How to Invest in Stocks for Beginners – How to Start Out!


Chris Hill: Hey, everyone! Thanks for watching!
I’m Chris Hill, coming to you from Fool Global Headquarters in Alexandria, Virginia, joined
by senior analysts Jason Moser and Ron Gross. Thanks for being here, guys!
Ron Gross: Always a pleasure! Hill: We’re going to be taking your questions
about all kinds of stocks. But first, we’re going to be talking about one of the questions
we get most often here at The Motley Fool: “How do I get started investing?” We’re going
to be talking about things to do to get ready to invest. The guys will each have a starter
stock to recommend. And if you’re looking for even more detail in print form, we’ve
got you covered. You can go to fool.com/start. We have an investing starter kit with a lot
more details and five additional stocks to check out. It’s free. You can
find it at fool.com/start. Ron, let me start with you. A recent Gallup poll,
barely 50% of Americans are investing in stocks. Gross: That’s not good. Hill: It’s a little disappointing —
Gross: [laughs] It’s a shame, really. Hill: — not just because of what we do for
a living. Let’s start with how people get there. First thing right out of the gate is,
you’ve got to get your personal finances in order. Gross: For sure. You have
to get your financial house in order. Two big things come to mind
when I think about that. You don’t have to think of a 100-thing checklist. First one is,
build up an emergency fund. If things get bad — and that means different things
to different people, but, let’s say, if you lose your job, or whatever — you don’t have
to turn to the liquidation of stocks to pay your essential expenses. Not your luxuries,
your essential expenses. We typically say, build up an emergency fund of three to six
months. Now, six months can sound a little bit daunting; and, quite frankly, I think it is.
It’s hard for a lot of people to save six months’ worth of essential expenses.
So, start with three. Build up over time towards six, if you can. You will read some financial
press that even says a year would be best; but, again, that’s pretty difficult, to save
after-tax money to that extent. But, get yourself an emergency fund before you start
to commit money to the stock market. Second of all, pay down high-interest card debt.
If you’re paying 15% to 20% on a credit card — let’s say you have one that’s 18%
— it may not feel this way, but every dollar you pay back of that 18% credit card debt,
you’re actually earning an 18% rate of return, a rate of return that is likely higher than
you’ll earn in the stock market. So, by far, that is the best thing you can do for your
financial health, is to get rid of that high-interest credit card debt before you
put money into the stock market. Hill: Yeah. If I told you, “Here’s a stock,
and I guarantee you’re going to get an 18% return every year,” you’re interested. Gross: I’m in! Hill: Jason, for a lot of people, once they’ve
taken care of the things that Ron touched on, a great first step, particularly if your
employer offers this type of vehicle, a 401(k) plan. Jason Moser: Yeah. To my mind, this is the easy first step. Investing is as easy or as
difficult as you want to make it. I think, in a lot of cases, people want to go from
zero to 60. And really, you know the old saying, you have to learn to walk before you can learn
to run. If you invest really well, eventually you start dancing because life is just
really good. With that all said, starting out with something like a 401(k) or a retirement plan
with your employer is very easy to do, because they do the work for you. I think today, most
employers now are starting to take this approach of, “We’re going to go ahead and opt everyone
in and force you to opt out.” I want to see more of that because I think it’s very easy
for employees to say, “You know, I’m just not making enough money, I can’t afford to
put this money into a 401(k). I need that cash on a bi-weekly basis to pay my bills,”
or whatever. Honestly, you can’t afford to not do a 401(k) plan or any kind of retirement
plan. And if you go ahead and just get that money going out on a bi-weekly basis, or however
often you get paid, it’s just gone. Once it’s out of your hands, it’s out of your hands,
and you figure out how to adjust your living expenses accordingly. And, in most cases,
an employer is going to give you a match, whether it’s 2%, 3%, 5%, whatever that may
be. If you do not take advantage of that, it’s not like you are leaving free money
on the table; you are, in fact, leaving free money on the table.
Gross: And don’t forget, the 401(k) is designed to take in pre-tax money, so you get out of
the taxes right up front. You get that benefit. Then, if you get a match, you get that benefit.
And then, your money continues to grow until you’re ready for retirement on
a tax deferred basis. It’s a beautiful thing. Moser: The example that we use a lot when
it comes to working here at The Motley Fool, or if we do a Fool School seminar, whatever
that may be, it really does boil down to patience and timeline. We talk about looking down decades
from now. That’s the idea behind a 401(k). And there’s a little math drill that we like
to do with folks. I’m going to make sure I read this off my computer so I don’t mess
it up. We give people a choice. Would you rather have a one penny, and then every day
