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Don't Hate Me But ... We Don't Need To Diversify
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- Опубліковано 31 лип 2024
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Chapters:
0:00 Intro/Diversification
0:28 My Opinions Have Changed
2:52 Reducing Winners
3:35 ETFs vs. Individual Stocks
6:07 Opportunity Misses
6:58 Majority Of Investors
9:22 Wealth = Concentration
11:25 Berkshire Hathaway
11:55 John Bogle - Vanguard
12:07 Naval Ravikant
12:46 Real Estate
13:16 ETFs vs. Individual Stocks pt 2
14:12 Tesla All In
16:03 Ask Yourself These
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Disclaimer: I am not a financial advisor nor am I qualified to give financial advice. My content is for educational and entertainment purposes only.
THANK YOU FOR BEING AN ICON
► Sharif TABBARA
#tesla #investing
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“Diversification may preserve wealth, but concentration builds wealth”
The reason why most people should not accumulate into one or two stocks (minus of course ETFs and the likes) is because most people will overestimate how smart they are. Only a handful of people in the world are truly are more skilled in the market than they are lucky. Those are the people who take huge risks and sometimes win but even the smartest people do lose as well. So that means if you are not smarter than the top 10% percent of the people at the top in this market, you need to protect yourself through diversity.
Well spoken, thank you very much. 👍🏻💯
Heyley, your not the only one. I have 3. TSLA, PLTR, and CCL.
Love it Hayley. I'm 95% invested in Grayscale LTCN! "Concentration is for building wealth. Diversification is for preserving wealth!" I believe it was Andrew Carnegie said that...
I’m thinking the same thing, well done Hayley
I am Index funds and diversification all the way. And that's after 18 years of investing and living through different markets. All the gamblers you mentioned were plain lucky.
Great info😊
Good video Hayley
My 8 individual stocks have outperformed my 2 etfs every year for 5 years…luck maybe but it works for me.
I agree with you 100%, Hayley. A few weeks ago you did a survey about „which principle you find least important when investing“:
Back then I also said: diversification.
Great video and ten out of ten.❤
Patrick
You're young, you will learn after many years. 2yrs investing experience is nothing.
Fair point
After 12 years I still find focused approach more rewarding granted in my retirement account I have it rather spread but my other account is Lazer focused on at most 4 positions.
Many traders diversify by type of position. Delta Neutral, Vega Neutral or Gamma Scalp for instance.
Honestly I have three core positions in investment Portfolio. 1) US index fund 2) Bonds and 3) World ETF I don’t need worry about anything things because these three are pillars in my Poe portfolio and balance out any disparity of market sentiment 😀 I am commenting after long time on your channel
The markets can be very rewarding especially stocks :)
Hayley, you had it right when you invested in ETF's
Good Job Hayley!
Wise young lady!
Wish I started at your age.
100% in Tesla shares. I normally sell 20+ covered put or call option contracts, each week, to make a little 'extra', and roll most of it back into purchasing more.
I have three ETFs in my retirement portfolio. I also have 12 individual stocks, but I only watch five of them closely. Those five stocks make up 80% of my stock portfolio value.
I think you hit the nail on the head in regards to individual stocks. The amount of money is definitely the major factor. (And maybe an exit position) but definitely the amount. I invest £700 per month into a sipp. There’s absolutely no way that’s worth investing in an individual stock, I’m better off in an index fund. Now if I happened to come across say 10k or more at one particular time. Then I would definitely research an undervalued stock.
However there are some etfs that focus on quality that destroy the S&P 500 over the long term. The thing is nobody can see the future. People like to quote Buffet but even he says it’s very difficult to beat the S&P especially nowadays. Most professional fund managers fail badly over the long term!
Also: I started out with 20 stocks, 5% each (kind of) "around" 11 years ago. After not selling (mostly...) I now have 75% in only 3 stocks - Nvidia, AMD and Apple. And after so many years with them I also know quite a bit about them. I still have 17 other stocks, also some "smaller" ones with very high potential (also Tesla and Palantir...) but they don't make quite a difference in my portfolio - yet. I am thinking about reducing to 15 stocks (from 20.) I personally could also easily live with 10 or only 5 stocks, but it would be quite hard for me to decide which ones to let go. I like them a lot 😎
Been telling people about investing nuclear power for years, they all told me i was crazy and was too risky...but it is the future of power generation and, well...the stocks speak for themselves.
Ps i also have big position in pltr and a small on in tsla 😊
For people picking stocks based on researching fundamentals, Warren Buffett himself has said that even a dozen is plenty. I started investing about 4 months ago and I now own 3 stocks which I continue adding to. If I find something compelling I will open a new position, otherwise just continue adding to my current positions.
