1. What is it about investing that Mansueto discovered is so confusing for the average investor?
The average investor often finds investing so confusing because there are a wide variety of investment choices. Each of the three types of investment (mutual funds, stocks, and bonds) has thousands of options for investors to choose. The risk and reward of investment vary from one type to another. The amount of information associated with different types of investment is overwhelming. As a result, the average ...view middle of the document...
The rating system which Morningstar provides informs investors about the financial strength of investment choices. This company also creates educational tools for investors on its website. There are features such as the investing classroom, analyst picks, data tools and articles which are very helpful for investors.
3. Why does Mansueto recommend investing early in life, even in high school?
Mansueto recommends investing early in life because the compounding effect is extremely amazing. Investing early also helps young people gain valuable experience which they can refer to in the future. According to him, it is not the amount of money a person invests that matters; it is getting started early, being consistent, and patiently waiting for initial investments to grow. Mansueto invested about $7,000 when he was in college and the portfolio has grown to the value of seven figures now. Therefore, he suggested even high school students should start investing as soon as possible, even with a couple dollars. The compounding effect could turn this small amount into a big amount after 30 years.