I've Covered Investing for 22 Years. Here's What I Tell Every Beginner to Invest In.
Ironically, the simplest pick is also the one most likely to bring you the highest net returns.
Overview
I've been an investment professional for a long time now. I've seen it all, heard it all, and done it all... most of it at least twice. And the longer I'm in this business, the more convinced I become of something. That is, the harder you try to beat the market with more activity, the more likely it is you'll underperform. Simpler is better.
That's good news though. It means even newcomers with little to no knowledge of how the stock market works can do well enough for themselves. In fact, they may fare even better than average.
Details
But what does this mean in practical terms? A lot, but it means one thing in particular: the very first investment you should make and then stick with forever. It's not a stock at all. I suggest the Vanguard S&P 500 ETF (NYSEMKT: VOO) or the SPDR S&P 500 ETF Trust (NYSEMKT: SPY), both of which are just meant to mirror the performance of the S&P 500 Index (SNPINDEX: ^GSPC). Here's why.
Source
Originally published at www.fool.com.