for the course of a month, you double the value of that penny — so, the first day you
have one, the next day you have two, the next day you have four, then eight? Would you
rather have that over the course of a month, or would you rather that I give you $100,000 every
day for the course of three months? Most people hear the $100,000 every day and they think,
“Of course that’s what I want to go with.” The math is simple, if they earn $100,000
every day for a month, they’re going to have basically $3 million. If you choose the penny
option — and this is the power of compounding — you end up with $5.37 million dollars —
Gross: I’ll take that one. I want that one. Moser: Yeah, see? So, the purpose of that
drill is to show people how powerful compounding can be. And it’s really not until the last five
or six days of the month where that hockey stick really takes off. But it’s pretty impressive
to think about it. If you think about it over the course of a lifetime, that is the power
of compounding. If you participate in a 401(k) or retirement plan, that’s the kind of power
we’re talking about there, which is why it’s so important to do.
Gross: I’ll just add, if you don’t have the ability to invest in a 401(k), don’t be afraid
to open up a Roth IRA, which allows you to put in after-tax money, but still allows it
to grow tax-deferred for years and years and years. I think you can put away around $6,000
a year currently on an annual basis, up to the amount of your gross earnings. You can’t
put away more than you’ve earned in any given year. But, it’s another great way
to save for retirement. Moser: And you can go through payroll at
your work, have them automatically set that up through your paycheck so you don’t have to
do any of the heavy lifting there. It just automatically gets transferred
over every time you get paid. Hill: Alright, let’s get to stocks. Ron, where
should people begin looking when they’re thinking about finding stocks and
building out their own portfolio? Gross: I would be remiss if I didn’t mention
that we have a wonderful Motley Fool service here called Stock Advisor, which is a great
place to find the beginning stocks that you’re going to start with. But I’m not here to plug
Stock Advisor, so let’s put that aside. I like to read, whether it’s reading financial
press like the Wall Street Journal, or just reading on the internet in general, news. You come
across so many companies, so many services, when you do that, that you’ll probably
find something that interests you. But perhaps even more important is, when you’re out there
just living your life, take in the experience. When you’re in a store, see if you like the
products they’re offering. When you’re in a restaurant, see if both the experience and
the food are good. When you have a service, whether it’s a carwash or a doctor or any
kind of healthcare or a computer service, did that really meet your needs?
If you look around long enough, you’ll find a company that both interests you and that
you respect. Then you can do a little bit more digging, and that can often lead to companies
that you’ll start to invest in and be proud to invest in, because don’t forget, you literally
are a part owner in these companies once you invest in their common stock. It’s a really
good feeling to be proud of the companies you own. Hill: It’s a great reminder that so many of the products and services that we use and
interact with every day, so many of the things in our home, the coffee that you’ve got in
front of you, these are produced by publicly traded companies.
Gross: For sure. Hill: I think this last point, Jason,
is particularly important. It’s always important to have a good mindset as an investor.
But certainly, you think of the last couple of weeks, and the headline at the end of the
day is the Dow down 500 points or whatever like that. So, focusing on your temperament,
and figuring out what kind of stomach you have for this, that’s almost an underrated
portion of investing in the stock market. Moser: I think it’s extremely underrated.
I think it’s one of the things that we work on the most here with our members and prospective
members and our clients, helping them deal with the emotional rollercoaster that is investing.
I’m trying to think about this — for me, it feels easy to deal with at this point.
Granted, I’m a little bit older, a little bit wiser. But you know what it really all
goes back to? My dad got me on the golf course back when I was like five years old —
I’ve been playing golf for basically all my life. That is as mentally taxing a game as you’ll find.
Maybe that’s where I figured out how to deal with the emotions and keep
everything in check. But, I think with investing, as with anything else in life, when you’re
trying to keep a level head and keep from letting your emotions get the best of you, it really
does boil down to just having a few things that you can fall back on. Maybe Charlie Munger
would call those mental models. I don’t know. A few things that I look at as easy ways for
investors to take the emotions out of it. The first one we talk about is, always diversify.
Make sure you have enough holdings in your portfolio that you don’t have any one that’s
keeping you up at night. A simple drill that I do with my daughters, they’re 13 and 14
now, and they both have portfolios with about 12 or 13 different holdings — every time
