Become an Investor

The Ultimate Guide to Long-Term Investing for Absolute Beginners

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You probably ended up here because you want to understand the basics of investing.

You may have accumulated some savings but are overwhelmed by conflicting information. You wonder how long-term investors assume average annual rates of return, when it’s common sense that investing is inherently risky. And you fear missing out… Especially when everyone highlights the importance of starting as early as possible, while you don’t have the sufficient knowledge to do so.

Welcome!

First thing’s first: I get where you’re coming from.

I was also there. The target audience of Become an Investor is none other than my former self – the person who was eager to put his money to work ASAP but had to spend months into making sense of unstructured and oftentimes incomplete information.

In summary: this is an introduction to investing in a way that I would have liked to learn when I started.

Become an Investor is for:

• People that want to start investing in the stock market
• People that want to save time and learn in a structured way
• People interested in personal finance and FIRE enthusiasts
• People willing to gain control over their financial future and well-being

As you can see, the set is pretty broad.

And if I think about it, there is hardly anyone who wouldn’t benefit from acquiring the knowledge in this book.

This book can change your life.

Rest assured, the chapters are self-contained and built exclusively upon previously covered concepts. No prerequisite knowledge is required, no experience is expected, and no familiarity with any terminology is assumed.

And by the time you master the content, you can expect to possess skills that will enable you to manage a globally diversified portfolio of various asset classes in an almost hands-off manner and without having to pay a cent to financial advisers.

A non-inclusive list of what you can expect to find inside

• An introduction to investing and the proven securities that can facilitate long-term success
• Risk management through diversification and ways to implement it within and across asset classes
• The benefits of index investing and utilization of low-cost index funds and ETFs
• Ways to figure out the ideal asset allocation and investment strategy for your goals and circumstances
• Actionable items to put everything you’ve learned into practice and start accumulating long-term wealth as soon as possible

And no, you won’t find investment advice. The goal of this book is to make you not need any.

FAQs

I’m not familiar with the finance lingo. Will I have difficulties following the content?

Absolutely not. If I say “DCA into the ETF with the lowest TER“, you can rest assured that you’ll know exactly what DCA, ETF, and TER mean. The only thing you’re required to bring is comprehension of everyday English and some willingness to learn.

Can I start investing with 10$?

Technically yes. But after reading this book, you’ll understand the difference between betting and investing, which will make questions like this one obsolete.

Until then, start by investing 10$ in your knowledge.

I don’t have much money saved up. Will I benefit from reading the book?

This book doesn’t only cover technicalities. It will also teach you how to approach investing based on your circumstances, savings, and income. How to recognize when to be aggressive and when to be more conservative.

It’s perfect for people who already have an income stream and at least some savings, not necessarily a lot.

Can I learn this for free online?

Yes. You can even learn some of the concepts on my blog. But if you’re interested in saving a few months of unstructured research, confusion, and uncertainty, while losing potential gains by not starting as early as possible – it’s a steal.

Is this applicable if I live in [country]?

The principles behind building wealth are universal. Some unrelated restrictions may exist if you live in a communist country.

Currently there’s a global pandemic / financial crisis / election. Is it the right time to invest?

It’s always a right time to invest. The relevant questions are how, in what, and how much.

Abstractions aside, Become an Investor will teach you how to invest during booming economies but also during downturns. It covers proper allocation of resources, but also establishing a safety net.

How do I know it’s not a scam?

The book doesn’t contain financial advice, affiliate links, or any recommendations for specific services or shady platforms. I don’t have any interest, financial or other, in you investing or following the information provided. This book will teach you how to efficiently make investing decisions by yourself. You alone decide what to invest in.

How do you know the strategies work?

It’ll take more than a paragraph to answer this question. In conclusion: you’ll be able to match the world’s long-term economic progress. And as long we’re advancing in technology and productivity, economic growth is a guarantee.

What if it doesn’t work for me?

Take the risk. As you’ll learn inside, there are no rewards without the appropriate amount of risk. It certainly won’t work if you don’t do it.

I have formal education in finance. Is this another round of calculating bond yields?

No. You won’t be left feeling that you “understand the things in theory, but can’t put it into practice“.

I know about index funds and ETFs, but struggle determining my asset allocation and investment strategy. Is there something of value for me?

In my honest opinion, the case studies themselves are worth the price of the book. Especially for people at your level. They illustrate diverse examples of circumstances in which people pursue investing.

Anyway, if you’re really confident in your knowledge on these securities, you may overpay 2 chapters. But most probably you’ll end up picking up a few new things.

Definitely worth it.

Okay, I’m sold! Where can I buy it?

An Overview of the Contents

1. Introduction to Investing – Truths and Misconceptions
2. Introduction to Stocks – Basics of Equity Investments
3. Introduction to Bonds – Basics of Fixed Income Investments
4. How to Place Orders – Understanding Exchanges and Brokers
5. Diversification Demystified – Long-Term Investing Done Right
6. Index Investing – Global Diversification Made Easy
7. Market Cycles Explained – Bulls and Bears, Bubbles and Recessions
8. Mutual Funds and Index Funds – Active vs Passive Management
9. ETFs – Understanding Exchange Traded Funds
10. Index Funds vs ETFs – A Breakdown of Your Expenses
11. Asset Allocation and Rebalancing – Optimal Distribution of Your Wealth
12. Asset Allocation Case Studies
13. Investment Strategies Comparison – Cost Averaging vs Lump-Sum Investing
14. Investment Strategy Case Studies
15. Your Investor Policy Statement – Enforce Discipline with Careful Planning
16. Investing in Action – An End-to-End Overview