Bellmore Group Management Services, Tokyo Japan There are 3 things to understand about investing | Page 2

You can start by investing in a low-cost index fund that does the diversification for you — like the Vanguard Total Stock
Market Index Fund. Another increasingly popular tool for novice investors are robo-advisors, which use an algorithm to
build and manage your portfolio for a small annual fee. Or, you can follow Buffett's advice to stick with a simple S&P 500
index fund, which invests in the 500 largest US companies.
These are commonly called "set it and forget it" investments that grow over time, regardless of short-term performance.
Just make sure you're not paying annual fees higher than 0.5% or it'll eat into your returns.
ESI Money sums up the winning formula best: "Save early, save often, and save more as time goes by."