they buy a stock, that’s it. They can’t buy that stock again. The next one has to be a new one.
And it’s all about promoting diversification in the portfolio, and making sure
they spread that money around. I’ll go back to what Ron was talking about
— staying engaged with the world around you. Information is power. Knowledge is power.
And if you can do that, not only understanding the products and the services that we
encounter every day, but understanding a little bit what makes those headlines that we read tick.
I’m not talking about understanding the interest rate policy or anything like that, but understanding
the general basics of how the economy works, so that you can see financial news and
digest it, to ascertain whether it really matters or whether it’s really just a headline.
And then, another way to help keep a level head is to keep a blog or a journal if you’re
into that kind of thing. Being able to look back over history, to find out what you were
thinking when you made a certain decision, and does that thing you were thinking still
hold today? If not, do you need to change something? But really, I do think it all goes back to diversification first and foremost. And that’s
where that 401(k) and fund investing can really help. Gross: I’ll just add that for folks at the beginning of their investing journey,
this ability to compound your return, that one penny turning into two pennies, is your best
friend. It’s the most exciting part of how investing journeys turn into wealth. And the
most important part of the compounding equation is time. And the best way you can give yourself
the gift of that time is to not trade in and out of companies, not try to time the market.
Stay invested. Let compounding work for you as it has for all those other investors
over the last 100, 200 years. Moser: I’m glad you mentioned that.
It takes me to something I was thinking about before we started today. In investing, you have to
accept the irrational. It doesn’t always make sense. A good example here, you go back to
2008. You look at Google. At the time, it was Google. It’s Alphabet now. During the
year 2008, from January through December, Google’s revenue grew 31%. By any measure,
that is a great year. Their stock fell about 50%. Now, I can’t tell you exactly why that
happened. I think it had something to do with the timeframe and what was going on then.
But with a business that on the surface, the fundamentals are doing very well,
the stock seems to be in the tank, it didn’t make a whole heck of a lot of sense. But that
was one little year out of a longer timeline. We talk about that longer timeline, that’s
a good example of why it matters. If you bought shares of Google during that time, you’re
feeling pretty good about it. And if you held on to your shares of Google through that difficult
time, obviously you came out on the other end OK. So, oftentimes with investing,
you have to be able to accept the irrational. Hill: We’re going to get to your questions
in just one moment. But first, as promised, a stock from each of you for people who are
looking to start a portfolio. Ron Gross, what do you have?
Gross: 17 years ago, this stock was the stock I first purchased for both of my children.
And it’s still a wonderful stock that can be a starter stock for new investors today.
That is Disney, owner of the world’s most valuable media brands, whether it’s the
Disney Studios or Pixar, Marvel, the Disney parks, ESPN. So many great things. They have so many
avenues of growth, so many avenues to generate revenue and cash flow. They’re recently integrating
the 21st Century Fox acquisition. I think that’s going to be exciting. We have the coming
launch of Disney+, which I think is going to be a great addition for them to grow.
They pay a dividend. It’s been increased every year over the last 10 years, so you not only
will get appreciation, but you’ll get a nice little dividend payment as well.
A wonderful starter stock. Hill: Jason, what about you?
Moser: New season of Dancing with the Stars. Gross: Oh, Sean Spicer! No comment!
Moser: That’s Disney, come on! In line with what Ron’s saying there, one of the first
stocks we got my daughters, Nike. It is, to me, one of the quintessential first stocks
to buy. And I think one of the main reasons is, it’s just very easy to understand what
they do. And we see that Nike swoosh everywhere. In its simplest form, Nike is just selling
stuff to people. And they happen to focus on a very big and resilient market in sporting
goods and apparel and equipment. But when you look at the actual business, somewhere
in the neighborhood of $130 billion market cap today. It’s a big company, but it still
has a lot of room to grow when you look at that global market opportunity. It is a global
company. More than half of their revenue comes from outside of North America. They pay a
dividend, and that will continue. It’s financially very healthy. Something we can all relate to.
And, they are innovating, bringing more technology into the fray, relating to this
new-fangled tech retail world that we’re all trying to figure out here. I think this has
been a great business for a long time, and I think it’s going to be a great
business for decades to come. Hill: Alright, we’re going to get to your
questions. Again, you can go to fool.com/start if you’re looking for more details on everything
