okay real talk β when i first started, i was CONVINCED i was going to find the next big winner π i'd spend hours researching one company, get all excited, buy itβ¦ and then watch it do absolutely nothing while something i never even looked at took off π€·π»ββοΈ eventually it clicked: for most of us, picking individual winners is really, really hard. even the pros who do this full time mostly can't beat the market consistently. so instead of hunting for THE stock, i just buy all of them π that's basically what diversification is β spreading your money across tons of companies instead of betting it all on a few. why i love it: - one company tanking doesn't wreck your whole portfolio - you don't have to be right about which stock wins β you own the winners automatically - way less stress and way less time spent researching - one broad index ETF can give you hundreds or thousands of companies in a single buy π the tradeoff? you'll never get that "i called it!" bragging-rights moment from a single stock mooning π but honestly, i'll take sleeping well and steady long-term growth over the ego boost π this is a big reason my portfolio leans on broad index ETFs. i'm not smarter than the entire market, so i just let the market do the heavy lifting. not financial advice, always do your own research π are you a stock picker, or team diversify-and-chill? π
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Trevor Heslop@trevorheslopinvests Β· 19d
As someone with only individual stocks, I would agree and say 99.9% of people shouldn't do what I'm doing. People are not built to be successful individual stock pickers, and it's also a skill that you have to work on every single day for years in order to truly know what you're doing. It takes a lot of time to research and understand everything that's going on in the market, everything going on in each of your companies, and how everything connects. Then you have to take that information and try to best position yourself to take advantage of where the market will go next, not where it is right now. Too many people are focused on AI/Memory after stocks like $MU & $SNDK are up 1500%+ in a year... the big move has already been made, and now is the time to be looking into sectors that have gotten behind, and find companies that have continued to grow the fundamentals while the stock prices fall because everyone is focused on AI. Sector sentiment can flip in an instant, and this AI/Memory focus the entire market has right now will not last forever, it never does, but people don't understand that and fall into the FOMO/chasing hype. With that being said, if you're willing to learn and put in the amount of work that is necessary to grow and become a better investor every day, it is possible and I'm an example of that. But most people aren't willing to do the hard work and are looking for easy ways out like chasing hype or following someone else's picks without doing their own due diligence. It's not about being smarter than the entire market, it's about developing a strategy that works, doing your deep research and developing theses into companies that you believe will out-perform over the next 3-5+ years, and then being patient (which is the hardest part) while staying up to date with everything going on in your companies and updating your theses as need be. When you have a strategy, do your research, have conviction in your companies, and are able to think long-term, you too can sleep well at night while outperforming the market. But it does take a toll on you mentally, and it takes a lot of time out of your day, so if you don't love it then I'd say stick to ETF's as well. Happy to discuss this with anyone else! Cheers.
Bob @bobthompson Β· 19d
I am 80% ETFs and 20% stock picking! Itβs fun!! And there could be a moonshot!!! π dram and nbis have been fun to watch/ownβ¦.not as fun when they drop, but I am still up!!!
Ronan @ronan Β· 19dEdited
βResearchingβ stocks is far more complicated than most people make it out to be, stock picking is not an easy nor quick endeavour Management team analysis, listening to management calls, analyzing earnings on the regular, reading SEC filings, income statements, balance sheets, cash flows, ratios, peer analysis, risk analysis, growth rates, sector analysis, market and macro trends, debt handling, Cashflow management, the list goes on and on And even then, you can do all the research in the world and still lose money. If you want guaranteed market return, buy the market with an index fund
Twenty-five And Invested@25andinvested Β· 19d
You are still trying to pick stock though.
Not Financial Advice @anpc86 Β· 19d
It all depends on your risk tolerance, time horizon, but for most part people shouldn't be picking stocks for large part of their portfolio imho Small satellite positions , sure, get a base or foundation focused on index|ETF for diversification and management. Day trading generally isn't a long term career from what I hear from day traders, too stressful or more likely not going to beat.
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