Quote:
Originally Posted by SeanPizzle
No Bogleheads in this thread? Buy and hold index funds. 90% of managed funds underperform the index over at 10 year period. Picking individual stocks as a retail investor is a fools errand, you will never out trade the machines. You also want to avoid triggering short term capital gains thru active trading, IMHO.
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Boglehead here. The only individual stock I own at this time is general motors, the rest is in ETFs and mutual funds or cash/MM.
The reason most managed funds underperform the indexes is because the funds tend to take on less risk. More diversification of portfolio means less potential downside.
Before I retired I was heavy into VUG and SPY (index based) but have changed strategy since.
And since I'm retired and am more concerned with KEEPING my $$$ than growing it long term, less risk makes sense.
Fer example, a few that I own:
VIG
VSCGX
VYM
DGRO
There's duplication there but my current emphasis is on high value and yield dividend stocks. I dumped most of my bonds earlier this year when interest rates started up which hurt the bond prices. I still have some, but no where near as much as last year.
I also have too much sitting in cash but I'm waiting for the next big correction.
Most of my investments are in ROTH or conventional IRAs so capital gains are not an immediate concern.