Hey question for yall.
For the past few years I've been putting about $500/month into index funds for the S&P 500. Returns have been good, no complaints.
I'm thinking of switching up my strategy and putting that $500 into individual companies monthly. So Apple, Microsoft, Google, Meta, maybe a couple of military or medical companies (Eli Lilly, Boeing, Lockheed) etc.
I want to see if the returns will be more profitable investing in these individual companies as opposed to investing in the entire S&P 500.
Any thoughts?
My advice would be to invest in index funds until you have a macro understanding of the market...I have a good # of shares in $SPLG and $ONEQ...these funds mimic the S&P 500 and Nasdaq
Once you learn the macro market, start targeting ETFs...electric vehicles, clean energy, AI, fintech cybersecurity, robotics, pharmaceuticals, space, etc...
Once you develop an understanding of the ETF, price movements for the ETFs, companies included in the ETF, industry trends, etc...
You're then ready to invest in individual stocks
Understand the difference between trading & investing...if you invest, know the industries, identify the trends, believe in the company, be patient, and continue to invest on an automated schedule
Hope that helps youngin'