Is this a good, safe long term investment strategy in stocks?
Top tech companies like Apple, Google, Facebook, Amazon, Netflix are highly likely to stay here for long time as they have very good tech, are constantly innovating and have lots of money needed to innovate and to take some hit. Do you think it is a good, safe long term investment strategy to equally invest in these companies?
Amazon , Google maybe, netflix maybe not since they are cock block by copy right owner (Disney..Etc) and coming up with original content is hard. Fb might be as ubiquitous as Google, but they really need to advertise their auxiliary service better I have no idea I can order food with fb until today lol
Look at what would have happened had you done the same in 2001-2002.
those are all extremely correlated. it's like investing in one stock. yahoo seemed unstoppable at some point too. compare these to a real stable stock like coke, which can't be displaced by competing tech.
Individual stock is always riskier. Diversify and invest in index/etfs: Examples: IYW, VHT, SPYG, IHDQ, VEU
Don't invest all in one sector. If you're thinking about this as a strategy for most of your savings, Wealthsimple might be for you. If you're just playing around in Robinhood then have fun.
What does Netflix innovate?
If you are in tech, majority of your portfolio should be non-tech. Lower correlation.
Index funds - low fees and make 10% / year. Double your money every 10 years.
I think gaming sector would rebound. Farmville 2.7 with block chain technology is going to be first trillion dollar game.