“Invest in what you know.” That timeless advice from legendary Fidelity Magellan Fund manager Peter Lynch has inspired millions of investors — including me.
For years, I believed investing meant needing thousands of dollars, complex spreadsheets, and nerves of steel. But then I discovered that you can start small, focus on great businesses, and build wealth steadily over time.
Start where you are — even with $10
Lynch’s philosophy is simple: Pay attention to the companies and products you use every day. That’s where your best investment ideas often begin. And why should investor’s listen? Because Lynch was able to consistently deliver results — with an average annual return of 29%.
For me, that meant Apple (NASDAQ:AAPL) (I’m writing this on a Mac), Netflix (NASDAQ:NFLX) (hello, Bridgerton) and Amazon (NASDAQ:AMZN) (there’s the doorbell now). Why these companies? Because they are businesses I understand — and that’s key to successful investing.
What is fractional investing and why should you care?
When I stared, I thought investing meant coughing up hundreds, if not thousands, of dollars. But that’s not the case, with many brokerages now offering fractional shares (1). You don’t need to buy a full share of a tech giant to get started. Fractional investing, now available across most Canadian brokerages, lets you buy a slice of a stock for as little as $10. Think of it like buying a single slice of pizza instead of the entire pie. If one share of Apple, for instance, costs $250, you can invest $10 and get 1/25 of a share. This allows you to still get a piece of a publicly traded company.
This is a significant development because it drastically lowers the barrier to entry for new investors. Turns out small, consistent steps is a powerful strategy for starting and sticking to your wealth-building journey — and exactly what The Motley Fool has encouraged for decades.
Suddenly, Lynch’s advice felt more attainable than ever.
What makes The Motley Fool approach different
At The Motley Fool, the focus has never been on day trading or chasing headlines. It’s about owning quality businesses for the long term.
When you invest even small amounts regularly — and stay invested — you tap into the power of compound growth. Whether you’re buying entire shares or fractional ones, the most important step is to start.
Motley Fool analysts regularly highlight companies with strong fundamentals, consistent earnings, and clear competitive advantages. These are often household names you already know — the very kind Peter Lynch would have called “easy to understand” businesses.
Consider ETFs if you want diversification
If picking individual stocks feels overwhelming, consider exchange-traded funds (ETFs). They let you own small pieces of hundreds of companies at once, offering instant diversification.
For example, the Vanguard S&P 500 ETF (NYSE:VOO) tracks 500 of the largest U.S. companies. As of fall 2025, it has returned roughly 12.8% annually over five years, reflecting the market’s post-pandemic growth and recent cooling period (2).
The iShares Core S&P U.S. Total Market ETF (TSX:XUU) offers even broader exposure (3) — including mid- and small-cap companies — with a five-year return near 11.9%.
And for tech enthusiasts, the BMO Nasdaq 100 ETF (TSX:ZQQ) focuses on the biggest non-financial tech names, returning about 16.5% annually over five years (4).
These aren’t stock tips — they’re examples of how you can diversify and start small. The Fool’s philosophy encourages using ETFs as a complement to your long-term stock holdings, not a substitute for research and conviction.
The 2025 investing landscape
With the Bank of Canada cutting its policy rate to 2.5% and inflation easing to around 2.6%, investors are slowly regaining confidence after two rocky years of rate hikes.
Markets may not be soaring, but for long-term investors, that’s good news. Lower valuations often mean better entry points — and time in the market still beats timing the market.
The best time to start is still today
There’s a well-known saying in the world of investing: “The best time to start was 20 years ago. The second-best time is today.” This sentiment rings especially true now that options like fractional shares and low-cost ETFs have made investing more accessible than ever before.
Whether you decide to start with $10 in fractional shares of a company whose products you love or opt for the broader diversification of an ETF, the most crucial step is simply to get started. Don’t let the misconception that you need a lot of money hold you back any longer.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Questrade: Fractional shares (1); Vanguard: Vanguard S&P500 ETF (2); BlackRock: iShares Core S&P U.S. Total Market Index ETF (3); BMO: ZNQ – BMO NASDAQ 100 Equity Index ETF (4)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.