Normal Person Explaining Stock Market

I'm just a normal person explaining the stock market, but what I'm about to share with you is pretty abnormal. I grew up poor raised by a single mother. In fact my parents are both bad with their finances. I saw how stressful it was on them back when I was young, now I see how they aren't set up for retirement because they didn't understand how the stock market works. I'll give you my take on the best way to invest in the stock market. 

Normal person explaining stock market

Having seen first hand how destructive financial illiteracy can be for a family at a young age I made up my mind that I'd never let that happen to me. The good news is that the learning curve is actually pretty short. You don't have to be a guru to be a successful investor in the stock market. In fact, Warren Buffett made a $1,000,000 bet that he could beat any Hedge Fund Manager using cutting edge investing tech over a ten year period with a simple technique that you can easily do. 

What is the S&P 500

Spoiler alert, Buffett won by a mile. This technique was simply investing into the S&P 500. In simple terms the S&P 500 is America's top 500 companies. When you invest into the S&P 500 index you are essentially investing into all of those 500 companies. Buffett said when he dies he will have all his wife's investments sold and invested into the S&P 500. The S&P 500 is a benchmark, most investors aim to beat the index but 90% of hedge funds don't beat it. 

So if you aren't a top 10% investor which most of us aren't if we are being honest with ourselves, then investing into an ETF that tracks the S&P 500 is the best way to start. I'm just a normal person explaining the stock market, and here is how to invest like Buffett did in his million dollar bet. 

How to invest in the S&P 500

Here is a list of ETFs that follow the S&P 500:

  • VOO
  • SPY

I personally use M1Finance to invest and you can easily find these 3 ETFs and invest into the S&P 500. If you sign up using this link you'll also get a sign up cash bonus. Using the same technique as Warren Buffet to invest will turn you from a normal person not knowing much into a matching what Buffett will do for his wife. Not as sexy as many hope, but in reality it's a sure fire way to win while investing. 

If you are interested in investing into Dividends read more about my favorite monthly dividend ETF, here is my JEPI review

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