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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
