3D·

I made a bad mistake and will regret it 📉 ☹️

Instead of reinvesting the distributions from my awesome ETFs back into their original ETF, I have set up savings plans on the following shares: 🤯

$BNTX (+1.63%)

$MU (-0.35%)

I should actually know better. 🥺

Because all these shares, as well as all other shares that exist, are doomed in the long term. I can only hope for short-term gains and should then have the courage to switch back into a functioning system (ETF). 😭

Stock selection: Hippo Hippo research 🦛

26Positions

3.19%

10 Comments

GHF@GHF

If all equities are doomed, so is every ETF 😉

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Amundi🦛@_Hippo_

@GHF Your statement assumes that all shares fall to zero at the same time. This is highly unlikely to happen. However, it is true that some shares perform better than others and this happens over different periods of time. Until, for example, a company is bought out, goes bankrupt or simply regresses to the mean. With a broadly diversified index ETF, you can take advantage of the weaknesses of shares, as an ETF holds shares in proportion to their market capitalization and buys and sells shares at regular intervals to reflect this weighting principle as accurately as possible. In other words, an ETF is always a snapshot of the winners when viewed from above. 🥹

Take a look here @BockaufDividenden you would also have to rebalance regularly (trading fees), would have more than one tax disadvantage and would have to invest a lot of time

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Jürgen S@Snoopyjs

@_Hippo_ and another nice click-bait 😒.... "Because all these stocks, as well as all the others that exist, are doomed in the long term" with such sweeping statements @GHF is right ... so you mean an index ETF, where sooner or later e.g. the top 10 go bankrupt, can withstand this without price losses because of the weighting principle. Just look back a few months and see how $IWDA, $CSPX, for example, have behaved. Btw...how can you set up 10 savings plans if you don't believe in the companies anyway 🤦‍♂️....maybe day trading instead of investing would be more for you

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Amundi🦛@_Hippo_

@Snoopyjs Yes, that's the way it is. The top 10 of the best-known and oldest indices have already changed completely several times since they were launched and yes, every now and then risk has to manifest itself unexpectedly, but in the long term you will most likely end up on the winning side with an index ETF on the S&P500 or MSCI World, for example...

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