I Stopped Buying Stocks and Went ALL IN on ETFs. Here's Why.
ฝัง
- เผยแพร่เมื่อ 5 ก.พ. 2025
- 🔍 The Shift from Single Stocks to ETFs: Discover my reasons for transitioning from investing in single stocks like Apple and Tesla to focusing on ETFs and index funds such as VTI and QQQ.
Grab your copy of The Simple Path to Wealth by JL Collins: amzn.to/48TB6cs
Join me on Patreon: / bobsharpe
STUFF I RECOMMEND!*
Personal Finance
🤑 Webull App - get FREE stocks when you get started (limited time) ► sweetlifesucces...
📊 The Ultimate Transaction Register - track your budget the real way ► averagetoamazi...
💰 Seeking Alpha - get the best research tools to stay ahead in your stock and ETF research. Receive 50% off on a Premium Membership ► sweetlifesucces...
💰 Track Your Dividends ► sweetlifesucce...
💳 Apply for an American Express Card with this link. We can both get rewarded if you're approved ► sweetlifesucces...
Saving Money & Grabbing Deals
💰 Get Legitimate Cash Back at Gas Stations, Restaurants, and More with Upside App (app is free to use!!) ► sweetlifesucces...
📱Get a Discount on Mint Mobile and Pay Less for your Cell Phone Bill (I Save $2,000 a year!!) ► sweetlifesucces...
🥬Get an Exclusive Deal on HelloFresh, include a FREE gift ► sweetlifesucces...
I STOPPED Investing in Single Stocks. Here's Why:
💡 Historical Market Analysis: We examine the performance of top companies in the S&P 500 over the past two decades, highlighting the risks associated with investing in individual stocks and the dynamic nature of the market.
📊 Case Study of Market Changes: Using specific examples like General Electric and Boeing, I demonstrate how market leaders can change over time, affecting investment outcomes.
📈 The Benefits of Index Funds: Learn about the self-cleansing nature of index funds and how they automatically adjust to market changes, providing a more stable and diversified investment option.
💰 Portfolio Performance Comparison: I share a comparative analysis of investing in single stocks versus index funds over a 20-year period, showcasing the growth potential of each strategy.
🚀 Building Financial Independence: Understand how a consistent investment approach in index funds can pave the way to financial independence and a robust portfolio.
🔗 Educational Resources & Tools: The tools I show in this video include:
portfoliovisual...
abcnews.go.com...
👉 Subscribe for More: Stay tuned for more videos on financial strategies, portfolio building, and achieving financial success.
🗨️ Your Turn: I invite you to share your investment experiences and strategies in the comments. Let's learn and grow together!
#financialindependence #financialeducation #stocks
*Disclaimer: Bob is not a financial advisor. Please contact a professional financial advisor prior to making any decisions. Some of the links and other products that appear on this video are from companies in which Bob Sharpe earns an affiliate commission or referral bonus. Bob Sharpe is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.
Join me on Patreon for more exclusive content: www.patreon.com/BobSharpe
Great video! I started DCA in Sept 2021 into VOO and now added VUG/QQQM/SCHD and currently up 50+% in the first two years. I ONLY 100% invest in ETFs and never individual stocks. Amazing growth!
Vug qqqm 😮😢😢😢😢
I lost a lot chasing single stocks. VTI made me my money back with growth and dividends in a year.
Splg is what i invest in over voo. Mainly because the price entry is lower, and it's just easier to see the money growing
That’s perfectly fine - both are super low cost and track the SP 500 index.
One of the greatest and clear explanation for ETF vs individual stocks. Thanks good value for investors!
I’m 26, $300K net worth. Been saving 50% of my salary, investing in stocks & living below my means. My goal this year is to be more serious and consistent with my investments for long term. Starting to save for a house down payment. I want to invest more this year but I'm not sure on how to mitigate risk
Hola que tal feliz tarde yo tengo 30 años y me gustaría aprender a invertir como usted
Top notch education Bob. 🙏. This is exactly what I’ve concluded with all mine and my kid’s portfolios over the last year. One stock, TSLA, small % compared to our ETF holdings. If TSLA hits, fantastic, if it doesn’t, it doesn’t destroy our net worth. Never can tell where TSLA will be in 40 years as my kids are turning 60. And I don’t care. They will be ETF millionaires.
Great video, Bob, I am right there behind you. Getting really close to solely focusing on ETFs, but enjoy a small portfolio of 7-10 stocks for growth.
Good stuff!
This should be taught at every high school
WE ARE
@@Staffmeister154 We aren't, at least not a majority of us are
🔥
They want you broke and working until 70, they do not want people financially free enjoying themselves and being free with their time
Because everyone will dropout get a GED work and McDonald's and Wendy's live at home for 15 years and retire at 30 take out an SBLOC and never work or pay taxes ever again
ETFs are a great way to invest...just be careful of fund overlap where you have multiple funds that invest heavily in the same stocks. For example, the top holdings in VOO and QQQ are virtually the same.
But the percentages of those holdings are vastly different
Plus why is that a problem if they r both self cleansing.
