Is it a good investment technique to buy same big company stocks every month?

Epic / Eng
Nandy1980

Epic Eng

PRE
Intel
Nandy1980more
May 24, 2018 17 Comments

Being a private company, I don't get any stock options. All the income I get is in cash. As I hear in Blind that a lot of folks get RSUs and earn a lot from them, I was thinking of ways I can try to catch up wrt TC. Today, I invest any left over money in the beginning of every month into Vanguard ETFs.

Is this a good/bad investment idea: if i plan to invest 10-15% out of my family income each year into stocks? As I never invested in stocks before, if I take 10 or so big company stocks (FAANG, TSLA, JNJ etc.), and equally split that amount each month between them without trying to time the market ?

If the idea itself is bad, please correct me. If the idea is good but the stock choices are bad, please propose the right ones.

Thanks!

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TOP 17 Comments
  • Google Techmeme
    Dont fuck around with your money thinking you are investing. If you want to invest in large caps, just open an account with Vanguard or Charles Schwab and buy their large cap ETF. Sit back and relax. Let the market run for years and keep adding money and diversify your investments with time as you learn more about investing.
    May 24, 2018 6
    • Google Techmeme
      Buy large cap stable international funds. Maybe put some money in commodities, some in reit, some in municipal bonds. There is really no magic bullet here. These are tried and tested strategies. Just pick one approach and be disciplined. Keep some cash handy for declining times so you can buy bargain prices
      May 24, 2018
    • Facebook hypome
      The suggestion you made on your post is the opposite of diversifying. What are your actual goals? Concentrating on a few stocks makes it sound like you're trying for higher returns than just diversifying.
      May 24, 2018
    • Epic / Eng
      Nandy1980

      Epic Eng

      PRE
      Intel
      Nandy1980more
      OP
      Right now, I don't take any risk at all. So I was thinking if it will be beneficial if i can take 15-20% of total income and diversify them into something with high returns. So was just looking for where to start..
      May 24, 2018
    • Amazon / Eng L6SDE
      You have to understand that the fact that our RSUs are usually worth more than their grant price at the time of vesting is only a happy accident. They could also go down, or we could leave before the vest. Invest prudently.
      May 24, 2018
    • Amazon / Eng 👶lol
      I sell all my RSUs on vest and immediately diversify them to vanguard funds.
      May 25, 2018
  • Facebook public
    Buy companies you believe to have a long term competitive advantage and make sure you have a long time horizon. Generally folks say you cannot time the market but of course you can or at least try so make an educated investment and let it sit. If it drops in price a lot and nothing else has changed then buy more on sale. Personally I love buying companies that get negative press but with solid fundamentals. Been winning on thise for 30 some years. Good luck!
    May 24, 2018 0
  • Facebook hypome
    Why Tesla? Why any of the ones you picked? What are your valuations on each of them? What's your selling number for each market cap?

    Picking individual stocks much more effort than just indexing. Indexing is faith that the entire market will go up overall. High concentration means you'll have much more volatility (bigger and faster price swings).

    I would go online for valuation lessons if you're deciding to pick stocks. aswath damodaran just uploaded a series of videos on his FANG evaluations. I'm starting his videos on valuations soon.
    May 24, 2018 1
    • Epic / Eng
      Nandy1980

      Epic Eng

      PRE
      Intel
      Nandy1980more
      OP
      Thanks for the suggestion. I will start here, and try to research on understanding valuations.
      May 24, 2018
  • Qualtrics huuciciv
    Buy cheap stocks like APRN or HMNY, they have much more chance for big returns than the ones you mentioned.
    May 24, 2018 1
    • Tibco software / Eng
      EdCI13

      Tibco software Eng

      PRE
      Amazon
      EdCI13more
      Sorry I'm a victim of buying HMNY. Bought it for $10 when it dropped from $30. I thought I made awesome investment after reading lot of shit from analyst. Now HMNY trading at $0.50. I will say do your own research and buy. Safer bet is to buy big tech giant that you think will not die soon. Good luck
      May 24, 2018
  • Arista Networks / Eng ps5
    Idk. I buy specific tech company stocks and ive been making mad gains
    May 24, 2018 1
    • Microsoft Sct909
      Cuz tech has been extremely bullish so far - past doesn’t predict future. With that said, I do it too, but index funds is still a majority of my portfolio
      May 24, 2018
  • Microsoft qbys57
    VTSAX bro!
    May 25, 2018 0
  • Microsoft sumit
    Buy Netflix,amazon, Microsoft, nvidia. They keep going up. But there is a risk involved always. Past performance is never a guarantee for future performance.
    May 24, 2018 0
  • Amazon gueyvd
    If you really want to invest in tech like that just buy a tech etc like fdn
    May 24, 2018 0

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