we’ve been talking about — including, by the way, five additional stocks,
if you’re looking to start a portfolio. And, hey, if you like the videos, please think about
giving us a thumbs up. We appreciate it. It helps us do more of these videos.
It helps other people find the videos as well. Let’s get to the questions that are coming in.
Ron, I’ll go to you first. Jim is asking, “I’m sitting on good gains with
Berkshire Hathaway. Should I be thinking of selling since Warren Buffett may be retiring soon?”
Gross: Great question! I’m actually more high on Berkshire Hathaway now than I have
been in a very long time. It’s actually my largest shareholder, truth be told. I think
everything is going really well. It’s obviously a holding company filled with wonderful businesses.
It’s more than 50% insurance, but it’s got railroads and energy and retail and manufacturing.
Yes, Warren Buffett will not be at the helm forever. But he’s put in a structure that
I think will work going forward with Ted and Todd taking over the investing duties.
Two great operators likely to either share duties, or one be CEO to handle the operating companies.
I think they’re going to be in great shape. The stock is only trading at 1.3X book value.
Book value, another term for net worth. 1.3X the company’s book value, which is actually
right around the price that Warren Buffett himself says he would be interested in buying
stock back of Berkshire Hathaway. So, I think it’s a wonderful time to
not only hold it, but actually buy it. Hill: Don asks, “I see a lot of stocks with
high share prices. If I do buy, I can only buy a few shares. With $500 to $1,000 to work
with, should I be focusing on low-priced stocks?” That’s a great question, one we get a lot
because, let’s face it, on a gut level, more seems like better. It’s always more exciting
when you own 100 shares of a company rather than just a couple of shares.
Moser: It does feel that way. I would encourage you to not think that way, though, Don. Look
more at the value of the actual share that you’re buying. What’s worth more — one $500
share or 10 $50 shares? The math tells you they really should be the same. It’s more
about the fundamentals of the business behind the share. I know that we’ve run into a time
here recently where a lot of these great businesses see it more as a badge of honor that they
have this really high share price, whether it’s Markel or Booking Holdings or Amazon
or Alphabet, you name it. All of these companies have these stock prices that are really going
through the roof there. And it can make it difficult to buy those shares if
you’re working on limited funds there. The nice thing is, we are in a period of time
now where you are able to buy fractional shares. That’s one way to go about it. But I would
focus more on the actual business at hand. Don’t let the share price fool you. A $500
share price could in theory be very cheap, depending on the fundamentals of the business.
Hill: Alright, we’ve got a question here from Chris, who asks, “Is it best to cut my losses
on a stock that’s lost more than 10% over several months? Or should I wait and hold
since I don’t want to take a loss?” Another gut feeling I think we can all
identify with. Nobody likes to take a loss. Gross: Yeah. Chris, that’s a very fair question.
My answer would be, whether you currently have a gain or a loss on a stock at the current
moment should be completely irrelevant. The only thing that matters is the future,
and your loss is a result of the past. So, you have to make a decision about what you think
are the prospects of this company going forward. If you’re favorable, then absolutely hold.
If you’re negative, by all means, there’s no need to hold onto a company that you’re
negative on or don’t want to own anymore, or don’t agree with, or don’t like their products,
or think management is shady, whatever you don’t like about it. But don’t let the loss
get into your head. It’s one of those behavioral finance things that can grab a person and
make them make decisions that are not appropriate. Hill: Goes back to temperament.
Moser: Yeah. Don’t let the loss sway your emotions there. Don’t be negative because
of the loss. Hold the loss independent, and just assess the business. I think in most
cases, when you’re talking about just a few months, I don’t know that that’s a long enough
time to really change your opinion on the business, unless something very unique is happening. Hill: Scott asks, “Are ETFs a good place
for new investors to put money? Do you guys have any good ETFs to get people started?”
Exchange traded funds. I think people are probably familiar with stocks and mutual funds.
ETFs, little bit of a different vehicle. Moser: We had a question on this morning’s
MarketFoolery that was very much geared towards this. A gentleman is getting ready to become
an uncle, and he wanted to get some investing going for his niece or nephew, and, what’s
a great place to start? I just believe with all of my heart that if you’re getting started,
one of the best vehicles can be an ETF, and an ETF that follows the S&P 500 index fund.
To give you a ticker there, VOO. That is the Vanguard 500 Index there. It is built to mimic
the S&P 500. And when we’re talking about investing, and we talk about these long stretches
of time, being a part of that index is a ticket up over the course of five, 10, 15, 20 years.
