Look each person will do what they want to, but for my personally I don’t think so. I just focus on a core strategy of index funds, but if people still want to do stock picking and it makes them happy then go for it, but perhaps I would suggest just keep it to a satellite strategy so less than 20% of their total investments
So, from the comments, it appears that most would not buy individual stocks, such as, Microsoft, Apple, Berkshire Hathaway, Johnson & Johnson, well you get the picture… great American companies. Alternatively, you can invest in the Bogleheads – three-fund portfolio, which is a portfolio that uses only basic asset classes — usually a domestic stock “total market” index fund, an international stock “total market” index fund and a bond “total market” index fund.
I only buy individual stocks. I never felt comfortable owning the entire market. I don’t know how to value the market as a whole. I don’t think of my investments as stocks, but as ownership interest in the underlying business and I like knowing what I own. Unfortunately, it still seems impossible to avoid bear markets and short term share price declines. However, owning individual companies helps me stay the course in bear markets because I stay rooted in the business fundamentals and don’t worry about overall market level.
I concur, Richard. While I own mutual funds in my retirement accounts, my taxable account is a portfolio of individual businesses (stocks) that I like owning. Even index funds can resemble a momentum fund (e.g. the FAANG stocks prior to 2022), and investor sentiment (i.e. large outflows in bear markets) can cause taxable distributions that I’d prefer not to incur. Individual stock ownership provides for total control over one’s portfolio, and cuts the investment expenses to essentially zero.
Look each person will do what they want to, but for my personally I don’t think so. I just focus on a core strategy of index funds, but if people still want to do stock picking and it makes them happy then go for it, but perhaps I would suggest just keep it to a satellite strategy so less than 20% of their total investments
So, from the comments, it appears that most would not buy individual stocks, such as, Microsoft, Apple, Berkshire Hathaway, Johnson & Johnson, well you get the picture… great American companies. Alternatively, you can invest in the Bogleheads – three-fund portfolio, which is a portfolio that uses only basic asset classes — usually a domestic stock “total market” index fund, an international stock “total market” index fund and a bond “total market” index fund.
To each their own but gave up thinking I’m smarter than everyone else and stick to dividend aristocrat index no-loads.
I only buy individual stocks. I never felt comfortable owning the entire market. I don’t know how to value the market as a whole. I don’t think of my investments as stocks, but as ownership interest in the underlying business and I like knowing what I own. Unfortunately, it still seems impossible to avoid bear markets and short term share price declines. However, owning individual companies helps me stay the course in bear markets because I stay rooted in the business fundamentals and don’t worry about overall market level.
I concur, Richard. While I own mutual funds in my retirement accounts, my taxable account is a portfolio of individual businesses (stocks) that I like owning. Even index funds can resemble a momentum fund (e.g. the FAANG stocks prior to 2022), and investor sentiment (i.e. large outflows in bear markets) can cause taxable distributions that I’d prefer not to incur. Individual stock ownership provides for total control over one’s portfolio, and cuts the investment expenses to essentially zero.