There's one piece of investing advice that can help your portfolio weather any storm.
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00:00Hey there investors, I am Dan Klein, co-editor of The Street along with my friend Todd Campbell.
00:05I wanted to give the best piece of advice for investing that nobody ever gave me.
00:10Now, this isn't because my parents were not good parents, it's not because my teachers
00:14were not good teachers, it's because people didn't think that way.
00:17And the number one thing you should do as a parent is tell your kids to invest early.
00:21Frankly, make your kids invest early.
00:24So my son, when he got his first job working at a Wendy's, I made him take a percentage
00:29of his income every week and invested in the stock market.
00:32What did he buy?
00:33He bought companies he understood.
00:35He owned shares of Microsoft, he owned shares of Target, he owned shares of Starbucks, he
00:39probably owned shares of Walt Disney, I'm not sure.
00:42But it is things he understands, but more importantly it reinforces that habit.
00:46And if you put very small amounts of money into the market and then let it sit for 40
00:51years, the return on that is going to be exponential.
00:55So if you look at a 9% average return and you're buying blue chip, really safe companies,
01:00don't let your kid chase the latest fad.
01:03Have them buy the companies that are part of their everyday world.
01:06Your kid will get to 45, 50, 60 and be rich.
01:09More importantly, your kid will get to 30 and have the down payment to buy a house.
01:13So the hardest time to save is early on when you make the least money.
01:17But if you get them to save while they still live in your house, while they don't have any
01:20expenses, that gets that habit, gets it going.
01:24There is more great advice at TheStreet.com.
01:26I am Dan Klein.
01:27Come see me there.