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re: Why should I invest in individual stocks and not mutual funds, index funds, and ETFs?

Posted on 12/11/24 at 12:13 pm to
Posted by notsince98
KC, MO
Member since Oct 2012
19959 posts
Posted on 12/11/24 at 12:13 pm to
if you know what you are doing, the advantage is you dont pay any fees to anyone. Every fund out there has a fee you are paying to someone. You can build the exact same portfolios as those funds by owning individual stocks yourself.
This post was edited on 12/11/24 at 12:14 pm
Posted by stewie
Member since Jan 2006
3996 posts
Posted on 12/12/24 at 8:06 am to
quote:

Every fund out there has a fee you are paying to someone. You can build the exact same portfolios as those funds by owning individual stocks yourself.


Yeah … that .03% management fee on VOO is a real deal breaker.

Keeping a close eye on management fees is a great thing, but is it worth the time to manage the rebalancing? For me, no.

Just buy the total market index fund with lowest management fees and roll with it.
Posted by notsince98
KC, MO
Member since Oct 2012
19959 posts
Posted on 12/12/24 at 9:54 am to
quote:

Yeah … that .03% management fee on VOO is a real deal breaker.

Keeping a close eye on management fees is a great thing, but is it worth the time to manage the rebalancing? For me, no.

Just buy the total market index fund with lowest management fees and roll with it.


Yeah because someone on here said it was easier or more convenient to own stocks directly....not.

The OP was asking if there are any reasons to own stocks directly. That is about the only reason and it is neither a huge reason nor a compelling reason to many people but it is a reason none the less.
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
130702 posts
Posted on 12/12/24 at 4:59 pm to
quote:

You shouldn't.
/thread.
Posted by Methedup77
Member since Dec 2024
288 posts
Posted on 12/14/24 at 9:09 am to
Buy Reddit and Rocket lab. Thank me later
Posted by BrewDrees95
Member since Jan 2021
347 posts
Posted on 12/29/24 at 7:26 am to
Etf is paying for my dream home. Rather than blowing &50 a night at some dive bar I put it in VOO, now I live in a mansion
Posted by Motownsix
Boise
Member since Oct 2022
2616 posts
Posted on 12/30/24 at 8:02 am to
While I think everyone should be invested, individual stocks isn’t for everyone. I have a mixture of individual stocks and mutual funds.

One bit of flexibility that comes with a self directed account is that when something like Covid comes along and the S&P initially took a big hit there’s not much you can do with your mutual fund. For a self directed account I was able to sell any restaurant, hotel, and service sector holdings so that I could buy Home Depot or Zoom shares.
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