Welcome to newsletter #1.

The first of many.

This newsletter is designed to give you easy-to-digest bites of wealth building gold.

The type of gold that will lead you to changing your money management in a short amount of time.

​So, let's get moving...

DON'T LET THE LANGUAGE BLOCK YOUR BLESSINGS
Remember learning a new game when you were a kid? At first, there seem to be so many rules, and it feels a bit confusing (think Spades or Chess).

Investing can feel like that too. Hearing fancy new words or thinking you need all the information to begin, will stop you from simply starting.

However, just like any game, once you know the basic rules, it becomes much easier and more fun. You don't need to know everything to start—just the important parts.

By understanding the words used, we can feel more comfortable exploring the bigger world of investing

For example, you might hear words like "small caps", "mid caps", and "large caps". These might sound complicated, but they're just names for different types of companies you can invest in.

Think of it like sorting companies into small, medium, and large piles. Each had its own unique challenges and opportunities.

Small Caps are young companies, full of innovative ideas, enthusiasm, and a desire to make a mark.

They offer the potential for high returns, but they also come with increased volatility.

Investing in them is a lot like supporting a local indie coffee shop – there's potential for it to become the next Starbucks, but there's also a risk it might fail.

Mid Caps are companies that have outgrown their startup phase, but haven't fully exploded.

Mid cap stocks offer a balance between the potential for growth (like small caps) and stability. Investing in them is like supporting a regional chain – they've proven their concept, but there's still room for growth.

Large Caps are the established companies these are the major players in the stock market.

They're often more stable with consistent dividends, making them a favorite among those looking for less risk.

​Investing in Large Caps is like investing in a multinational brand. The growth might be slower, but they have a track record to lean on.

SEEING THIS PLAY OUT IN REAL LIFE

A great real-world example is Netflix.

Netflix started as a small DVD-by-mail service, grew into a dominant DVD rental and streaming hybrid, and is now a global giant in online entertainment.

It perfectly embodies the transition from a small-cap to mid-cap to large-cap company.

The terminology of small cap, mid cap, and large cap companies can seem intimidating, but understanding the businesses that have gone through those phases is not.

It's easy to feel lost among investment terms and choices.

Sometimes, our best guide through this maze isn't intricate analytics but the brands and services we use daily.
​

INVEST IN WHAT IS FAMILIAR

Look at brands and services that play a role in your family's life.

Companies like Netflix, which many have witnessed grow right before their eyes, exemplify the beauty of investing in the familiar.

By anchoring your investment strategies in companies you understand and trust, you pave a path of comfort, confidence, and real-world feedback.


The strategy of investing in what you know and understand was popularized by Peter Lynch, the famous mutual fund manager at Fidelity and the Magellan Fund.

He also created the Price to Earnings Growth ratio.

Peter Lynch investing advice for individual investors boiled down to 5 points

1. Buy What You Know: He suggested investors buy stocks in businesses that they understood.

2. Everyday Advantage: By observing their surroundings, individual investors could identify potentially successful companies long before Wall Street. For instance, he often spoke about noticing which stores were busiest when he went to the mall or which products his children and their friends were talked about.

3. Avoid over complicating: If you couldn’t explain the reasons for buying a stock in a few sentences, then you probably shouldn’t be buying it.

4. Don't Trust the Hype: Be cautious of stocks surrounded by hype and prioritize companies that are not on Wall Street's radar. Using your daily life can help you uncover hidden gems.

5. Fundamentals Matter: Once a potential investment is identified, take a deep dive into the company's financial health, competitive position, and growth prospects.

​Using this strategy not only makes investing more accessible to everyday individuals but also aligns with the idea that an investment should be based on knowledge and understanding, rather than gambling or following the crowd.

CLOSING THOUGHTS
The world of investing offers many routes to travel and navigate.

You have to remember though that sometimes that the journey down that route can start from everyday life like connecting what we are watching in our living rooms to what is in our portfolios.

Approaching investing from this perspective shifts the focus from the intricacies of market analytics to a more personal understanding of businesses, making investing more relatable and manageable for beginners.

​Remember narrow it down to the companies you know and then dig into the fundamentals from there.

That’s it for today. These newsletters will be coming to you every week, filled with info to help you take your money to the next level.

Have a prosperous week,

​Nadia & Nicole