This is the best investing advice I have ever heard

There's one piece of investing advice that can help your portfolio weather any storm.

Transcript

00:00Hey there investors, I am Dan Klein, co-editor of The Street along with my friend Todd Campbell.

00:05I wanted to give the best piece of advice for investing that nobody ever gave me.

00:10Now, this isn't because my parents were not good parents, it's not because my teachers

00:14were not good teachers, it's because people didn't think that way.

00:17And the number one thing you should do as a parent is tell your kids to invest early.

00:21Frankly, make your kids invest early.

00:24So my son, when he got his first job working at a Wendy's, I made him take a percentage

00:29of his income every week and invested in the stock market.

00:32What did he buy?

00:33He bought companies he understood.

00:35He owned shares of Microsoft, he owned shares of Target, he owned shares of Starbucks, he

00:39probably owned shares of Walt Disney, I'm not sure.

00:42But it is things he understands, but more importantly it reinforces that habit.

00:46And if you put very small amounts of money into the market and then let it sit for 40

00:51years, the return on that is going to be exponential.

00:55So if you look at a 9% average return and you're buying blue chip, really safe companies,

01:00don't let your kid chase the latest fad.

01:03Have them buy the companies that are part of their everyday world.

01:06Your kid will get to 45, 50, 60 and be rich.

01:09More importantly, your kid will get to 30 and have the down payment to buy a house.

01:13So the hardest time to save is early on when you make the least money.

01:17But if you get them to save while they still live in your house, while they don't have any

01:20expenses, that gets that habit, gets it going.

01:24There is more great advice at TheStreet.com.

01:26I am Dan Klein.

01:27Come see me there.