If you aren't making at least a 5 figure investment, then you likely would be better off just buying the index. if you aren't in a position to make that size decision, then your account is likely still in its phase where the nominal value of your deposits will likely outpace your nominal returns. Just focus on contributions until you have the capital to make meaningful bets. if a 10k position grows 10% in a year, that's only $1,000. Could you find a way in your life to make an extra $1,000 in a shorter amount of time? Likely.
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25 Comments
David @zingr · 3dEdited
I don’t think this is a hot take Unless the intent of someone not doing this is because they just want to gamble at the casino for the thrills. There’s no justifiable reason otherwise.
Twenty-five And Invested@25andinvested · 3d
You should have worded the hot take hotter. "If your a broke joke, you should just index and chill"
Michael L@sonofrely · 3d
I'll join you in the hot take. Especially because smaller capital will likely cause you to take "moonshots" on more speculative stocks thinking "oh it's not much" rather than developing a consistent investment schedule and just letting the compounding occur naturally
Michael Conroy@conroy119 · 3d
A 4 figure invesment can turn into a 5 or 6 figure investment. Or go to zero. I dont follow this logic if someone is investing for 40+ years. Everyone starts somewhere. A 10k position in an index is also only going to gain an average of 1k a year at 10%.
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