When you look at any stretch of history there, you will see over those long periods of time,
that S&P 500 index does very well. And I think that an ETF that mimics the
S&P 500 index is a great place to get started. Gross: Yeah. ETFs typically give you
instant diversification, just like a mutual fund; however, they trade like a stock, one of
the benefits of ETFs is that they trade like a stock. There’s an ETF for every strategy you
could imagine, every sector you could imagine. I think for beginning investors, stay away
from some of those more esoteric ones. Stick with the S&P 500, the S&P 500 SPDRs.
SPY is another one that will mimic the S&P 500. If you want some exposure to small companies,
small capitalization companies, I like the IWM, which is the iShare Russell 2000 ETF.
Between that, small-cap, the S&P 500, larger cap, you’ll have a nicely diversified
portfolio with really not that much work. Hill: Tom asked, “What are the key fundamentals
you look at when evaluating a stock?” I think there are fundamentals that we look at that
are the same regardless of the industry, but then, there are others that are pretty industry-specific.
Gross: For me, the first thing is to understand the business, understand how the business
either makes money, generates cash flow now, or will in the future if it’s not there yet.
You have to like the service or product, I think, first. Second of all, like the management
team that is driving this company and will determine the future. And then we can look
at some other financial metrics. Revenue, growth, margins, how profitable is it,
is that profit growing or declining? And once you look at those things I just mentioned
right there, you’ll have a pretty good picture of how a company is and
whether you want to invest in it. Moser: Yeah. I tend to think quality of the
business first, price of the stock second. So, for me, it’s about, like Ron said, understand
what the business does. Do you use those products or services? Do you like them? If you don’t
use them, do you know people who do? How does the business make money? Is it a business
that has a competitive advantage? Are there switching costs or proprietary technology?
Something that gives it an edge over the other businesses out there in its field. And then,
does it have a management team that’s running the show that you can trust? Is this a smart
management team with a track record of making good decisions? And if you come to the
decision that this is a quality business, then you start looking through the financials, seeing
the growth prospects there. How are cash flows? Look through the income statement. What kind
of profitability is there? And, come to an idea of the valuation of the stock.
But quality of the business always comes first. Hill: Several people are asking,
“Is The Motley Fool still bullish on Stitch Fix? It’s had a rough couple of months.”
Moser: Well, I will say, from my perspective, I don’t have a public opinion on Stitch Fix.
It’s not a stock that I’ve recommended, and I don’t maintain a conviction on it here at
The Fool. I think it’s an interesting business, but there are some concerns for me personally
in the retail space that are keeping me from being able to fully embrace this one.
Gross: I also do not follow it. But as far as The Motley Fool, it remains an official
recommendation of The Motley Fool. Hill: Tim asks, “How can you avoid burning
all your money on commissions when you only invest around $200 per paycheck?” Great question!
Goes to something that I think we’ve touched on a little bit here today, which is that
you always want to keep an eye on the fees. You always want to factor that in.
Gross: For sure. If you’re spending 10% on a transaction fee, that stock has to go up
10% just for you to break even. You have to be careful. We typically caution investors
to keep expenses, commissions, at 2% or less. I really think 1%, quite frankly, is the way
to go. If you pay a $5 commission on a stock, you really should only be investing $500 at
a time or more. If you’re investing $200 a paycheck, maybe wait for two or three paychecks
before you buy a stock. There are some brokerages where you can get free trades. That’s something
to always look into. I encourage people to shop around for low commission rates. But still,
commissions have come down so far over the years. To pay $4 or $5 per trade is relatively
reasonable. So, just be careful. $500 or more, I think, makes good sense.
Moser: One other thing to note is, if you do have a retirement plan that you’re contributing
to at work, a lot of times there’ll be a self-directed option, where the money that’s going into
that plan, you can then say, “I want to invest it in individual stocks.” And they’ll connect
you to a brokerage. For example, we do that here, it connects through TD Ameritrade.
You’re paying a very modest commission there. But because you’re having a fairly reliable flow
of cash coming in in the form of your paycheck and what you’re contributing every paycheck,
that’s another way to not worry so much about the commissions, and maybe have a little bit
more money to invest at any given point in time. Gross: One other little trick is, if you own companies that pay dividends, you can click
the little box and say, “Reinvest my dividends,” rather than take them in cash, and over time,
