What @San_Francisco is hinting at is: what is your business case for your single stock holding, why will they beat the market (with actual numbers, remember you’re trying to be smarter than people who do that job full time).
Second given the low amounts, that’s a lot of transaction. Personally I’d just put 10k in vwrl and be done with it (it’s a fairly small sum). Depending on your income (and your marginal tax rate) consider putting it in a low cost 3a instead.
By the way, I think this is a common pitfall. Unless you hold 50 random stocks, single stock holdings are not what is usually considered diversified (at least compared to ETFs that track an entire market).
First, thank you all for your answers, it’s very interesting.
Yes, I think they will grow as big as other manufacturers but combined, not sure for long term. I think, in 5-10 years, concurrence will be there with good products.
So, i’ve invested because I think they can be more profitable but I will sell them later or sooner if the hype is going down. It was more a low-term investment.
Imagine if I have 1’000’000 (take big directly ;-)) :
I would invest in max 5 stocks. Apple (love products, think they can grow lot more etc, dividend is not bad etc.). VWRL and 3 more but dont’know now which ones.
Just buy VWRL :
I’ve read this but, I must admit, I prefere to take a little bit more risk to have better results. I explain :
As I am checking often the money on my trading account, I prefer taking risk with, for example, Apple for a mid-long terme instead of vwrl but, as I said previously,vwrl is on my short list.
Partly. That was to reasoning behind my question above (on what to do with more money):
These 5 are what I would call consider candidates for a serious „investment“ and „portfolio“.
The rest is just „fun money“ or speculation.
Yes, your „serious“ portfolio could also consist of just a few select stocks.
Nothing wrong with that.
Just don‘t select and buy them based on gut feeling alone.
(I also would suggest to be cautious against your gut feeling)
Totally agree with the above statement, you can “love the brand” and at the same time “hate the stock”. Apple, Airbnb, Disney, Tesla etc. all have a great products that millions of people love and buy. We can also assume that their immediate future looks alright. However, this is something other investors (the market) also know and that’s why it’s already priced into the stock. Alas, it’s not very easy to beat the market.
Also consider that in the end the most diversified investment you can make is probably just buying only 10k of VWRL.
It might sound counter-intuitive but adding a separate investment in additional single stocks (especially large caps like AAPL for example) will only reduce the diversification of your portfolio.
I agree with others here about investing the lot in a cheap diversified fund. If you want to diversify yourself, I suggest starting with replicating stock indexes. But because you pay a brokerage fee for each position, there’s only a cost advantage over paying an index ETF if you invest a fair amount of capital in each stock (min. 5k, ideally 10k per stock).