When I started investing about 4 years ago I watched a video advocating ETFs are the core of an investment portfolio. I did not follow that advice and have the losses in individual stocks to prove it. Honestly, I invested in the low-quality, small caps thinking I would see big gains, but just the opposite. Plus, I invested in ARK Invest Thematic ETFs. Another No-No. So, I agree with the quality (like those mentioned in the video) ETF focus now, but stay away from most Thematic ETFs, Penny Stocks and Small Caps. I'm trying to get to 70% ETF cores with the remaining 30% on quality large caps stocks for growth and dividends. Great Video!
This is great reminder of portfolio allocation . See if you can do a sheet with circle graph to see the ratio.
Great video. Thanks for sharing these valuable insights.
Glad you enjoyed it!
Excellent video,made me see things in a different way.
Currently have 3 portfolios
Brokerage SCHD/VGT/VOO
Roth IRA SCHD/SCHG
T. Roth. XLK/DGRW
current value $775 k and growing
Which one will you choose between dgro vs splg for dca long term investment?
Can you make a video about factor ETFs? What do you think about those momentum, value, quality etc factors?
I've done well chasing stocks.... and it's drained my soul keeping up with! I can't do it anymore. I will keep 10-20 of them, and just DCA the next couple decades into my favorite ETFs.
Easier to sleep at night
I’m curious whether you consider the price of an index when thinking about this issue. Because the S&P 500 closed at an all-time high or something close to it today, buying into an S&P 500 ETF seems far less prudent at this point in time than if you were to buy into that same ETF when the relative P/E ratio was lower.
This is one of the problems I have with taking a very simplistic view in favor of ETF oriented investing. Individual stocks are at all times either overvalued, fairly valued or undervalued. This is equally true of index-oriented ETFs. Because wise investors invest new capital only when share prices are in the fairly valued or undervalued range (i.e., when “others are fearful”), shouldn’t wise investors also be mindful of the relative value of the underlying index when buying into an ETF?
With the markets at all-time highs, I would prefer to buy shares in an undervalued and solid wide moat company than to buy shares in an ETF when the underlying index is moderately if not highly overvalued.
Buy low sell high... totally agree 👍
Hello Bob - a nice - honest and to the point - investment style that you recommend / I’m from Canada 🇨🇦 , so my choices are a bit different - along with the tax laws - but my preferences are geared towards - sector specific - ETFs (cover call) with a 50% upside for market appreciation - sometimes the dividends will fluctuate, but the average yield is 13% - paid monthly - that gives me a great compounding opportunity /
The 2 sectors I chose are - Financials and Utilities… / neither fund goes beyond 15 holdings…. So their approach is quite focused…
The brand I am using is called - Hamilton ETFs
Yes, AVGE, FFOG, FDIF and HERD. You pick the allocation based on the investment thesis of each of these ETFs.
Great vid. Like they way you broke it down.
Thanks Big Bob
I appreciate your videos, I’ve learned quite some bits from your videos being a beginner investor at 20
I have one stock that is MSFT. The rest all ETF'S.
Great video, but by selecting VOO with its inception date in 2010, you limited your analysis to 2011 forward.
But I also have a doubt.. At the end of day- VOO/SPDR/Russell, etc they are one single company and they could easily go bank rupt? How to mitigate that? I get a feeling they could sell us some sense of security and pull the rug once for all and go in to Administration and liquidation. Who backs VOO/VTI/SPY etc?
VOO/VTI/and SPY are not the company. They are the ticker codes for an ETF. VOO and VTI for example are managed by Vanguard which is one of the biggest investment companies in the US for decades. No way it will go bankrupt not even in my dreams. So you are pretty safe.
Great video for etf bro
JEPQ and SPYI are a couple of my favorites.
I truly enjoy these!
Thank you!
You also pay a lot in taxes by buying and selling the stocks yourself. Dont need to worry about that in ETFs.
What about stocks like Visa and MasterCard… Those guys aren’t going anywhere and I would really like to flip it around for all the years they tried to kill me with finance charges! Lol great points in your video love your practical straightforward information.😉
Those are solid long term picks! What you can do is split individual stocks with ETFs. The % will vary based on each person’s comfort level.
What are 4 best etfs to start investing in? My 401k has Fidelity 500
What is your opinion of a core and satelite portfolio approach?
great video was thinking the same thing before, you made a lot of sense.
Glad it was helpful!
Great video. Looking forward to an update on the $5 a day challenge
Coming soon!
Coca Cola not going anywhere or Pepsi ,tech is more volatile in that perspective
Great insight! Thanks.
Question, are you still holding on to your JEPI ? And are you considering Jepq? Thanks!
How do you feel about VYM too?
me too!! 95% etfs
Fantistic video. Thank you!
Great video as usual
Appreciate that
Nobody invested in the years back because there was not information about how to invest as easy as it's today..I think 🤔
Yeah good point. It was hard to get in and you had to have a lot of money to get started. AND, you had to pay commissions every time you traded back then.
@@BobSharpe Correct Correct 👍🏻
just to edit:
when you compared GE to VOO, it only went back to 2011 because that's when VOO became a thing. you'd have to use an older share class to go back to 2001
@Bob Sharpe can you do an update vid on SHIB?