each quarter that company pays dividends, you’ll buy little fractional shares quarter
after quarter after quarter without paying any commission. That actually
can add up nicely over time. Hill: Raj asks, “Can you guys talk a little
bit about valuation? Some Motley Fool recommendations like The Trade Desk seem really pricey, and
that can be intimidating.” Another great question. By the way, the reverse is also true.
There are stocks that look cheap, and actually, when you look at the business, and you run
the valuation, they’re actually secretly expensive. Gross: Yeah. We could do a whole years’
worth of live specials on valuation, so I’ll just say in a nutshell, theoretically — and I actually
believe it, so it’s not really theoretically — the value of any asset is the value of
its future cash flows discounted back to the present. So, when you look at a company, whether
it’s generating cash flow now or you expect it to in the future, you have to think about
how much those cash flows will be, and how fast that will grow. Does that make sense
relative to where the stock price is today? It’s no different than if you owned a little
business yourself, and somebody offered to buy that business from you for $1 million.
You would have to look at, what cash flows would I get if I hang onto this business
over time? Is that $1 million worth it to me to take right now? Or am I better off holding
onto the stock and just letting the cash flows earn and putting them in my pocket? No difference
between a private company or a public company. Moser: Very difficult to get by, especially
in today’s day and age, where it seems like any company can get out there and maintain
this astronomical valuation, while at the same time generating no profits whatsoever,
Chris. There are a lot of good businesses out there that are on their way to profitability.
I think it’s worth trying to understand what that path to profitability is if it’s not profitable.
Make sure, though, that regardless, your portfolio isn’t devoted to just all of
those types of companies. That’s why I think diversification really helps. You can have
five or six or seven of those highflyers that, maybe they’re not profitable today, but there’s
some promise there, and you can offset that volatility or that stomach-churning valuation
with some more staid performers out there with long track records of profits and
dividends and creating shareholder value. Hill: Several people asking about gold.
Should we invest in gold? Or should we stay away? Where are you when it comes to gold, Ron.
Gross: Here’s the thing: gold doesn’t do anything. A very small fraction of gold is used for
jewelry. Otherwise, we dig it out of the ground, and we put it into vaults.
Moser: Gold just had its feelings hurt. Gross: Since it doesn’t do anything, it doesn’t
generate any cash flow. And since it doesn’t generate any cash flow, I have no idea
how to value it. If I have no idea how to value it, I have no idea what a good price is to
pay for it and what’s a bad price to pay for it. Hill: You just ask the guy at the jewelry shop.
Gross: [laughs] So, therefore, I don’t mess with gold. Having said that, it is a good
hedge against inflation. It always has been, I assume it always will be. If we ever had
hyperinflation, gold will probably be a good investment. But because to me, it’s more of
like a black box, there’s nothing I can do with it. Moser: It’s a hedge. It’s not a bad hedge. I just, I don’t own it. I still can’t quite
figure out how it’s worth whatever it’s worth at any given point in time. Maybe that’s a
risk that I’m taking in my life. But for me, gold just doesn’t hold
a place in my investment philosophy. Hill: Alright, last question before we wrap
up. A question from Linda, who asks, “Do you recommend beginners start investing through
their banks or through a lower-commission one like Robinhood or Questrade? Thanks, really
enjoyed the livecast.” Thank you for watching, Linda! We really appreciate it. Appreciate
the comment. And this goes to the point you were making earlier, Ron. It’s not just the
TD Ameritrades and the Schwab’s of the world who are coming out and lowering commissions
and offering incentives like free trades. We’re starting to see these startup
companies like Robinhood and Questrade. Gross: The competition is pretty severe.
That’s actually good for consumers. That’s why we’ve seen commissions come down
over time. The ones that cost a little bit more offer you a little bit more, whether it’s
a more robust website or better research, better information around tax time. The ones
that are cheaper don’t offer as much. I think it’s good to compare. There’s plenty of websites,
including fool.com, who can match up side by side a lot of these companies, and you can
just see what you’re getting for the price you’re paying. Hill: Alright, Ron Gross, Jason Moser, guys, thanks for being there!
Gross: Thank you, Chris! Hill: Thank you again for watching!
Thank you for subscribing to our channel! If you haven’t subscribed, please go ahead and click
the subscribe button so you don’t miss any future episodes when we go for live Q&As.
Thanks for giving us a thumbs up! And, again, check out fool.com/start for our investing
starter kit. It’s free. Everything we covered and so much more, including five additional
starter stocks. Thanks again for watching! And Fool on!

