How Ted Bauman Thinks People Should Invest In The S&P 500

 

The Bauman Letter is a monthly financial publication put out by Banyan Hill Publishing. Its editor is Ted Bauman and his goal with this publication is to help people gain control of their financial destiny. He shows readers how to protect their personal freedom through various strategies. These strategies help people build their wealth while protecting their privacy from the government and others who want to exploit them. He also edits two other publications which are Alpha Stock Alert and Plan B Club.

Ted Bauman is from the United States but moved to South Africa for almost 30 years. He has undergraduate degrees in history and economics he earned by attending the University of Cape Town. He spent the next 25 years working mostly as a fund manager for a number of South Africa nonprofits. Mainly he worked for nonprofits that built low-cost homes for people that otherwise couldn’t afford one. Later in his career he joined Habitat for Humanity International where he was the director of international housing. Since 2013 he has worked full time as a researcher, writer, and investor.

As he is an economist rather than a stock analyst, Ted Bauman says that he offers his readers a broader perspective when it comes to market developments and investing. He shares with his readers his research which contains unique insights that they can use to both grow their wealth as well as protect it.

In a recent article, Ted Bauman shares a story about talking about what the stock market is to his young daughter. He says he, like most people, uses the S&P 500 as a description of what the stock market is. Each company in the S&P 500 is weighted by how much their shares are worth. Bigger companies, like Amazon and Apple, Inc., stocks have a bigger influence on how much the S&P 500 goes up and down by every day as compared to one of the smaller companies that make up this index.

The problem with just investing in the total S&P 500 then, Ted Bauman says, is that too much of your money is tied up in the big companies and not enough in the smaller ones. This can be a huge problem if a company like Amazon or Apple stumble and their stocks collapse. To solve this problem he recommends investing some your money in reserve cap-weighted funds which hold more of the smaller companies and less of the biggest ones.

Visit: https://ideamensch.com/ted-bauman/

 

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