Brief explanation of what we are doing?

We are going to do a number of things here:
1. Invest ~$110 dollars up front, then $25/ week 
2. Monitor how our portfolio grows
3. Compare the growth of these investments to other portfolios
4. Learn from the experience

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Goals of this case study

There is one main goal with this case study, along with a few smaller goals we hope to achieve.

This first week will basically just be a description of what the goals are, and the start of the process.

Then we will see how things grow over time as we invest into different things and learn.


The main goal

The main goal of this is to be able to compare the performance of passive investing, which is a reasonably tested, and proven, investment strategy, and the results of what happens when a person invests emotionally, based purely on speculation.

The hope, is that people will be able to see a side-by-side comparison of the investing strategies and have a better understanding of the stock market.

Other goals

There are a few other goals to discuss, just for transparency.

Most people invest in the stock market to allow their money to grow, so that seems like a good idea.

My girlfriend and I are also trying to start a family, so learning how to properly manage our finances is important.

We don’t want our future kids to grow up in bad conditions simply because we were too lazy to learn how money works.

Children’s education:
Passive investing is really easy, it just requires time and patience, so part of the idea of this is to get a better idea about how to teach children about the stock market in an easy way, that way they can dominate it later in life, if that’s what interests them.

Yes we realize we would get more support if we lied and said that children’s education was our main goal, and that we just need your money to help the children, but that isn’t what this is.

We want to help everyone, especially kids, and we will, but to do that we need data, and with data we are able to get the information we need to help people, AND the money we need to do it, without having to mislead people into thinking this is purely a charity, which it is not.

Investment strategy

The strategy we are using for this portfolio is to pick two different reasonably priced ETFs, invest a similar amount of money into them over time, document the results, then compare the results with other portfolios to get a better idea of how the stock market behaves, and hopefully make some money in the process.

My M1 Finance pie will always split my investments 50/50 between the two ETFs I choose.

M1 Finance App

We are using the free robo-advisor M1 Finance as our brokerage. Click below for a review of their services, OR follow along and see if you like their app.

Summary of Week 1, Month 1

This week is the first “week” but really how it worked was:

Friday, July 17th, 2020 – Invested $110.22 into a M1 Finance portfolio split 50/50 between Vanguard High Dividend Yield Index Fund ETF Shares (VYM), and Vanguard Value Index Fund ETF Shares (VTV).

Monday July 20th, 2020 – Invested $25.06 into the M1 Finance portfolio for this week, which was also split evenly between the two stocks.

The above picture is the most recent update of the portfolio, taken on Tuesday, July 21, 2020.

Our portfolio has already returned $1.70, but we will see if that holds up.

Thoughts and reflections for moving forward

Index funds definitely feel safer than investing in an individual company I don’t know much about. But time will tell.

All of the successful people say to just keep doing what you do and it’ll work out, so that’s what I’m going to do. I’m just going to invest what I can a little at a time.


Summary of Week 2, Month 1

This was the first real week where everything was running smoothly. 

Tues, July 29th, 2020 – Invested $24.99 into a M1 Finance portfolio split 50/50 between Vanguard High Dividend Yield Index Fund ETF Shares (VYM), and Vanguard Value Index Fund ETF Shares (VTV).


passive investing

Today our portfolio dipped a tiny bit, but that’s okay. We are building up shares and if prices drop then we’ll simply get more shares for our money.

Thoughts and reflections for moving forward

I’m considering adding in SPHD because it pays a monthly dividend and appears to be fairly valued, but we’ll see.

ETFs definitely feel safer than individual stocks, so I’ll probably try to start buying more of them.


Is There Anything Else You'd Like To See?

We want to show people what it’s REALLY like to go from having no money, to investing in the stock market, to having a dream life.

If there’s any other way we can help you do that, please leave it in the comments so we can see if we can make it happen, thanks!

Other stock market portfolios

To give ourselves some context about how each strategy performs, we need something to compare it to.

Here is a list of the other tests we are doing to see what happens:
Cash App Emotional Investing Case Study 
Robinhood Day-trading/ Swing Trading Case Study – Coming Soon…