Thread 60799656

Stocks or indexes? I can't decide which to start my savings journey with. I feel like long term index is safer but returns are peanuts compared to the potential stocks have.

Pick a ratio like 30:70 or 40:60 and stick with it
Tip: Spend more on Index funds than individual stocks, you won't be a good picker

may as well ask if you should pick red/black or pick a number. one is much more likely to lose than another

>>60799656 (OP)
Started Index Funds. You're not going to beat the market unless you get extremely lucky with a good pick. Once you've accumulated a decent portfolio (100k+) maybe start messing with individuals, but it's really not worth it for the average guy

>>60799670
think im going with SWSTX

>>60799670
from a quick google are index funds
>A type of investment fund that aims to replicate the performance of a specific market index by holding all, or a representative sample, of the assets within that index.

so shit like S&P500, ftse100 etc?
>FTSE100: It's an index of the largest 100 UK companies listed on the London Stock

so instead of the average man investing in individual companies because it can be riskier you invest into these index funds aforementioned? which in safer for the average man.

(I know absolutely nothing and have only started seriously researching this recently)

>>60799656 (OP)
>buy Bitcoin and never worry about poor gains, or badly performing companies

>>60800648
how did you personally educate yourself on how bitcoin works and do you have success with it? I dont understand bitcoin or why they may be better than stocks.

>>60799656 (OP)
Think about this way:
Look up what the top stocks are rn.
Then do the same for 2010.
Then 2000.
Then 1990.
Then 1980.
And so on...
You will get the point, hopefully.

>>60800690
so finance is always top? I was looking into BNP Paribas and Deutsche bank as over time they appear to continually grow, banks seem to do okay.

>>60799656 (OP)
Buffett was a millionaire when he started stockpicking. Youre a pleb with not enough funny money. Come back when you can afford to lose half a million.

>>60800637
Buy etfs. If 4000 large and mid companies around the world go down the shitter, then were all fucked anyway. 7% a year is not that bad.

>>60800709
this makes no sense though because if you have some disposable income and aren't completely poor you can still invest and grow money relative to what you can put in, it makes complete sense for normal people to invest because otherwise your money just rots in your bank account and does nothing.

>>60800704
That chart is showing what relative % of the stock market corresponds to what sector. Finance was over 90% a century or so ago, while now it's a much smaller %. The point was to show OP how much things change. Indix funds just work because contrary to popular marketing they are not "passive", they naturally adapt to what's more/less prominent in the market so you will never get left out holding useless crap. Basically indices (mcap weighted at least) are momentum strategies.

>>60800721
Maybe large caps like Amazon, which work like index funds in itself.

>>60800717
Ive been doing a bit of ETFS but mainly quick day trading stuff and ive had decent luck so far with ones such as Bolt Project holdings and Expion360 but this was basically gambling as they were very volatile but worked well for me, currently looking into longterm etfs but I'm unsure on what specifically, Nvidia seems to do well over time.

>>60800727
interesting, thank you anon

>>60800743
No sector shit, diversify if you want to hodl longtime.

>>60800717
are etfs for short term too? Was thinking about putting in lump sum of savings next year and leave it for 2-3 years

>>60799656 (OP)
bump

Indexes and ETFs for smaller, steady contributions.
When you're less emotional about the money then maybe start doing stocks you like and moving on to selling options

>>60803982
I've put $2k into SWSTX and $1k into PRVA

Choose indexes that aren't near their ATH

for example emerging market (dividends)

>>60799656 (OP)
bump