💰ETFs first. Stocks second.

read time 2 minutes

Hi there,

One of the questions I get all the time is: "Should I buy individual stocks or just stick to ETFs?"

The answer usually surprises people.

Even though some of my individual stock picks have made me well into six figures, most of my money isn't in individual stocks. It's in index funds.

That wasn't always obvious to me.

Like many investors, I was excited by the idea of finding the next big winner. 

Over the past few years, some of those bets paid off. Investments in companies like Nvidia, Micron, and AMD have generated significant gains for me, with one position growing by more than $100,000.

But here's the part that rarely gets mentioned. Those gains came with risk.

Individual stocks can produce incredible returns.

They can also fall just as quickly.

That's why I treat them differently.

My core portfolio is built on broad index funds and ETFs. That's the foundation of my wealth.

The individual stocks?

That's the smaller portion of my portfolio that I'm comfortable taking more risk with.

If one of those investments performs poorly, it won't derail my long-term financial plan.

That's the difference.

Too many beginners do the opposite.

They put everything into one or two trending stocks they saw online and hope for the best.

That's investing with emotion. I'd rather build wealth with a system.

For most people, that system starts with ETFs.

Funds like VOO, VTI, or other diversified index funds let you own hundreds of companies at once. You don't have to guess which business will win because you're investing in the market as a whole.

Once you've built a strong foundation, developed good investing habits, and understand the risks, then there's nothing wrong with setting aside a small percentage of your portfolio for individual stocks.

That's exactly what I do. The goal isn't to hit a home run with every investment.

The goal is to build lasting wealth. And in my experience, boring usually beats exciting.

Build your foundation first. Take risks second.

Your future self will thank you for it.

Using my affiliate link helps support my team and I to create new content for you every week. Thank you! 

- Milan and Team

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