2Sem.
Take a look at the portfolios of other users here - you can't generalize, but it often turns out that the more individual stocks, the worse the performance. That should at least be a good reason for ETFs? Not to mention the time involved.
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2Sem.
@KevinC why do you have more individual stocks than ETFs if they perform better?
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2Sem.
@Max095 The questioner wanted to hear reasons for ETFs, not for individual stocks.
I'm currently still beating my benchmark (MSCI World), but I don't trust that it will always stay that way. However, I enjoy it more this way, which keeps me motivated to maintain such a high savings rate.
I'm currently still beating my benchmark (MSCI World), but I don't trust that it will always stay that way. However, I enjoy it more this way, which keeps me motivated to maintain such a high savings rate.
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2Sem.
@KevinC my thinking is always to set aside 20% or so for individual stocks and to do targeted stock-picking and not take any major surprises. Without a crystal ball you could have expected microsoft and Alphabet to outperform the market last year. Meta & Nvidia were more difficult for me to predict after the 22 break
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@KevinC I always ask myself whether ETFs and individual stocks don't have too much overlap - why buy the same stocks if they are already represented in the ETF?
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@KevinC I see it the same way. I have an individual share of just over seventy percent and my performance is far below the portfolio 😆
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2Sem.
@Litt99 It always depends on what the market has already priced in. If it was too optimistic, sooner or later there will always be a correction.
Regardless of the company. That's why I'm a big fan of buying cheap companies with low P/E ratios. It's actually working quite well now, which is why I'm currently beating my ETF. But it takes more time (time = money!) and we'll see whether I can maintain the 1.5% outperformance in the long term (my track record has to be 20 years to rule out coincidence).
One's own psychology always comes into play on the stock market. I bought Alphabet, one share for €2,300 (I think March 2021). Then it went down 30-40% at first. In hindsight, it would have been the perfect entry point - unfortunately, I didn't listen to the figures and was afraid I had missed something... well, I'm still up 35% now, but I didn't beat my benchmark for once...
Regardless of the company. That's why I'm a big fan of buying cheap companies with low P/E ratios. It's actually working quite well now, which is why I'm currently beating my ETF. But it takes more time (time = money!) and we'll see whether I can maintain the 1.5% outperformance in the long term (my track record has to be 20 years to rule out coincidence).
One's own psychology always comes into play on the stock market. I bought Alphabet, one share for €2,300 (I think March 2021). Then it went down 30-40% at first. In hindsight, it would have been the perfect entry point - unfortunately, I didn't listen to the figures and was afraid I had missed something... well, I'm still up 35% now, but I didn't beat my benchmark for once...
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2Sem.
@Eric_escapes Maybe you now have stocks that you are less convinced of than when you bought them. Why not switch them into ETFs? Then you might already have 40-60% in ETFs, which will bring a lot in the long term!
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