My current portfolio is half ETFs and half individual stock picks like Reddit, Palantir, and Amazon. I’ve received a pretty good gain YoY that is above the average ~7% return. The only downside is my individual picks are largely within the NASDAQ, which comes with expected volatility.
Is this a good portfolio allocation?
Is a good portfolio allocation where half of the allocation is ETFs and the other half is individual stock picks?
byu/NoSir5628 ininvesting
Posted by NoSir5628
3 Comments
Sadly no, for the overwhelming majority of people this will underperform the broad market in the long run. You can luck out on a shorter term basis, but there are folks with much more access to data and information and ability to manipulate prices, unless you dedicate a massive amount of time to learning and researching (and even then, you’re still likely to underperform), you’re essentially just rolling dice.
It took me a while to learn this, and I’ve kept a few individual picks, but in total they’re like 10% of my taxable brokerage account (which itself is a smaller portion of all my investments including 401k etc).
My individual picks are also trying to diversify out of what’s covered in the broad market (so, unlike AMZN which is already 4% of SPY); includes a gold miner and copper miner (up 200-300% over the last 3yrs, whoo!), a REIT dealing with cannabis production… a solid state battery start up…
It depends on the ETFs and stocks.
Most people can’t beat the market.