This is very wrong. Capitalism fundamentally requires abstract property rights (i.e. someone can own a thing they have never even held or seen, much less used), and it requires a state to provide very strong protections for those abstract rights.
In the absence of the state imposing such a property right regimen, you wouldn't have capitalism, since it'd be impossible to accumulate capital if the only way to own property is to physically use and/or occupy it.
Importantly, capitalism is not the same as free markets! Humanity has had free markets in one form or another for most of its history, but capitalism is very recent historically speaking.
The notion that socialism is always anti-individualistic is also wrong. Left-wing libertarianism is a thing, and goes back to the earliest anarchist writers (who literally invented the term "libertarian" as a political label - and they didn't have the likes of Ayn Rand in mind when they did that). There's even free-market left-wing anarchism.