If you are looking to do some personal finance - in general it’s not a good idea to pick your own stocks. You are going against massive analysis teams in Goldman Sachs, and they are probably going to win. Instead look into index funds or similar!
If you are looking to do some personal finance - in general it’s not a good idea to pick your own stocks. You are going against massive analysis teams in Goldman Sachs, and they are probably going to win. Instead look into index funds or similar!
Warren Buffet is such a firm believer in this principle that he bet a hedge fund manager $1 million that he couldn't beat the S&P over a decade[0]. Buffet won. The S&P beat the manager by 5% ANNUAL return.
Hedge fund managers pick stocks all day, every day. If these guys with Ivy League finance bona-fides aren't able to consistently beat the S&P, you should really think about whether you'll be able to beat it in your spare time.
if someone has bought FAANG + MS + TSLA 10 years ago - would s/he beat S&P ?
Also, just so little companies is very risky. E.g. if Tesla flopped you'd probably underperform
That's basically the point. It's easy to beat the S&P with knowledge in retrospect.
It already happened and we know the outcome. Hindsight is 20/20.