My primary investment my 401k, 10% of income along with company match. On the side I invest on Robinhood, have about 21k with approx 25 shares of Amazon, 25 shares of Google, 20 shares of Amazon, 15 shares of Apple, 7 shares of VOO. Im considering selling all the individual stocks and going all in on VOO, is this a bad idea?
Everyone has different investing strategy. Index ETF fund is fine if you do not want to worry about picking stocks. I like evaluating stocks so my strategy is to have index funds as the portfolio core supplemented with individual stocks. Also dividend yield for index fund like SPY is only around 1.4%. Perfect for younger investors (tax efficiency) but not good for people who are about to retire. They also need some bonds or high yield stocks to generate income. So it is not one strategy fits all. It will be different for everyone depending on your age, risk tolerance etc
The importance of consistent - stable - tax efficient cash flow, is of high priority for pensioners…👍
"Perfect for younger investors (tax efficiency) but not good for people who are about to retire"
That depends on if you are using a brokerage account that is taxable for your dividend investing or any number of tax favored accounts. It is not this or that as you imply.
No idea why this type of thinking isn’t taught in Hs but that’s Merica in general.. we have been 33% dividend growth etfs 33% cover call etfs and 33% into companies like arbor realty, O, stag, Main Street. For years now. I don’t ever see us changing that strategy
What high yield savings account would you recommend
UFB Direct
Whats the name of the Software you use for Backtesting?
That is found on portfoliovisualizer.com
Its the safer alternative specially for beginners. imo.
Watching this two months after you posted the video and Apple is not doing so good, and I don't see any growth in the future.
I invest in JEPQ
25 with 900k portfolio etf may be way to go from here!
Outstanding, ty! Can anyone recommend some growth ETFs?
My personal favorites for growth are VOO and VUG
@@MichaelM2K23 Thanks!
Yeah only stock I own is nvidia everything is ETFs. Way more simple and profitable 💯
You can’t put the last 3 years in your estimates..that once in a life time
The once in a life time you're referencing is a 86% growth from March 2020 (covid bottom) to December 2023. From March 2009 - December 2012, the market returned 111%.
So last 3 years aren't really once in a life time. BUT - I'd be ok if you're right...because that kind of growth only comes from pain and unwell times. I'd prefer not to repeat covid OR the Financial Crisis by all means!
My portfolio is 100% ETFS
I've absolutely been on the fence about doing this for a while now!
You should seriously consider it. I long realized that my stock picking sucked, mainly because I wasn't doing any of the analysis and just winging it. Unfortunately, when I burnt out, I just left things as is, holding a lot of losers for too long and missed out on a lot of the overall market gains. When I finally bit the bullet to eat the losses and sold off all of my trash to replace them with some index and dividend ETFs, it really felt liberating. Now I can ignore the constant hype on individual stocks and can resist the urge to "collect them all" because I know they're already represented in my ETFs. Removing the "fear of missing out " (FOMO) is a stress relief.
I'm not swearing off individual stocks but I'm becoming more of an ETF investor. I've picked a few (VTI, SCHD, VXUS) as my core investments and regard the individual stocks as side projects I invest spare money in.
Could you bring your investments down to a more reasonable ratio for your true average American....
Example this episode you are using the amount of 1000/month. And for most that is just unrealistic. So if you say start your portfolio will 100 to 300 maybe even as much as 500. I think that realistic price range would fit more of your viewers looking to learn and start. And 100/month-500 is a realistic goal to set aside every month for 20 years straight.. just a suggestion. Because when people hear you say 1000 that can scare people. Especially new people who are looking to start.
Your 5$/day is great for the beginner. But I think for even some of these longer term video like this would be better suited to real world invest abilities in this economy for your average American near minimum wage.
Whether you're doing 1000 or 100 or 50 it doesn't matter. The goal is consistency which will allow you to scale.
If you don’t completely know what you’re doing. Invest in ETF’s
Basically,
Investing long term = ETF
Investing Short term = Individual Stock
I was in ETF's but they have fees and take a while to go up🥴 I switched over to solid dividend stocks so I can make some money until they get to where I want to take profits 🙂
just buy MUU and TSLL and forget about it.
Byd
More important than the rationalizations going on here is that ETFs can be structured to represent a market, e.g. breakfast cereals. Companies like Post or Kelloggs might come and go, but we can be quite sure there will always be a market for sugar bombs. If you have a breakfast cereal ETF, then you own the sugar bomb market as a concept whoever it may be that makes them, not just a basket of stocks.
It doesn't need to stop there. maybe, sugar bombs are not eternal. (Sorry cockroaches!) Why are you just investing in a breakfast cereal market, when you could be investing in all the markets? If gravity ends, and the cereal bowl becomes impractical, the entire market ETF will capture breakfast in a tube that comes to replace it.
Say it louder for the people in the back.
Furst 😊
Second!😂😂
VYM, SCHD, SPYD, JEPI, JEPQ, XYLD, HDV, O, vici, pg, ibm, jpm, sun, jnj,ko,
Got it, I'm going all in Airbus 🫠
It's going to fly up ✈️✈️ Haha