For simplicity, I chose 3 of my vested assets to show the difference the yearly returns (beginning of 2023 to end 2023) namely, VOO ETF (tracking the SPX500 index), PG (Proctor & Gamble) and Meta (Facebook) stocks respectively.
One can see that PG has given the worst performance returns out of the 3 assets , registering a single negative digit returns of 1.87% , probably worse off had you invested the capital in a bond. The ETF was not too bad, given a 1 year return of 24% and the champion of course is the tech darling, Meta offering a staggering 177% return.
Selecting which stocks to buy is part science (studying the business model, financials,etc) and part luck. I said luck because there is sector rotation at play each year and if you happen to ride on the right sector, you are going to win bigger and faster in the same time frame. However, putting all your eggs in one sector can be dangerous as it could quickly falter or goes out of favour this year for many reasons that an individual investor cannot control.
Therefore, I park some of my funds in the VOO ETF which offers me a not too bad returns consistently and the winning stocks I selected are a bonus. I make sure that capital allocation does not get too big so that if anything happen, my pot of diversified assets will help to rebalance the losses.
For those new to the market, you might want to consider an ETF that you like based on your selection criteria - dividends, geography, sectors, risk exposure,etc.
Please DYODD and manage your capital wisely
One can see that PG has given the worst performance returns out of the 3 assets , registering a single negative digit returns of 1.87% , probably worse off had you invested the capital in a bond. The ETF was not too bad, given a 1 year return of 24% and the champion of course is the tech darling, Meta offering a staggering 177% return.
Selecting which stocks to buy is part science (studying the business model, financials,etc) and part luck. I said luck because there is sector rotation at play each year and if you happen to ride on the right sector, you are going to win bigger and faster in the same time frame. However, putting all your eggs in one sector can be dangerous as it could quickly falter or goes out of favour this year for many reasons that an individual investor cannot control.
Therefore, I park some of my funds in the VOO ETF which offers me a not too bad returns consistently and the winning stocks I selected are a bonus. I make sure that capital allocation does not get too big so that if anything happen, my pot of diversified assets will help to rebalance the losses.
For those new to the market, you might want to consider an ETF that you like based on your selection criteria - dividends, geography, sectors, risk exposure,etc.
Please DYODD and manage your capital wisely