This blog post is part 2 of a bigger series called “How to Invest”. The first post was about “How much should I invest?”
If you invested in a very low cost index fund, where you don’t put the money in at one time, but average in over 10 years, you’ll do better than 90% of people who start investing at the same time. – Warren Buffett
You will not get that advice from anybody because nobody gets paid to give you that advice. You will have all kinds of people that will tell you how much better they can do for you if you just give them a fee or a commission, but they won’t do better. – Warren Buffett, 2008 Annual Shareholders Meeting
So you decided that you’re going to invest and you ask yourself “what should I buy?”. In the following I’ll attempt to answer this question. You could skip right to the end of this post to find the answer. However, in the following you will see how I derived it.