Conviction matters more than diversification. Hands down.
I tend to agree, I do think people who watch your channel are investing nerds, I include myself in that so we will have the advantage of always keeping up to date with the companies we own. If you can understand that the Mega cap tech stocks generally lead and outperform the market you can have a good foundation. Then perhaps move into one or two more speculative/riskier picks.
Not diversification... But you should never ignore or sleep on other players connected to the market ur investing in... I learned this the hard way with Tesla...Tesla gave me tunnelvision and i missed a even bigger oportunity with Nvidia... Hopefully i am not to late...
I became investor to hobbyist options trader and learned quite a lot since I changed my mindset and strategy. Now I understand lot more about investing and growing 😀 if you are long term investor then you don’t need to worry but you must cut lazy stocks
I looked Into a Tech ETF and realized that I already owned the top ten companies that they owned yet they were only up 31% and mine were around 68% So they must get drag down by there diversity .
So lovely. ❤
SCHD ,Tesla and Joby
I divest PLTR into 4 different brokage accounts
I can see the merits in your financial plan. as long as you have a low average cost and you can sell quickly then you have plenty of time to wait and if things go wrong…flee.
You have done a lot of research. I think research is very important if you only want to invest in three stocks. But I would also suggest adding one ETF to a SIPP portfolio. stocks are not enough.
Hey Hayley ik heb 7 dividend aandelen en 6 groei aandelen 👍
Is the First time that I heard a beautiful and smart woman at the same time . I like it how you think!
TSLA, PLTR & SPY.
Hayley, only own PLTR, SOFI, and BBAI - long term adding only.
Over the years ive accumulated etfs, well diversified, also 15 individual company shares. They are in the background ticking over. Now im buying a single company ( glencore) as many as I can. My thinking is sooner or later it will go up, perhaps £1.50 a share and if ive 10,000 ill take the return. So long as you diversify to secure some safety.
You could look at it this way, PLTR is diversified into 50 different industries. TSLA is similar just not as many industries. I'm mostly invested in those two, but I spend several hours a week digesting everything I can about them. PLTR has the most room to grow in my view. I have two other small positions that I regret buying. It's all about conviction for me.
Thanks, Haley, for your interesting content. And I like your long hair down.😊
ive gone all in one one stock... so has bill gates elon musk and jack dorsy at one point.
I agree with you. I grew my account from 7000 to over 148000 in 2023. I reduced my diversified portfolio from 30 or so stocks to mainly UEC, TSLA, and PLTR. I know them very well, following them daily. I also learned options and carefully and successfully leveraged options to make 100 fold gains.
Wow, @UEC has skyrocketed. I used to follow uranium stocks, but I lost interest a few years ago.
UEC has one timed 🥊 lol UUUU since then.
@@michaelcaldwell3709 you lost interest at the best time lol
50% VUSA etf / 50% VHYL etf
Peter Lynch and Warren Buffet both said it..."diversifying is for those who don't have the time or inclination to study their investment choices". If you find a company that you can truly believe in because of mission and execution, especially one like Tesla, why would you want to dilute your growth by putting your money into other, lesser choices? If you really know something well enough to trust it, that is all you need, in life and in investing ha! I just found your site but like what I see/hear so far. Keep on keeping on!
GAC and chill
When will we hear more about your crypto portfolio? You have mentioned it a lot but don’t share anything about it. I would really benefit from hearing about that.
100% in TSLA looooong term 😎
Agressive consentration in conviction stocks, 1-3 of them.
I’m all in pltr.. in Italy we say” o la va o la spacca” ! Life is one…
You don't need to strive for perfectly equal weighted diversification across numerous asset classes and numerous income streams unless you do something stupid like put most, as in more than half, of your net worth in stocks. And if more than half of that stock portfolio is stupidly invested in stocks like Tesla and Palantir, you can go ahead and multiply the stupidness level by 5x. And if you did most of your accumulation of said stocks in and around the blow off top of the stock/economic cycle, multiply that by a further 10x. There are also stupidness exponentials for things like I have a strong conviction in my stock choices, I want this really badly, and I did my research.
Great job Hayley…this is exactly why I have 4,600 shares of PLTR. In 2030, 😮
Have you got kaspa in that crypto portfolio. I’m nearly all in kaspa with miners as well 😂I made quite a bit of money from kas last year
I'm only 10 seconds into this video, and I think diversification can go too far, I own less than 20 stocks in my portfolio and no ETFs.
Plus I like to stay away from certain industries
I think I read something where after having a certain amount of stocks, diversification doesn't make much difference to the portfolio and just limits gains
Crypto is like buying monopoly MONEY and hoping someone like you will buy it of you for more than you paid for it.
