Motley Fool Money

Office Hours: Valuing ETFs, Investing For Kids, and Creating Dividends

Apr 30, 2022
Join Robert Brokamp, an investment analyst known for his ETF expertise, as he tackles listener questions about the world of investing. He shares insights on introducing children to investing, emphasizing the wonders of compound interest. Brokamp also breaks down the art of selecting and valuing ETFs, along with strategies for managing cash in investment portfolios. Explore the importance of trading volume and the intricacies of measuring investment risks through beta. It's a treasure trove of financial wisdom!
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ADVICE

ETF Selection

  • Start by identifying the asset class you want to invest in (e.g., U.S. stocks, international stocks).
  • Use resources like Morningstar to compare ETF performance and costs, seeking those that have outperformed their peers.
INSIGHT

Share Buybacks

  • Share buybacks don't always reduce share count; companies might issue new shares simultaneously.
  • Buybacks create value when done at a discount to intrinsic value, increasing per-share metrics.
ADVICE

Roth IRA Contributions

  • Contribute to your Roth IRA even during market uncertainty; you can hold cash or short-term treasuries.
  • Roth IRA contributions can be withdrawn tax-free and penalty-free, acting as a backup emergency fund.
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