Focus on success

Exchange traded fund (ETF)
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An exchange traded fund (ETF) invests in a group of shares that make up an index

, such as the S&P/ASX 200. An ETF allows you to diversify your portfolio without having a lot of money to invest.

You can buy or sell ETFs just like any other share. ETFs generally have lower ongoing fees than managed funds. But if you want to invest small amounts regularly, you’ll pay a broking fee on each contribution.

Can You Purchase Ford Stock without a Broker?
On the other hand, you can purchase Ford (NYSE: F) stock without a broker or a brokerage account. To buy Ford shares directly, you need to contact Ford’s transfer agent Computershare directly. Usually, the best way to contact Computershare is through its website. However, you can telephone or email the Ford Team at Computershare directly.

Research stocks you’re interested in
Before buying any stock, you’ll want to do some research on the companies you’re considering. Make sure to read the company’s annual report, or 10-K filing with the Securities and Exchange Commission (SEC), as well as the most recent quarterly reports to get a better understanding of the business and how it’s performing.

Before you make a purchase, you should be able to explain how a company makes money, its position relative to competitors, and what you think the next three to five years are likely to look like for the business. Be sure to pay attention to valuation, or what you’re paying compared to what you’re getting as a shareholder.

Go ready-made
If you don’t know where to start, you could go for a single, ready-made fund that holds investments from around the world.

Interactive Investor has a list of six quick-start funds. “These are well-diversified, multi-asset portfolios that are very competitively priced,” says Moira O’Neill, its head of personal finance. They include Vanguard’s LifeStrategy funds, each investing in thousands of global companies.

Alternatively, there are model portfolios on investment websites. These include a mix of some of the most popular funds and can be used as a template to build your own portfolio. AJ Bell Youinvest offers four ready-made options, tailored to whether you are cautious, balanced, adventurous or seeking income.

Thinking, Fast and Slow, by Daniel Kahneman
This book looks at financial planning and decision-making from a psychological standpoint. How do our biases and faults influence our financial plans and judgment of the stock market? To find the answer, psychologist and economist Daniel Kahneman explores how two systems work together. “System 1” is fast, instinctive, and emotional, while “System 2” is slow, deliberative, and logical.