Let’s be honest with each other.
More than 95% of investors underperform the market.
The main reasons for this?
Trading too much (costs harm your return)
Trying to time the market is a fool’s game
Emotional investment decisions
Lack of patience
This study of JP Morgan shows that the average investor achieved an annual return of 3.6%, while the S&P 500 returned 9.5% over the past 20 years. A difference of 5.9%!
While Compounding Quality genuinely thinks that his portfolio can outperform with 3% per year in the long term, most investors would be better off buying an index fund and not care too much about his/her investments.
Everyone should invest in stocks as it’s the best way to create wealth.
For those who aren’t interesting in researching stocks themselves, an ETF Portfolio is the way to go as it only takes you 10 minutes per months to manage.
Do you have a colleague, friend or family member who isn’t interested in stocks but wants to secure their financial future? This ETF Portfolio is everything he/she needs.
Why should everyone invest?
If you invest $250 per month for 40 years at 9% per year, you’ll be a millionaire ($1.18 million)
If you invest $250 per month for your child from age 0 to age 18 and your son/daughter doesn’t touch the money until he/she turns 67, your. child will have $11 million (!)
Obviously these numbers should be adjusted for inflation but you get the point.
Compounding Quality ETF Portfolio
Here are the rules for the ETF Portfolio:
Every month, I’ll buy an ETF or add to an existing ETF with the portfolio for $500
Please note that the majority of my investable assets will be invested in individual stocks (you can also follow this portfolio with 100% transparency)
There will be maximum 5 ETFs in the portfolio (Keep It Simple, Stupid!)
The costs of an ETF may not exceed 0.3% per year (roughly 5x as cheap as a mutual fund)
Are you ready?
Let’s dive into the most easy and lazy ETF Portfolio of all time.
(The portfolio will launch from the 1st of October).