6Mon·

Good morning everyone!

After my morning routine and a look at my portfolio, I got to thinking again.

Since I try to avoid overlaps (ETF's and individual stocks),

I do not always succeed.

I am thinking about whether I should instead:

invest in the largest shares that make up the portfolio. As I assume that these will achieve a much higher return when invested individually.

What do you think about this or have you already tried it?

14 Comments

Metis@Metis

6Mon

The question is whether you have enough cash to do that. With my savings rate, that would be pretty... stupid and much less profitable than putting that amount into an AllWorld.

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Steewee@Steewee

6Mon

If I invest 1000,- each in the respective companies at the start and then run further savings plans on them, there should actually be more return than what the ETF gives me.

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Steewee@Steewee

6Mon

Moreover, these are companies that very rarely close a year without profits. But maybe I'm just thinking the wrong way.😅🤓

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Metis@Metis

6Mon

@Steewee How many companies are we talking about here? The top 10? The top 20? :D If there are too few companies in too few sectors, there will be diversification problems again.

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Steewee@Steewee

6Mon

The top 10 are the ones with the highest weighting.

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Metis@Metis

6Mon

@Steewee Hm. Aren't the top 10 currently a bit tech-heavy?

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Metis@Metis

6Mon

@Steewee And you would then have to make adjustments if something changes in the top 10 line-up in the ETF

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Steewee@Steewee

6Mon

Apple- 4,79%
NVIDIA Corp.- 4,75%
Microsoft Corp.- 4,17%
Amazon.com, Inc.- 2,54%
Meta Platforms- 1,81%
Alphabet, Inc. A- 1,46%
Alphabet, Inc. C- 1,27%
Broadcom Inc.- 1,09%
Tesla- 1,04%
Eli Lilly & Co.- 0,97%

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Steewee@Steewee

6Mon

@Metis Yes, they are companies that have become an integral part of everyday life.
Maybe the weighting is changing, but I don't think that's too bad.

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Metis@Metis

6Mon

@Steewee Then the only thing left to do is to try it out and see if you are more successful if no one else comes forward. :D

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Steewee@Steewee

6Mon

@Metis Thank you 🙏 I will tackle it in January

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Stulle 🥪@Stullen-Portfolio

6Mon

Also gives
<security:n/a:US46438G5707> (top 20 US)
<security:n/a:IE000YBGJ9I4> (top 40 US)
$EXI2 (top 50 World)

Greetings
🥪

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Do Z.@DonPadre

6Mon

If tech goes down, in this case you only have Eli Lilly to keep you afloat. The ETF only crashes to a limited extent, but your portfolio goes over the cliff.

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Steewee@Steewee

6Mon

@DonPadre Personally, I don't think tech is going to crash completely.
There will always be setbacks, but over the course of a year you will get more than the 30-30% you will get this year by holding an ETF. In addition, you should simply work with stop losses and follow through.

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