Crypto has no value only in your head.
I am 100% all in on TSLA. I accept that I will either be very wealthy or fairly poor within the next 5-10 years as a result. I accept the risk.
If you are a fund manager then you MUST diversify. If you are a retail investor then you MUST ignore the fund managers.
Se a tua estratégia estiver certa vais ficar muito rica, se nao estiver vais ficar bem na mesma. Para mim nao dá. Não conseguia suportar a volatilidade. Acho que com esse porfolio iria ter muitos pesadelos. Gosto de ambas as empresas, só não gosto é do risco. Desejo-te boa sorte para os teus investimentos.
essa estrategia vale para quem tem muita grana ja! e ganha muito bem... agora pensa numa pessoa q ganha pouco, se ela perde esse pouco q juntou com muito sacrificio, eh o fim!
👍🏽⭐️👍🏽
You concentrate your portfolio for growth & you diversify when you have enough & you want to maintain your position & not endure big losses. Diversification can equal diworsification & can hamper growth. I have 5 assets. I own a clapped out car worth about £1,500, I own a lease on my home worth about £70k, I have a final salary worth about £700 a year at retirement & I have a share portfolio invested in one share only worth about £180k and I am 100% comfortable.
For me. . .real estate, TSLA, Sp500 index, PLTR
Dont think it matters much either way. But investing in company's you understand well is important. Otherwise let someone else do it
The standard wisdom which is backed by tons of research works, but it takes many decades. Low cost index funds are for people who are okay with a standard salaried job for 40 years before retiring. I get nauseated even thinking of myself following this path. I see time and good health as part of the overall equation of financial freedom. I want to be financially free when it matters most: during the period of my life when I have the energy, health, and drive to make the most of it. Real financial freedom to me would be attained by age 40.
I think a reasonable plan is to put no more than a third of your wealth in anyone stock. If it one does well and exceeds the 1/3 without panic sell some and reinvest that cash in something else or one of the others in your list. As your wealth grows that 1/3 will be a bigger amount. Until you have enough then diversify more to generate a comfy income with no one source providing more than ten percent of your income.
Tesla and Bitcoin 💵💵💵
offtopic, but your kinda natural look is 👍
ETFs are the safer option in my opinion. I have individual share accounts but they behave like a mad YoYo, especially over the last five years. However, you’re young enough to recover from a hiccup or two. :)
Same here…my individual stocks are all in the red, but my index funds are green. Just too many unknowns that can derail individual stocks for my liking.
Diversity gets mediocrity. You are spot on if aggressively growing portfolio focuses hard on 3-4 until you grow.
Buffet at one time had 85% of all his money in 1 stocks the rest was held for margin.
I love Tesla and invest in them a lot. But it worries me if something happens to Elon.
One doubt I have about Tesla is when the entire automobile industry goes over to electric only car production, won't Tesla just lose a massive amount of market share?
Most of the investing greats didn't diversify, but they tell us to diversify. We need to learn from their climb, not what they do at their peak
Name them.
@@thegravelscot Warren Buffet, Joel Greenblatt, Monish Pabrai, George Soros, Charlie Munger. Just to name a few off the top of my head. They all didn't diversify until way after they became rich, if at all.
Hey gang
Hi Brent! :)
Tsla pltr and crypto 🙏🙏🙏
Given professional stock pickers (fund managers) get it wrong more than 90% of the time and apart from Warren Buffett very few get this right (and even he talks about investing in Index Funds for most) there are very few who can do this consistently over time - perhaps it is better to have some in Index Funds and some with your own conviction picks?
Have to say, putting all your eggs in one basket especially with a stock that is so reliant on the vision of one man who can be distracted by his other pursuits seems an especially risky strategy.
I'm sure I've just watched this about 30 mins ago 🤔
You may have... there was an issue with the upload and it was messing up my end ... I hope you liked it!
@@HayleyEich Aaw, right. Yes, very interesting, I'll be sticking with my (mostly) etf portfolio for now until it builds up a bit, it's still early days for me, but I do have some individual stocks invested in too, ( you know the ones ), I'll probably concentrate more on these in the not too distant future.
A couple more words on choosing individual stocks, and this notion that people can pick winners.
I'm struck by the example of ARK invest. They are certainly smarter and more knowledgeable than the average investor, and yet, if you look at the returns on their flagship fund, ARKK, it is down 6.9% over the last five years, even though they turned in some spectacular returns earlier on. Just for reference, Vanguard's Total Stock Market Index fund is up 75.7% over five years. Sure, NVDA was up 2,990% in those same five years. If I had a crystal ball, I would have been all in on NVDA five years ago, or better yet, SMCI, which is up 4,246% over those five years.
