People often ask me about my approach to investing the money left over after expenses at the end of the year. This short page serves as a reference to avoid repeating the same explanation multiple times.
The decision on the allocation of cash, bonds, and stocks is a personal one. We choose to keep enough cash to cover about a year of living expenses and invest the rest in stocks.
To buy equity in a public company, you need a broker. I use Interactive Brokers, the first online broker and a trusted institution. There are other options available. If you use the provided link, both of us will get a referral bonus.
We primarily invest in two things: Berkshire Hathaway (BRKB) and an S&P 500 ETF. These represent diverse businesses selling products and services globally. I focus on investments where I am confident enough to allocate a significant portion of my net worth. Most of my risk-taking is with my time, not money.
We prefer to make monthly purchases to avoid attempting to time the market.