In this episode, Cody and Justin discuss one of the most heated investing arguments.
Should you hand-select the “best” companies, or invest in the total stock market?
Individual stocks are often investors’ first exposure to the stock marketThe mental drag of stress from volatilityHow individual stocks can scratch the itchSetting non-negotiable limitsMore certain path to FI vs the potential for a home runBad bets we’ve made on individual stocksAs part of this discussion, we compared several individual stocks against VTSAX.
VTSAX is an index fund Vanguard offers and tracks the total stock market.
List of stocks including present-day value and annualized return if you invested $1,000 on Aug 9, 2004, and reinvested dividends:
VTSAX$5,8079.19% average annual returnIntel$1,6232.45% average annual return7th Market CapAbercrombie and Fitch$4,6798.02% average annual returnCouple of years after Hollister’s launchApple$396,56234.85% average annual returnReleased iPod MiniIf you bought on July 6, 1994 (Forrest Gump release date) -> $1.1M (26%)Coca Cola$6,0079.37% average annual returnReleased C2General Electric$1,2431.09% average annual return5th Market CapWells Fargo$2,6274.95%15th largest market capTI$11,49612.98% average annual returnYear TI-89 was releasedSony$2,6915.07% average annual returnPSP release dateNokia$730-1.56% average annual return9 phone releasesWe cover all of this and more.
We hope you found value in the episode, if you did, subscribe, leave a review, and share with a friend!
Links from The Episode
StoculatorYouTube Interview
https://youtu.be/0N4IlLBrYV0
Join the Community
We’d love to hear your comments and questions about this week’s episode. Here are some of the best ways to stay in touch and get involved in The FI Show community!
Grab the Ultimate FI SpreadsheetJoin our Facebook GroupLeave us a voicemailSend an email to contact [at] TheFIshow [dot] comIf you like what you hear, please subscribe and leave a rating/review!
>> You can do that by clicking here <<
Learn More About Your Hosts
CodyDBerman.com (Cody’s Blog)
Saving-Sherpa (Justin’s blog)