3Sem.
I also started in April. I have gradually reduced the ETFs and am concentrating more on individual shares. Please don't hate me, ETFs are for millionaires. I have stopped savings plans and invest on crash days like August 5 and sometime in November. That works much better for me.
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@impuff then let's go, tonight it was November 🙃😉
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3Sem.
@impuff Why exactly are ETFs for millionaires? Laymen can hardly beat the market in the long term with individual stocks and on top of that with very little financial means.
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As a layman, you have little capital to start with, that's true. The more capital you have, the more broadly you should diversify it. But it is also true that the more broadly diversified you are, the lower the return. I have also observed this with my portfolio. The 30 percent in individual shares performed much better than the 70 percent in ETFs. That's why I reallocated. I simply have an affinity for risk and can withstand fluctuations. At some point, of course, I get nervous and go back into ETFs.
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@impuff However, you are "missing out" on compound interest returns, which global ETFs in particular can generate over their recommended holding period of +15 years. Can you always beat the market consistently over 15 years?
Btw, you shouldn't take too much risk on a small amount of capital, otherwise the little money will be gone immediately if you make the wrong choice of individual securities.
Btw, you shouldn't take too much risk on a small amount of capital, otherwise the little money will be gone immediately if you make the wrong choice of individual securities.
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3Sem.
@impuff Addendum: Millionaires in particular have enough cash to be able to diversify sufficiently across individual stocks.
As a private investor with an average or lower income, you can diversify significantly less via individual stocks, so that it is also worthwhile on the return side and the portfolio still remains stable in times of crisis.
As a private investor with an average or lower income, you can diversify significantly less via individual stocks, so that it is also worthwhile on the return side and the portfolio still remains stable in times of crisis.
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3Sem.
@Metis The 'little money gone' is not the private investor's problem. The normal private investor can work for x months/year and then recoup the loss. A millionaire can't, because that would be terrible. They have different risk profiles. I don't want to beat the market or keep my portfolio stable in times of crisis (that's not my motive), I want to bet my fortune on a few stocks. Just like the private investor who bought Apple 20 years ago. I want to be like that
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3Sem.
@impuff However, the normal private investor with a €200 savings rate is much more deterred from investing at all after a total loss of the little savings than a millionaire who can bet his millions on 50 to 100 securities with successful returns and can cope if some of them don't work out. And millionaires also have ongoing sources of income ;)
Just ask those who were burned by the burst dotcom bubble. For many of them, the stock market was just the devil's play, nothing more. Very few of them came back years later.
Just ask those who were burned by the burst dotcom bubble. For many of them, the stock market was just the devil's play, nothing more. Very few of them came back years later.
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3Sem.
@Metis I do ☺️👍 May I follow you?
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3Sem.
@impuff You may follow me :D
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3Sem.
@impuff if ETFs are for millionaires, then leverage certificates are perfect for small investors I guess?🤣
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