A question by : I finally have enough saved up to start investing. I have only just started looking at ETF’s. I have noticed that many of the ETFs have the same stocks in them, Should I just select some ETF’s I like, look at the top ten stocks in that ETF and then just buy the individual stocks? T?
“By purchasing the ETF, you are also buying the investment expertise of fund managers that are far smarter about investing in stocks than you and I are. So, while they may be in certain stocks today, tomorrow they will sell many positions and buy new positions in other equities, while you are still sitting on the stocks you bought because they were in them yesterday. If you don’t get the same signals they did, they may have gotten out ahead of a decline that you end up eating.
They don’t always make the right choice, but if they aren’t good managers the funds replace them pretty quickly or investors move to other funds.
Unless you are a savvy investor and keep up with a LOT of economic information, probably better to find a sector you like (pharmaceuticals, health care, natural resources, whatever) and find a fund that invests in those areas and has a pretty good track record. Let them do all the work, and pay them that paltry fee to work for you so you can be great at what you know how to do and increase your income that way…”
dont ditch the trade, your tech investment triples great- take profits – if you still like it later, put some money in when its buyable again. (Just look at intel bag holding for 23 years) – dont be the guy who holds while the big money already left the company. realistic position size, to stock price and expectations – some hedge fund buys a big position in Palantir at $20 it goes to $24 – they just made 20% beating the market by 8% and probably made a few million dollars while you still wait until your $500 become $10000 and Palantir stock costs $400 (how realistic is that?)->may never happen, retraces below your buy price to $7 and here you are (it’s not the markets fault that you only can buy small positions and need some 20x to feel happy) intel just touched some levels from 97 ->price in inflation…that’s just horrible and dont kid yourself saying it’s not a loss when it’s not realized.
Investing appropriately today can save you a whole lot of stress in the nearest future.
I used to think everybody went broke during the Great Depression and other major crashes but they didn’t… Some made millions, I also thought everybody went out of business during these times but they didn’t, some went into business, there’s always depression/recession for some people and there’s always a good time for others, it’s all about perspective. Happy investing All