![]() Don't put your money in all at once do it over a period of time. "Just pick a broad index like the S&P 500. At his 2004 company shareholder meeting, Berkshire Hathaway, the billionaire investor was asked by one investor whether he should buy Berkshire Hathaway stock, invest in an index ETF, or hire a manager to do it. Warren Buffett, dubbed the 'Oracle of Omaha' is one of the best investors of all time. So how can one get started in investing into the stock market? There are a few ways, but one could take on billionaire investor Warren Buffett's advice as a good starting point: Warren Buffett and ETF Trading: The S&P 500 Index ETF It's pretty clear as to why billionaire investors like Warren Buffett invest in the stock market. To register today, simply click the banner below. If you're ready to see how your investments could grow by investing in ETFs versus a regular savings account, you can do this by signing up for a free Admirals demo account.Ī demo account allows you to trade the markets, including ETFs, risk free with virtual funds. Of course, this is just a hypothetical example, and returns will vary as past performance is not indicative of future performance. Source: The Calculator Site: Scenario 2 with annualised stock market returns at 10% per year An initial 1,000 EUR investment, with regular 100 EUR monthly investments, at a 10% interest rate, in 40 years would now hold 604,720.00 EUR. The S&P 500 index, which tracks the largest 500 companies listed on the New York Stock Exchange, has made an annualised return of approximately 10% a year between 1928 to 2017. Now let's say we turned to the stock market to try and increase the yearly percentage gain. We already know that regular investing trumps singular investment, as shown by the returns of scenario one and two. Source: The Calculator Site: A 1,000 EUR initial investment with 100 EUR saved per month, with 3% interest per year for 40 years - Please Note: Past performance does not indicate future results, nor is it a reliable indicator of future performance. Now that account balance graph is starting to look a bit better! But can we go further? ![]() With the same initial 1,000 EUR, and the same 3% interest rate, in 40 years that same bank account would now hold 95,207.23 EUR. Now, imagine if you also managed to save an extra 100 EUR a month. Surce: The Calculator Site: A 1,000 EUR investment, with 3% interest per year for 40 years - Please Note: Past performance does not indicate future results, nor is it a reliable indicator of future performance. Let's see if we can try to increase the overall return in the second scenario: If you left the money in the bank for 40 years, how much would you have? Well, that pot would have grown to EUR 3,262.04 - hardly life changing for most people. Imagine you put 1,000 EUR into a simple savings account, which paid an interest rate of 3% per year. This section will help lay the groundwork, though.) Invest in a Savings Account (And if you're impatient to start learning about how to trade ETFs, don't worry - we're getting there. In this case, we'll look at investing in a savings account versus investing in the stock market. When you are aiming to invest for the future, it can be helpful to look at the possible returns across different investing scenarios. But first let's take a quick look at what is possible when starting to invest with 1,000 EUR. But is there a solution that can help investors to try and gain access to better returns than the bank without spending all their time trying to find the right company to invest in? Yes there is - they're called ETFs, or Exchange Traded Funds. However, finding the next Amazon and investing in it at the right time is not the easiest thing to do. After all, if you had made a $1,000 investment when Amazon first started publicly trading in May 1997, then in September 2018 that would have grown to around $1,362,000. Maybe you've considered investing in the stock market to try and find the next Amazon. However, like most people, you may be disenchanted with the current savings rate available at your local bank. ![]() Whether it's family or friends, or wealth gurus like Warren Buffett or Tony Robbins, learning to trade and invest is on most of our to-do lists. You've probably heard the phrase 'you need to invest for the future'. All there is to know about how to trade ETFs, including what ETFs are and why investors use them, the different types of ETFs available to you - ETF stocks, ETF CFDs, ETF funds, Index ETFs, Tech ETFs, the S&P 500 Index ETF and more - how to identify the best-performing ETFs, and finally, how you can start trading ETFs today, starting with just 1,000 EUR!
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