Dear Reader: Welcome to the No-Bullshit Guide to Investing

https://preview.redd.it/e2ukqugt3mjd1.jpg?width=1420&format=pjpg&auto=webp&s=eb34356aba31b580a9a196d92c37fa5db0037f00

I am writing this article as if I am writing it for my younger self. This article is for people who haven’t tried investing in their whole life and never considered it an option.

Do you think investments are only for rich people, not you? I sincerely ask you to read further. I covered everything I wished I had known earlier. I am sure it will help you.

Disclaimer: I am NOT trying to sell my course or get you into a get-rich-quick scheme, don’t worry.

Why Do I Have to Invest?

All the investing advice would sound empty if you don’t understand WHY you need to do it.

Let’s start with a simple question. Name one food you loved as a kid and still enjoy. It should be something you can buy at a store or restaurant, not homemade. Good, how much is the food? And can you recall how much it was when you were a kid?

We all have different items on our minds, but in my case, it is Chinese noodles.🍜 It was $3 when I was a kid, but now it is $7. I swear it was $6 months ago. I believe you can say the same about the prices of your food. What the hell is happening here?

Everything gets more expensive as time goes on. It is called “inflation.” From now on, whenever you see the word on the news or hear older people talk about inflation, you can translate that as “Everything gets more expensive.” Inflation is always there and becomes more visible when you compare the price of the same product over a decade. If you think about it, it’s not only about food. The price of houses, gas, video games, cars… everything is getting more expensive all the time.

Now, let’s say somehow I had a good amount of cash as a kid. As a kid, if I had $3,000, I could purchase 1,000 bowls of Chinese noodles. But if I had kept the same amount of cash until now, I would only be able to buy 428 bowls. That is less than half of what I could have purchased! 😭

Noodle is the best, for real.

Weirdly, the fact that you have the same amount of cash doesn’t mean you can purchase the same amount of products. In a world where everything gets more expensive all the time, the purchasing power of cash is being decreased all the time. That’s why rich people say cash is shit. Not because cash is worthless, but because cash in your bank account or wallet keeps losing its value like a water container with a small hole.

When you keep all of your cash in a bank account and think it’s safe, the value of it is silently decreasing. A week or a month won’t be a big problem, but when it comes to years or decades, the loss of purchasing power will grow bigger. This is the reason why you have to invest. Your cash in a bank account, what you thought was safe and secure, is actively losing its value.

I think I can put it like this: If you are not investing, inflation will steal value out of your cash.

Investing is NOT about becoming rich quickly. Investing is about protecting the value of your cash and stopping staying poor.

Okay… What Exactly Is Investing?

Investing is essentially using your money to make more money over time. Instead of just spending it on things that lose value, like clothes or phones, you put it into something that has the potential to grow in value.

Maybe you can say: “Okay, but can I start investing later? I don’t have enough cash. I need to support my family.” I think all of these reasons are valid. We all have our challenges in life. It can be tough. But hey, investing is simpler than you might think.

I think the fact there are so many types of investments is intimidating to young people. You can buy stocks, bonds, raw materials like wheat or gold, real estate like houses or lots, or even crypto.

And the thing about investing is you can lose your money if you are reckless. It’s not a gamble. You need to make educated decisions rather than throw your money into what “Investment Influencers” tell you to buy.

Where Can I Start?

My recommendation for new investors is to invest in an ETF called QQQ. You might be wondering, "What the heck is QQQ?".

https://preview.redd.it/ea49j6rh4mjd1.png?width=1346&format=png&auto=webp&s=189b5972448c7c372ac1f0c21ab35b2ca964b1db

In short, if you buy QQQ, you can invest in the best companies in the US at the same time.

In detail, QQQ is an exchange-traded fund (ETF) that tracks the performance of the top 100 companies listed on the Nasdaq stock exchange. These companies are some of the biggest names in tech and innovation—think Apple, Microsoft, Amazon, and Google.

The graph shows the historical performance of QQQ. As you can see, it has been always great “in the long term.” I took this screenshot on 2024/08/18, you can check the latest price of QQQ 🔗[HERE](#).

For now, the price of one share of QQQ is $475, which means you need at least $475 to invest in it. If that is too much, you can invest in 🔗[QQQM](#). It’s the same ETF, just cheaper and newer.

I recommend you check it yourself because you can also search for big companies you know and see how their stock prices changed over time. You don’t have to understand much. At this point, just be aware that there are a lot of companies that you can invest in. (❗️That doesn’t mean you can invest recklessly.)

Why QQQ?

QQQ is the Safest Choice: The goal here is not just to make as much money as possible but to make a reasonable amount of profit without struggling with information overload. Investing in QQQ lets you empty your mind, and not worry about the market or individual company’s profit. That peace of mind is as valuable as profit itself.

1. Diversification: When you buy QQQ, you're not just investing in one company but in 100. This spreads out your risk because even if one company doesn't do well, others might do great.
2. Strong Track Record: Historically, QQQ has performed better than many other investments over the long term. The companies in this fund are generally leaders in their fields, meaning they’re likely to keep growing.
3. "Never Bet Against America": This quote from Warren Buffett, one of the greatest investors of all time, reflects his confidence in the long-term growth of American companies. QQQ is filled with companies that are driving the future of the U.S. economy, and betting on them is like betting on the country's continued success.

How Do You Start?

1. Choose a Brokerage: Open an account with a brokerage. You can find many trustworthy options by doing a quick Google search. Look for reputable firms, preferably old enough. Almost every country provides local brokerage that can be accessed with a mobile app, so you don’t even have to visit them in person.
2. Invest Regularly: Once your account is set up, search for QQQ and purchase shares. It’s a good idea to invest regularly -monthly, for example- even if you start with a small amount. This helps to mitigate the impact of short-term market fluctuations and reduces the risk of investing a large amount all at once.
3. Be Patient: Investing isn't about getting rich overnight. Expect to see some fluctuations in the short term. The key is to stay invested for the long term, allowing your money to grow over time. Consistent investing and patience are essential for harnessing the power of compound growth.

I will keep writing about investing or things that I wish I had known earlier. I think I will write about slightly advanced investing techniques next. Follow my account if this article helped; maybe the next article will be even better than this. Hopefully. Feel free to share this to people who need this. Please comment if you have any questions. Let me know what you think. Upvote would be my motivation for coming works as well. 👍

Lastly, Don’t do crypto. It’s more a gamble than an investment. Cryptocurrency is unpredictable and unreasonable, with a market filled with scams. Cryptocurrencies lack regulation and stability, making them a stupid choice for most investors. Stay away from anyone who tells you otherwise; they might be stupid or misleading you.