Andy Egwim explains core-satellite investing: put most of your money in index funds, then use 20% for individual stocks you've researched. Regular automatic investing builds the habit so you don't have to rely on willpower.
But for someone else might decide, you know what, I don't want to do that. I want to just have the money going monthly. And that's fine because that way it helps you to build a habit. Okay? It helps you to build a habit and it makes it, it makes discipline unnecessary. You don't have to be disciplined. If you set it up and it's investing automatically, the same thing for your saving, you can do it automatically. Okay? So basically, I think it all depends on your goals. What's your investment goals, what's your strategy? I've got people in my master class or people have attended the four weeks academy. They wouldn't embed their 20k in an index fund. They might invest, let's say 15,000, but the other 5,000, they want to use it to invest in individual companies that they've analyzed. They've looked at the income statement, they've looked at the balance sheet, they looked at the cash flow statement. These are things that we teach in the four weeks. And they think, oh, they've looked at the story of the company and they looked at the numbers. I think this is a really healthy company. And they might want to be investing 20% of their total investment funds into individual companies. So that's what we call the core satellite approach.
