December 18, 2025

Back to the Basics: A Starter Guide for New Investors

37 minutes

Want to go deeper on real companies with simple, long-term investing guidance? Subscribe to the Value Spotlight Newsletter, where Dave and Andrew share stock ideas, valuations, and lessons from real businesses straight to your inbox.

In this episode, Dave and Andrew share a practical “back to basics” starter guide for new investors—focusing on the foundational decisions that matter before you ever pick a stock.

They also cover the big beginner considerations—time horizon, risk tolerance, and fees—plus the most common starting paths like ETFs/index funds, 401(k)s (especially if there’s a match), robo-advisors, and eventually individual stocks. The throughline is simple: start small, stay consistent, and don’t interrupt compounding.

Key Topics Covered:

Start with your “why” so you don’t quit when motivation fades

Think long-term: volatility is normal, time horizon is everything

Risk tolerance matters more than “the perfect pick”

Fees quietly destroy compounding (and add up fast)

Simple starting paths: ETFs/index funds, 401(k) match, and easing into individual stocks

Timestamps:

00:00 – Intro

01:55 – Why invest: savings accounts vs. stock market returns + inflation

04:34 – Lifestyle inflation

05:24 – Compounding

07:16 – Volatility short-term vs. growth long-term

09:01 – Risk tolerance

11:36 – Don’t chase returns

12:24 – The “hole in the boat” that kills compounding

15:39 – Open a brokerage account (it’s easier than ever)

19:13 – 401(k) match: “free money”

20:45 – Robo-advisors: convenience vs. control

27:24 – Best time to start

29:08 – “Stock market is a casino” fear

32:42 – Final push

Resources Mentioned:

The Value Spotlight Newsletter: https://einvestingforbeginners.com/value-spotlight-newsletter/

Have questions or want your story featured? Email the show at [email protected] or comment below. Your feedback shapes the podcast!

Remember, invest with a margin of safety—emphasis on the safety. Have a great week, and we’ll talk to you next time.

Timestamps are generated by artificial intelligence, and are not 100% accurate depending on the platform used for listening.

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