Index Fund + Individual Stocks

  1. That is exactly what I do. Overall I must have 80% in ETFs and 20% in 5 stocks I picked myself. But I keep my stocks on a separate account and put only any extra money I can get not my ordinary savings.

  2. split your allocation - e.g. 90-95% index funds or broadly diversified things, and 10-5% in single stocks/idiosyncratic bets (sector bets, thematic ETFs etc.)

  3. I generally recommend you put say 2% aside in a fun account. Go wild. Pick your bets. Scratch the itch. Keep the other 98% in a normal portfolio.

  4. Well not for my kids since I don't have any, or education since if I go back I will try go for free if I can, or I won't go. I'm 22 and I have a good amount saved up for my age 46k. I'm very fortunate. To be completely honest I got into it with the intention of becoming rich lol without fully contemplating the time and dedication it takes, I do like doing it and view it as more of a hobby but I also have other hobbies I want to spend time on too and I'm wondering if I will have time for those if I dedicate myself to picking stocks. I do believe I could get very good at it and beat the market if I put my mind to it but I figure I would have to treat it like a job to be that great at it and I'm not sure I'd want to if it's going to become like a job.

  5. The truth is that’s it’s really hard to beat the index. I’ve done it once and that was during the covid rebound where my tech stocks soared like crazy. Overall id say put everything in index funds, then buy stocks for like 1% of your entire portfolio value and try to beat the other 99%. I’ve tried it for years and it’s really hard. If you’re doing well then maybe increase the partition size a bit every year and see where it goes

  6. If you have no idea what your doing stick with index funds. Voo, Vti, Vt, QQQ etc. Be careful with the growth or "disruptive" companies. In the stock market slow and steady wins the race. You won't get rich quick.

  7. I think if you don't buy too many overpriced stocks with consistent growth in earnings you are somewhat safe with individual stocks. Maybe you won't perform as good as the index but who knows. There's a chance an individual stock you would pick is going to perform really good, do you think you will regret not making a move on it? To avoid regrets my strategy is 50% index 50% good stocks.

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