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In this episode, Dave and Andrew share a practical “back to basics” starter guide for new investors—focusing on the foundational decisions that matter before you ever pick a stock.
They also cover the big beginner considerations—time horizon, risk tolerance, and fees—plus the most common starting paths like ETFs/index funds, 401(k)s (especially if there’s a match), robo-advisors, and eventually individual stocks. The throughline is simple: start small, stay consistent, and don’t interrupt compounding.
Key Topics Covered:
Start with your “why” so you don’t quit when motivation fades
Think long-term: volatility is normal, time horizon is everything
Risk tolerance matters more than “the perfect pick”
Fees quietly destroy compounding (and add up fast)
Simple starting paths: ETFs/index funds, 401(k) match, and easing into individual stocks
Timestamps:
00:00 – Intro
01:55 – Why invest: savings accounts vs. stock market returns + inflation
04:34 – Lifestyle inflation
05:24 – Compounding
07:16 – Volatility short-term vs. growth long-term
09:01 – Risk tolerance
11:36 – Don’t chase returns
12:24 – The “hole in the boat” that kills compounding
15:39 – Open a brokerage account (it’s easier than ever)
19:13 – 401(k) match: “free money”
20:45 – Robo-advisors: convenience vs. control
27:24 – Best time to start
29:08 – “Stock market is a casino” fear
32:42 – Final push
Resources Mentioned:
The Value Spotlight Newsletter: https://einvestingforbeginners.com/value-spotlight-newsletter/
Have questions or want your story featured? Email the show at newsletter@einvestingforbeginners.com or comment below. Your feedback shapes the podcast!
Remember, invest with a margin of safety—emphasis on the safety. Have a great week, and we’ll talk to you next time.
Timestamps are generated by artificial intelligence, and are not 100% accurate depending on the platform used for listening.
Today’s show is sponsored by:
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