Karl Kaufman
Stock Market Mentor
A Simple Way to Start Investing
In this lesson, you’ll learn one of the easiest ways to get started in the stock market—even if you know absolutely nothing right now.
It all comes down to a powerful investment tool that can grow your money automatically, with very little effort: index funds.
Should You Be Intimidated by the Stock Market?
Absolutely not.
The best way to learn is by doing. Start small—with an index fund or a few shares of a company you know well.
The point isn’t to get it perfect—it’s to get going.
Investing is a long game, and the sooner you start, the more time your money has to grow.
How $100 Turns Into $500,000
Let’s break it down.
Over the past 95 years, the S&P 500 has delivered an average annual return of 9.7%, including dividends.
If you invested just $100/month into an S&P 500 index fund and left it alone, you’d put in $48,000 over 40 years.
With compounding? That comes close to $500,000.
Yes, past performance isn’t a guarantee. But that 95-year stretch includes:
The Great Depression
World War II
The 1970s energy crisis
Black Monday
The dot-com bubble
9/11
The Great Financial Crisis
The Coronavirus Pandemic
And still—the market marched higher.
Even someone with zero investing knowledge, who consistently invested $100/month, could build half a million dollars.
It’s not about brilliance. It’s about patience and consistency.
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Your Turn: Exercises
Take a few minutes to think through the following. These exercises are here to help you build context—and build conviction.
1) Look at how the market performed during the COVID-19 pandemic.
What happened to the S&P 500 in early 2020?
How long did it take to recover?
Which investors came out ahead—and why?
2) Open a list of S&P 500 companies.
How many do you recognize?
Which ones do you use every day—tech, food, household brands?
What does that tell you about where your money could be working?
You don’t need to memorize tickers or earnings reports.
Just start thinking like an owner.Ready to automate your investing? Let’s dive deeper in the next lesson.
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QUIZ
1. According to the lesson, what is the average annual return of the S&P 500 over the past 95 years?
2. What does an index fund aim to do?
3. What result was highlighted for investing $100 each month for 40 years at a 9.7% compounded annual return?
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Disclaimer: This course is for educational purposes only and does not constitute financial advice. Investing involves risk; please consult a licensed professional and review the full disclaimer at American Dream Investing.
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Leave your comments and questions below.
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