Apple, Amazon, and other big companies announced big earnings in the first quarter of the year.
As of this moment, here is how much it costs to buy stock in America’s biggest companies:
- Apple: $176.89
- Amazon: $1,5702.08
- Facebook: $174.02
- Berkshire Hathaway: $191.61
- Google: $1,026.30
We own stock in all of them.
Okay, I’m being a little misleading.
I did not purchase the actual stock of any of these companies.
What I did was invest in an index fund and the largest holding of that fund right now includes these companies.
So, we own stock in all of these large companies and about 500 more.
I sometimes think I would like the idea of investing money in individual stocks of companies I know well and buy from a lot.
Then, I remember that I do own stock in them; it’s just through an low-cost index fund.
Investing in individual companies risky and can be costly to make transactions.
The key to success in investing is to be diversified.
Index funds allow you to invest in the entire market (or close to it), which turns investing into a smart financial decision and not a gambling game.