Reminder to self: The market always reaches a new high after a decline, but individual stocks may not.
Here's my real life example. In 2013, I bought a "good" stock that had declined 33%. It declined another 66% before recovering. It's still down 49% from when I bought in 2013. If I had bought S&P 500 index, in 2013, I would be up 431% today.
I've learned my lesson. My strategy going forward is to invest mostly (over 95+%) in stock index ETFs to eliminate individual stock risks. Specifically, I will buy VOO and MGK, which are the S&P500 and Large Cap Growth Index ETFs.
In the future, I may do limited trading of individual stocks, but less that 5% of equity investments. It's still fun to pick a big winner occasionally, but I don't do it often enough to beat the returns from VOO or MGK.
Disclosure: I currently do not own VOO and MGK. I plan the buy some when the market declines 10% or more in the future. In the meantime, I am selling off my individual stocks as they recover, which may be never for some.🤡
For more on Strategies and Plans Ideas, check back every Monday for a new segment.
This is not financial nor investment advice. Please consult a professional advisor.
Copyright © 2025 Achievement Catalyst, LLC
No comments:
Post a Comment
Comment guidelines: My Wealth Builder will publish comments that are about the topic and do not contain inappropriate language. My Wealth Builder reserves the right to edit or delete comments for any reason which includes those that have advertising (either for a product, website, or blog), contain inappropriate language or are not about the topic.