6Mon·

What I have often noticed here is that people advise against holding "too many" individual stocks in a portfolio, while at the same time recommending a broadly diversified ETF, which in some cases contains several thousand stocks.


#strategie
#etf
#aktien

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How are you going to manage 123 positions? That is, to inform you permanently about the companies? That takes a lot of time... It's a different story with an ETF.
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With an ETF, a "gardener" has planted 🥒 & 🌹in your "garden" and wants to participate annually in your "harvest" 😁 I prefer to plant myself and keep the harvest for myself 😁
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Because it makes a huge difference whether you have hundreds of small positions in your portfolio, which you can never keep track of and for which you have your own transaction costs, or whether you have the world market bundled in one product. Whereby it must be said that even in a world ETF only the top 100 - 200 positions are worth mentioning and the remaining 3000 positions are at most background noise.
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Absolute confusion, Daniel or Martin, ETF with 1000 shares or rather 1000 shares?👽
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The difference with an ETF is that you don't have to worry about anything. The positions of the best stocks in it are automatically increased or changed. With the individual stocks, of course, you can have as many positions as you want. But after a certain number you lose the overview of your portfolio. Then a company could suddenly get into financial difficulties and even go bankrupt and you don't even notice it or you can't react fast enough and sell it. It is possible, but it takes a lot of effort to research all companies and what is currently happening in their companies😁.
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It's not about the number of shares, but about the number of positions in the portfolio, and besides, in your example there are two strategies that differ from each other. One is stock picking and the other is participation in the growth of a certain region, industry, technology or similar.
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With ETFs, I pay people to keep an eye on those thousands of stocks full-time. With my own portfolio, I would have to do it myself.

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