I was chatting with someone one day and that person has strong opinion about owning just ETFs and mutual funds. Never individual stocks. I have both. My individual stocks are making more $$ right now than my Vanguard funds all together lol.
Yes ETFs and passive funds are a common strategy right now with a lot of evidence in support their benefit. Youāre likely cannibalizing your gains with your individual stocks long term even though they may look good right now
You can always sell your individual stocks and put them into ETFs. Don't miss the rocketship
Individual stocks are my play money instead of going to Vegas. Most of my real money is in ETF/Mutual Funds. You won't beat the marker especially one dominated by smart money. That being said, Something like 98% of the SPX gains where 6 companies, all of which are tech companies so if you stuck with just what you knew, you got really lucky. Don't consider that the same will hold true in 10, 20, 30 years. You need to ask yourself a fundamental question. Are you investing to grow wealth or just speculating for a quick buck?
I can see some stocks going well for the next 5-10 years unchallenged (Visa eg). They are payment network but works like lender middleman. Even though we may associated card with wealth, those who canāt pay with cash or have little in checking/savings end up using their credit card to buy food and pay bills. Each swipe charges store a fee. Then bank makes money when people canāt pay back credit card debt.
Also looking at 10-yr trend it has been upward.
Itās the same gaddem thing
I've got both, looking to go more heavily into individual stocks though (any suggestions anyone?) After seeing what my amazon equity has done over the last few years.
Yeah cause past performance predicts future returns
Lol never said I was buying amazon (I'm actually considering Microsoft, apple, and FB). Same thing could be said for the ETF approach as well