How to buy a stock

Especially if you just have a little money to get started

I think the sim­ple step of how to buy a stock can be a bit over­whelm­ing if you’ve nev­er done it before. New com­pa­nies are try­ing to make it eas­i­er to get start­ed using tech­nol­o­gy to make the pur­chase more approach­able. Stockpile is sim­ply one of the best way to get start­ed build­ing wealth because you can buy shares in dol­lar amounts with­out wor­ry­ing about hav­ing to pur­chase whole shares.

It’s not for you if you want to buy & sell shares, oth­er­wise known as trad­ing. But I believe most peo­ple who don’t know much about invest­ing con­fuse what they see on the TV about peo­ple buy­ing and sell­ing shares to make mon­ey by active trad­ing, with build­ing long term wealth. Building wealth involves the accu­mu­la­tion of long-term sav­ings in invest­ments that grow over time.  You don’t have to buy and sell those invest­ments in order to build wealth. You just have to do a good job accu­mu­lat­ing, and then let div­i­dend rein­vest­ing and com­pound­ing work to your advan­tage.

Other companies that make investing approachable

Another of my favorites is Stash, but they’re more about ETF’s and not the div­i­dend pay­ing stocks that are so near and dear to my heart.

Robinhood is what a tra­di­tion­al bro­ker­age would be if it were to start from scratch. But, Robinhood is still over­whelm­ing. Buying a share, sounds scary.

How to buy a stock if you’ve never invested before

Wouldn’t it be eas­i­er to buy $100 of stock, rather than some num­ber of shares? Yeah. Doesn’t sound much eas­i­er, but if you’ve nev­er invest­ed before, or if that $100 real­ly means some­thing, it can be enough to pre­vent one from get­ting start­ed.

That’s where Stockpile comes in.

I’ve just come across these guys, and as far as I can tell, they’re to Computershare, Wells Fargo, BNY Mellon, or Broadridge Financial Services as Robinhood is to Fidelity or E*Trade or oth­er online bro­ker­ages.

With Stockpile (and Computershare, et. al) you don’t have to buy as spe­cif­ic num­ber of shares. You can sim­ply buy a dol­lar val­ue of stock. So, if you have $100 to invest, you don’t have to wor­ry about the price of a share or buy­ing a whole num­ber of shares. With Stockpile you can sim­ply buy $100 of stock. Cool, right? Yeah, and real­ly impor­tant for peo­ple just get­ting start­ed. So impor­tant that I ded­i­cate the whole fourth part of my book walk­ing through a step-by-step plan for mak­ing your first invest­ment.

I’ve got­ten in touch with Stockpile and they tell me they can rein­vest div­i­dends, you just have to email them to turn the fea­ture on. I’ll take it! Go ahead, have a look. I’ll be sure to try them out myself, and report back once I do.

If you do try them out, why not let us know what you bought in the com­ments?

Please note: I reserve the right to delete comments that are offensive or off-topic.

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