The Easiest Way to Start Investing in Canada in 2021
You don’t need to hire someone to invest.
Note: Some links may be affiliate links.
You want to start investing?
Do you know what phone number you have to call to get a hold of the stock buying broker that’s going to make you filthy rich? Neither do I.
I also don’t know how to read candlestick charts or drive a manual.
That last one was unrelated, but I do know the easiest way to start investing in the country of Canada in 2021.
You don’t need to hire someone, spend thousands of dollars, or get a degree. You just need a little bit of time, a phone/computer, and the decision to get started.
How do I find a stock?
A reason why you may be holding off from buying a sweet slice (sliver) of companies to build your stock portfolio isn’t out of an inability to get enough money, but the inability to know what companies are worth investing in.
Now, this could be a 300-page book about how to do that, and there are ones out there.
But for now, let’s give you the easiest way to start investing and that’s super investors.
Think Warren Buffet and Charlie Munger, you’ve probably heard of them, and if you haven’t then you probably haven’t heard of Berkshire Hathaway either.
If that still isn’t ringing a bell, then you’ve definitely heard of the word Billionaire. And Billionaires are what Warren and Charlie are, big ones.
If you don’t know where to start, follow the pros.
DATAROMA is a website that tracks super investor portfolios and so much more. For example, you can see what Warren Buffet bought and sold this quarter, while also seeing how much he holds in certain stocks.
Seeing that Warren Buffet had most of his portfolio placed in Apple gave me some certainty it was a good long term buy. Besides, I also use their products, looked at some charts and believed in them as a company — so I pulled the trigger.
Since then, I’ve almost made 15% and that was only 4 months ago.
So, if you don’t know where to start, and want the easiest way to get some inspiration for investing — look at some super investors. See what they’re holding and then find some companies you can believe in as well.
What to do After you Found a Stock!
You’ve kind of found a good stock from DATAROMA, now what?
I recommend using the free online tool of Google.com to get some information about the stock’s history.
When I first decided on Apple, I looked at a few charts of the stock’s performance. Some charts some people would find irrelevant. However, I still look at them because they put me at ease.
I look at how a company’s been performing today, this week, this month, 6 months, 1 year, 5 years, and life time.
Googling the companies name followed by “stock” should bring up a chart page that looks like this where you can do the same.
Putting your cursor on the chart will show you the value of the stock on that date. Holding and dragging it to another placement will show you the difference between the days.
Looking at the max lifetime of a stock can also give you a few helpful notes, for example: How well it performed in crises.
The housing crash of 2008, the 2020 pandemic… You can get a look at how it was affected, if it bounced back, or if it’s still trying to recover.
How you Should Buy Stocks in Canada
Congratulations you found a stock you want to buy! Now, how should you even buy it?
Should you go with your bank? Not unless they charge a commission, then you’re leaving money on the table. I invest with Wealthsimple. Wealthsimple is a Canadian commission-free stock buying and trading platform.
And that’s basically the only reason I buy with them.
Thankfully their app and website are super easy to navigate. But if my bank had commission-free trading with an app that’s easy to use — I’d probably have just stuck with them. So if yours does, stick with your bank.
But mine doesn’t, and most don’t. Fees and commissions can eat you alive, so having a commission-free platform I consider essential.
Following the trend of this article, if you want simplicity, then this the easiest way to invest in Canada yourself. Download Wealthsimple and get started.
Also, you can get 2 free stocks for signing up — an offer I didn’t have when doing so.
So, how do you actually buy a stock? It’s easy.
Let’s say you’re set on Apple after reading this article and checking out Warren Buffet’s portfolio, you have the Wealthsimple app, and you’re ready to get started.
All you have to do is search for the Apple stock by typing it in the search bar and click buy.
And see that little pie chart next to the company name? That’s fractional buying. If you don’t have $142.90 to buy a singular share, you can just invest as little as $1.
And then all you have to do is click confirm.
Finally, you’re a stock investor.
Look at that, you own a stock, or fraction of a stock, or none, maybe you haven’t acted on buying anything during this article but hey that’s fine. Finish your lunch break.
By no means does this article cover everything about investing — not even close.
I just hope you can walk away from reading this knowing stock buying doesn’t have to be incredibly complicated charts. You don’t have to buy with that stockbroker over the phone, you can instead choose the easiest way to get started and grow from there if you choose to.
