Investing in the Stock Market Can Turn $150 Per Week Into $1 Million
Generally speaking, stocks have outperformed other asset classes like bonds and real estate over the long term, and equities have proven to be much less volatile than cryptocurrencies. That makes the stock market one of the best tools you can use to build your wealth, and diversified index funds are a particularly attractive option for many investors.
Of course, buying individual growth stocks can be far more rewarding, but that strategy is also much more risky. A broadly diversified index fund reduces your risk by spreading your investment dollars across a large number of companies in multiple different industries. That said, index funds can still generate big gains over time -- and even, with steady investments, grow into a million-dollar portfolio.
Index funds come in all shapes and sizes, but Warren Buffett has long been an advocate of low-cost S&P 500 index funds. In his 2013 letter to Berkshire Hathaway shareholders, Buffett explained his logic: "The goal of the non-professional should not be to pick winners -- neither he nor his "helpers" can do that -- but should rather be to own a cross-section of businesses that in aggregate are bound to do well. A low-cost S&P 500 index fund will achieve this goal."
Source Fool.com
