when we published
1:52.8	it just a week later we're not gonna talk too much about coronavirus for the markets
1:56.6	in this we will do a dedicated episode on that next week, but just give everyone a point of
	...

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