Index Fund

pexels-photo-210607.jpegI’ve always been interested in stocks.  It seemed like a great way to make some quick money, but I was extremely naïve to this. I wouldn’t say I did terrible overall, but it hasn’t been that great either.  DANG was the first stock that I got and convinced my sister to invest with me, it was supposed to be the Amazon of China!  Boy were they wrong.  The stock ended up doing very poorly and we lost most of our money.  Not every one of my picks went like that though.  I did get into some good stocks like Apple, FB, and a few others, but after doing much more research I realized Index funds were the way to go for me.  If Warren Buffet, one of the greatest investors of all time says so, it has to be true, right?  I am a believer now.  It is just so hard to pick only winners if you aren’t a professional, which I am definitely not.  I also don’t have the self control to avoid high risk high reward stocks.  Even top hedge funds couldn’t beat out the S&P 500 index funds.  With very low expense fees, you are essentially investing in all the big companies through the S&P 500.  It is a very passive approach to investing and much less stressful.

My pick

Since I opened my account with Vanguard in July 2013, my rate of return has been 11.6% between VFINX and VASVX.  I am now going to stick with VFINX, as it is a very low cost index fund.  It has performed extremely well, 10.5% in the past 10 years and even pays dividends!  I will still try to invest in individual stocks, but with significantly less money than before, as I still find it interesting and want to keep learning about the stock market.   I’ll get more into stocks and trading later.

What are your picks for stocks or index funds?

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