Paul Whisler

18 Comments

  1. Hey guys, some other show notes:

    Stock #1: 15:31
    Stock #2: 16:43

    You can get our 5 more stocks and our investing starter kit at Fool.com/start!

  2. Great video for investing starters. Been following you guys for a while. Always a wealth of diff information

  3. Not trying to sound cynical… but when giving investment advise consider the fact that not every investor is a US resident or citizen.

  4. I have been listening to your podcasts for a while! Glad to finally put some faces to the voices!

  5. I hav a $151k public portfolio on my channel and hope to grow this to over $1million in under 10 years for those interested. Love the motley fool and would like to see more of Brian stoffel and Mathew cochrane

  6. Thanks for this video, needed to hear it very much. It settled my nerves about my trading on stocks. Enjoying Motley Fool and taking your advice, thanks

  7. How do you make money/profit on the stock market.
    For example I had 5 share of KO. Sold it at the gain of +25. When i sold it the was price was at $57. When i brought it back it was at $54 but I still didn't see that extra cash on hands from the gain when I first sold it.
    Using rohinhood for my portfolio

  8. Big fan of your portfolio of podcast as well as this channel. However, the audio output on the youtube channel is very low. Is there anyway you could adjust the audio on your end? I have the volume turned all the way up and it sounds like whispers compared to other channels.

  9. Jason Moser's silence speaks volumes on the final question at the end of the video regarding commission free brokerage (it looks like he wishes to publicly endorse commission free brokerage, but decides to keep silent on the matter… it may be better not to upset certain folks). Yes, we know Motley Fool advertises on their website for certain commission charging brockerages… and seems to keep fairly silent regarding other brockerages that do not charge a commission. Hey, commission free brokerage is wonderful!!!

  10. INVEST WHILE WE ARE ABOUT TO HIT A RECESSION! GREAT IDEA! – the motley fuccbois need to dump those bags!!!

  11. Looks really interesting . . . wish I could hear what the presenters are saying . . . audio is bad!!

  12. Use my link to get $5 to invest on Stash! They even have learning guides on investing if you don’t know where to start.
    https://get.stashinvest.com/kevinmkumy

  13. great advice to start with.. build up savings, then 401k then buy stock.. solid advice.

  14. If your interested, you can receive free stock with Robinhood. No commission or fees, the stock is valued between $2.50 to $200 and includes dividend paying stock. You do have to sign up an account with Robinhood, which is free and requires no money deposit, to claim it. It will ask for a bank account to transfer funds into this account but there is a button that says "can't find my bank in list" and it lets you skip that. In case you are wondering this is how Robinhood makes money:
    "We generate revenue from:
    Robinhood Gold, our margin trading service, which starts at $5 a month
    Interest from customer cash and stocks, much like a bank collects interest on cash deposits
    Rebates from market makers and trading venues"
    You have nothing to lose, only to gain by using the link to claim your free stock!

    Use this link to claim your free stock:
    invite.robinhood.com/ryanh6860

  15. Listening and learning here. Thank you for the great information for someone who’s never invested. Looking forward to checking out your fool.com/start. 👍Again, thanks!

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