fbpx
Video: How to Invest Your First $1,000 in the Stock Market

Donnie Nguyen

March 8, 2020

VIDEO DESCRIPTION

In this video, I share with you three ideas on how beginning investors can invest their first $1,000 in the stock market. These ideas were born from my twenty years of experience as an investor.

Please note that I’m not a financial advisor. I received a bachelor’s in computer engineering, and I’ve been working in information technology ever since.

Advertisements

Even though I don’t have a finance background, I believe that one of the best ways to achieve financial freedom is investing in the stock market.

THE SCHOOL OF HARD KNOCKS

I learned about investing through the school of hard knocks – losing 50% in my first-ever investment in a telecom mutual fund circa 2000. I spent my life savings of $2,000 on that fund.

That experience taught me how much I didn’t know about the stock market. So I did what I always did when I wanted to learn about something. I took massive action by reading dozens of books on the subject. I read the writings of Peter Lynch, Warren Buffett, and other legendary (and not-so legendary) investors.

Advertisements

That reading paid off. It taught me the value of long-term investing in great companies that you know and understand well. It also taught me the immense power of index investing.

During my twenty years of investing, I’ve experienced three major economic disruptions.

  • Dot-com Bubble (the early 2000s)
  • Great Recession (the late 2000s)
  • Coronavirus Pandemic (2020)

Each time, it seemed like the sky was falling. But instead, my portfolio would make it through the downturn and reach new heights.

THE INVESTING JOURNEY

In my 20 years of investing, I managed to grow my $2,000 investment portfolio to well over $200,000. Don’t get me wrong. I did hit some bumps along the way.

Throughout my investing journey, I experimented with and tested many different kinds of investments. Like many other beginning investors before me, I’ve made plenty of mistakes.

Advertisements

Despite all those mistakes, I still managed to grow my portfolio over 100-fold during that time. Had I committed to one of these three long-term investment ideas early on, I’d easily have doubled my money or more.

MY YOUNGER SELF

The advice in this video is advice I would have liked to give my younger self. Had I just known this information ten years earlier, I’d be a lot closer to my financial goals.

When it comes to long-term investing, time is of the essence! 

Through the power of compound interest, it would be better to invest $10,000 at age 25 than to even invest $20,000 at age 35.

Consider this, $10,000 invested for 40 years with 10% theoretical returns would yield $452,592.56. 

Advertisements

Investing $20,000 for only 30 years would only yield $348,988.05.

That’s $100,000 less even though you started with twice the amount.

That’s why it’s so important to start investing early.

I hope that you enjoyed this video. If you did, please leave me a comment below and share this with someone who could benefit from it. Feel free to share this video on your favorite social media site. 

Happy saving and investing!

Advertisements
M1Finance.com
Stock of the Month: Bank Of America (BAC)

Stock of the Month: Bank Of America (BAC)

Bank of America (NYSE: BAC) is the November stock of the month. With promising news of a coronavirus vaccine, the theme lately has been about the “reopening stocks”. As I scrutinized stock of the month candidates that will benefit the most from the vaccine, it was...

Beyond Meat Stock Fried – Time to Buy?

Beyond Meat Stock Fried – Time to Buy?

Beyond Meat stock (NASDAQ: BYND) got fried after releasing its Q3 2020 earnings on Monday (November 9, 2020). Beyond Meat stock was down 36.7% from last month's highs of $197.50 as of yesterday's closing price of $125.01. In this video, I discuss two reasons why the...

3 SPAC Stocks to Buy Now (November 2020)

3 SPAC Stocks to Buy Now (November 2020)

SPAC stocks continue to rise in popularity. These special purpose acquisition companies make it easier for a private company to go public than the traditional initial public offering (IPO) process. In this video, I review three pre-merger SPACs in their searching...

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
Donnie Nguyen

Donnie Nguyen

Donnie Nguyen is the founder and CEO of Wolves of Investing. He started investing in the stock market in the early 2000s. He follows the teachings of Peter Lynch, Warren Buffett, and other investing legends. When he's not investing or blogging, he loves spending time with his family traveling and experiencing the world.

Follow Donnie on Facebook and Twitter!

0 0 vote
Article Rating

Pin It on Pinterest

Shares
Share This