00:00Do you want to invest but have no idea where to start?
00:03Don't panic, we got you.
00:06These are the ABCs of investing in stocks.
00:11Coinage, life well spent.
00:13Presented by GEICO.
00:14Decide which long-term goals you want to accomplish by owning equities.
00:18Are you saving for retirement or funding your kid's college tuition?
00:22A diverse stock portfolio is the best for success over time.
00:25If you put all your dough in one stock, you risk losing big time.
00:30Or if you get lucky and strike green, that false sense of ability could set you up for bigger failure down the road.
00:36Bet across different stocks.
00:38This path will be cost and time effective without needing too much attention or skill.
00:43Do this with a low-cost mutual fund or exchange-traded fund.
00:47Take a peek at the Money50 list of best mutual funds and ETFs for some serious inspo.
00:52Let's say you invest in an S&P 500 index fund, a grouping of the 500 largest U.S. companies.
00:58If one stock runs into problems, the other $499 will keep your account propped up.
01:05If you really want to try your hand at buying individual shares, be careful.
01:09Set limits and only play with the money you can afford to lose.
01:12Open an account online with a major brokerage firm like E-Trade, Fidelity, or Schwab.
01:17Only buy and sell for less than $10 per transaction.
01:21Compare fees, check what tools are available, and look for account minimums.
01:25Go for high-quality investments that are growing faster than average, or that have lower-than-average valuations.
01:31Wait, what's that?
01:33Valuation is the stock's price relative to the company's profits, sales, and assets.
01:37Use sites like Morningstar.com and Zaxx.com to find companies' valuations.
01:42Take your time, do your research, and happy investing!
01:45Coinage, life well spent.
01:49Presented by GEICO.
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