STOCK INVESTING FOR BEGINNERS
“diversify with american index funds. only buy monopolies individually.”
The Lesson
For beginners: use a discount broker like Charles Schwab. Diversify. Don't put everything in one stock. Buy American companies; big American companies are already multinational, giving you global exposure with less currency risk. Use SPDRs (S-P-Y-D-E-R) or index funds, lower fees and instant diversification. The Fortune 500 SPDR is the safest play. Don't buy individual foreign companies. Currency risk can destroy gains even when the company does well. The only time to buy individual stocks: American monopolies during a market downturn. Amazon, Microsoft, Apple, Tesla, companies where competitors can't knock them out. Don't sell until your reason for buying changes.
Real-World Example
A founder has some savings to invest. Instead of picking hot stocks, they open a Schwab account and buy a S&P 500 SPDR. During a market crash, they notice Amazon and Microsoft dropped 30% even though nothing changed about their monopoly positions. They buy some individual shares of each. They hold everything. The market recovers, and their monopoly picks outperform. They don't sell because their original thesis (American monopolies win) hasn't changed.
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