Yeah, hindsight is always 20/20. Picking NVDA or SMCI BEFORE they skyrocket, now, that's the hard part.
Remember, half of all investors have below average returns. That's just math, folks.
10 stocks is doable.
As you age, you want to invest in more dividend stocks for passive income. Everyone's path to wealth is unique to them.
I give you a Nobel prize it’s on the top of all videos you made. Like minded
Let me add something you maybe have to think about. First I outperformed the S&P this year with 40% returns as planned, I could have done more but I didn’t want or else am shifting from my original strategy which should be till the first quarter of 2026, based on my assumption should quadruple my gains if not more. Instead of doubling my gains this year I preferred to wait till the targeted year. With regards to diversification, it’s important however it doesn’t relate to the number of stocks you’re holding, the business you are owning instead. With 3 stocks in 3 different sectors you are well diversified, not my investment style, still part of it. would rather hold 200 stocks for obvious reasons, you may realize if you think a little bit.
I dont diversify, and only invest 7 stocks and havent had to work in 8 years.
Which stocks?
BIP, MAIN,DMLP,FLNG,ARCC,,PRT,HTGC,UTG.@@garethlaidler539
sorry thats 8 stocks i just added UTG
Nobody knows the future even with research diversification is the way to go into index or etf you are not smarter than Warren Buffet giving poor advice to new investors be safe people
Absolute nonsense. Diversification is one of the biggest advantages that individual investors have over the big institutional funds that are limited in what they can buy. They struggle to buy small caps in case it moves the price too much, they can't satisfactorily diversify because they will mimic an index, but we can. For individual investors it is far better long term to be as global as possible and cover other asset classes like Bonds, Real Estate, Commodities etc where necessary, not just Equities. Picking just 3 or 4 stocks as a small individual investor is lunacy and is likely to earn extremely poor results over the long term. And before anyone points out those that have become successful following this ideology, the failures are not counted, which out way the success stories massively. The success stories that Hayley mentioned where purely survivor bias from good luck, randomness and uncertainty.
I bought my house in California for $425,000. I sold it 10 years later for 1,400,000. The American dream worked out for me. Then Joe Biden came into office and raised prices on EVERYTHING!
TESLA is the best stock to own for the fastest growth it will be largest company in the world. I am all in 100 percent Tesla people just have spend time do research.
BH is 50% in Apple due to it being a small but very big winner for them - it was < 5% to start with - so they were diversified but picked a real winner - that's how it became over 50% of their portfolio.
You add to your successful position as it goes up, and you reduce your position as it goes down.
That makes no sense. Shares go up and down every day. So if it goes up 10x - you buy more? Or maybe sell 10% and see where it goes - all for free. Better to take the average than bet on 1 stock (which might be the next evergrande). Hindsight helps. Betting on 10 different tech stocks might be a safer bet - then thinking you can pick the next winner. I've made 10x on my Tesla shares in the last 4 years - not sure its going to do that again......... not unless they come out with some really v nice software advances
saying apple is 50% of berkshire portfolio is just incorrect. Half of berkshires investments are private/ non listed companies like GEICO. Apple is more like 25% of berkshire
Why not just go to Vegas and bet red or black on the roulette wheel?
Reading publicly available information about a company doesn't make one a better investor.
Diversification is an insurance policy for ignorance. Invest in what you know.
Tell that to all the folk who invested in banks in 2008.
Been investing since 2019. Yesterday my portfolio was negative since then, today it's slightly positive. I currently have 73% of my portfolio in Tesla. The rest is in around 10 other stocks, and about 5% in crypto (ETH & ETH). In order to make a reasonable profit sometime in the future, I'm staying undiversified. I didn't panic all the times since 2019 when my portfolio was deeply negative.
Beginning to invest is a journey, where you discover your risk tolerance, find out if it's too risky for you to even own an ETF, or if you're an investor or maybe even a swing trader or a day trader.
Everyone is different and some may need to diverify, some not.
Have a nice day everyone and invest wisely. 😊
( I'm a secret chocoholic 🍫, but don't tell anyone )
I think you are 100% on target ! It is a bit risky but when you see a stock like Tesla with such a progressive first principles approach to making the world a better place with so many paths to so much money ! The only reason I would want to diversify would be fear or greed (scary and tempting !) but I’m so thankful to say today , I’m all in Tesla !
Overrates strategy for beginners!
First 😎
Legend!
"Diversification is protection against ignorance"
So now you just sit down and watch how Elon destroy Tesla with half of your money. Very smart.