Originally Posted By: javacontour
I don't worry about individual equities as most of my stocks are owned in the form of index funds.
Index funds beat 80% of managed portfolios and you pay far smaller fees to own them.
This is often true. Except if you manage your own portfolio. Then you only have to buy yourself a steak dinner if you do well.
I'd say that probably 80% of my portfolio is in index funds as well. Much of it is in a Vanguard fund, which carries a super-low 0.05% expense ratio. That said, I do actively manage 100% of it (I don't have a broker), and the remaining 20% is invested in individual equities. I did buy some Apple stock back in December of 2011, before I owned any Apple products. Since I bought the stock, I thought I might actually try one of the products to see what it's all about. Before I knew it, we own FOUR Apple products, and will likely add a fifth this Christmas.
It is noteworthy that Apple has surpassed ExxonMobil so fast, and continues to grow at such a rapid pace. Other companies have grown as fast and have fallen off into oblivion. Hard to say if that will happen to Apple or not. Its success is driven primarily on folks' desire to own one of their products. If Apple ceases to create that desire in the market place, much of their market capitalization will dry up, just as with any other company.
I don't worry about individual equities as most of my stocks are owned in the form of index funds.
Index funds beat 80% of managed portfolios and you pay far smaller fees to own them.
This is often true. Except if you manage your own portfolio. Then you only have to buy yourself a steak dinner if you do well.
I'd say that probably 80% of my portfolio is in index funds as well. Much of it is in a Vanguard fund, which carries a super-low 0.05% expense ratio. That said, I do actively manage 100% of it (I don't have a broker), and the remaining 20% is invested in individual equities. I did buy some Apple stock back in December of 2011, before I owned any Apple products. Since I bought the stock, I thought I might actually try one of the products to see what it's all about. Before I knew it, we own FOUR Apple products, and will likely add a fifth this Christmas.
It is noteworthy that Apple has surpassed ExxonMobil so fast, and continues to grow at such a rapid pace. Other companies have grown as fast and have fallen off into oblivion. Hard to say if that will happen to Apple or not. Its success is driven primarily on folks' desire to own one of their products. If Apple ceases to create that desire in the market place, much of their market capitalization will dry up, just as with any other company.