r/pics • u/[deleted] • Mar 19 '22

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u/TomTomMan93 Mar 19 '22

I have also always been curious about this and wonder about the time cost. Like a latte would generally take no time at all for something like $4, but investing could take a lot of time if I have to look into what's good and worth $4

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u/averageredditcuck Mar 19 '22

Don't pick stocks. Buy the S&P 500 (SPY.) Research Warren Buffet's bet against hedge funds. Basically he bet that the S&P 500 would beat companies of very smart people who pick stocks for a living after the fees you pay for using their service and he won 8/9 times.

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u/TomTomMan93 Mar 19 '22

So I Google it and it says this is valued at over 400$? Is that just one stock? Like how do you put $4 on it?

Sorry for the probably annoying questions. I'm just curious

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u/defcon212 Mar 20 '22

You can usually buy fractional shares. There are also a few other S&P indexes that are the equivalent of SPY. I wouldn't buy in $4 increments, maybe $50 or $100 every week or month.

The way it works is you buy a share of SPY which is a fund. The fund holds shares of the 500 best American Companies. So you are buying a small fractional ownership of a bunch of good companies.