Investment Thesis
Warren Buffett will forever be one of the world's greatest value-focused investors and has taught many people about the concept of investing through his stockholder letters and available literature on his methods. At one point in his career, he had mentioned that it's better to just buy and hold the S&P 500, essentially to compound a return over time as the market continues to rise. This notion was also described in a recent book titled Just Keep Buying, written by Nick Maggiulli. Building off this idea and incorporating John Bogle's idea of owning low-cost exchange-traded funds (ETFs) over the long term, I thought it would be great to develop a nest egg portfolio that can be tracked periodically to see total performance compared to more active investors. My investment thesis is that over time as I dollar-cost average into a combination of ETF holdings, I will compound at a rate equal to, or slightly better than the S&P 500. My goal is to put together an ETF portfolio fund where I will invest the same amount each month, regardless of market conditions, and track it here, along with other ETF candidates that could be implemented into the portfolio. I believe that over time, I will compound a high level of return and build a nest egg that will allow other portions of my portfolio to take on higher levels of risk.
Where to Start
First, I will start by allocating $300/month into my brokerage account, which will automatically purchase fractional shares of the ETF portfolio during the first full week of each month. As I am a relatively young investor, I anticipate that my dollars invested today will compound significantly over time, and although I'm investing $300/month in this strategy, it can be done with smaller or greater amounts. Breaking this down into holdings, I believe nest egg
