Key insights
- The post questions the value of small individual stock investments compared to ETFs, even when those stocks perform well. The author feels the gains are insignificant due to the small initial investment. This highlights a common investor dilemma regarding portfolio allocation and the perceived impact of smaller, riskier bets versus diversified, lower-risk strategies. The post suggests a potential shift towards larger, more impactful investments, implying a slightly bearish sentiment towards small-cap or speculative stock allocations.
Most of my holdings are in ETFs but I’ve over the past year or so I’ve invested small portions in a few individual companies that I believe will do well, like 1000 each or so. And they have done well- climbing 40-70%. But this material ‘success’ ends up being a few hundred dollars. Whereas if I had invested 10K in that company it would translate to thousands.
And so while I’m happy that I had the conviction to make that good investment, it doesn’t feel impactful. Is there a point to investing small amounts in individual companies? Or if you’re going to invest do you pretty much need to go bigger for there to be any worth to it?