How do i buy stocks and shares?

How Do I Buy StocksShane Leonard, CFA

1. The two ways to buy stocks

2. Pay someone

3. Doing it yourself

What we’re going to cover

1. The two ways to buy stocks

2. Pay someone

3. Doing it yourself

What we’re going to cover

• Pay someone else

- expert, little control, high fees and …

- poor performance

• Do it yourself

- more time, less fees but …

- no one you can blame

The two ways to buy stocks

1. The two ways to buy stocks

2. Pay someone

3. Doing it myself

How do I buy stocks

• A financial advisor

Pay someone

• A financial advisor

• Buy an investment fund (e.g. mutual fund, ETF)

Pay someone

• A financial advisor

• Buy an investment fund (e.g. mutual fund, ETF)

• But be warned it’s not necessarily good for you

- fees

- performance

Pay someone

Pay someone: fees

$25k

$227k

• 35 years

• Growing 7%

• Paying 0.5% fee

Pay someone: fees

$25k

$64k• 35 years

• Growing 7%

• Paying 1.5% fee

• 28% less $163k

Pay someone: performance

• 2,900 US funds

14%

86%

Pay someone: performance• 2,900 US funds

• 1,800 EU funds 23%

77%

Pay someone: performance• 2,900 US funds

• 1,800 EU funds

• 2,500 Global funds

11%

89%

1. The two ways to buy stocks

2. Pay someone

3. Doing it yourself

How do I buy stocks

• Investing starts with saving

- the more you save the bigger your savings

- the sooner you start saving the larger they’ll grow

• Investing is a long term game

• Investing requires only one skill

- common sense

Doing it yourself: the mindset

• Brokerage account

- minimise the fees

• Buy what you know and buy it for the long-term

- minimise the surprises and the trading fees

• Don’t put all your eggs in one basket

- never be 100% in stocks

- never be too concentrated

Doing it yourself: the tools

How Do I Buy StocksShane Leonard, CFA