Good stock investment strategy?

Question

Hey, I'm 20 and relatively new to the stock market.

So far, I've been investing a small amount each month in an ETF, which is relatively safe for the future.

I'm already paying more attention to stocks, reading up on them, and talking about them with my friends who are also involved.

Now my question: Is the strategy of simply investing in many different sized companies a good one or a silly one? By that, I mean, I buy one share each in 10-15 of the largest companies, for example, Alphabet, Amazon, Microsoft, Apple, Tesla, Meta, Rheinmetall, etc. – the ones that are, let's say, the most well-known. Of course, the prices of individual stocks can fluctuate and even fall, but the fact that the others rise more than compensates for this? Or am I thinking too simply, and that's not a good idea? If you look at the prices over the long term, for example, Amazon, they almost always go up on average. Please explain your opinion, thank you 🙂

aberli · Answer

Shares are wrong and evil, because the gain of more is exploited by externalization and almost never comes through synergies as claimed

christl10 · Answer

A share of every company, you won't get far.

Do it as with Beate Sander, who has invested €3,000 after her research into each share and if the share has doubled, she has invested the profit in another share.

And always saves the amount up to €3,000 until she could buy shares again.

She started in 2002 and was a millionaire in 2022. Unfortunately she died last year, but she wrote books that are recommended.

sophonisbe · Answer

Stay with the ETF. It is also cheaper thanks to partial exemption, source tax credit, etc.

annastark · Answer

Generally, this idea is good to scatter the plants,

However, if you always buy only one share, remember that you have to pay "minimum" order fees and thus the fees are high percentage by purchase price. Earn money in the daily money account until you have over 1000,- together and then buy

funship · Answer

There is no automatism after which shares are constantly rising. In between, they like to fall, sometimes over longer periods.

In addition to the selection of suitable values (rheinmetall is not even one of the largest 500 companies in the world), timing also plays an important role.

In recent years, the largest companies in the world, especially the "Magnificent 7", have grown like stupid. But there is no guarantee that this will go on. 20 years ago, quite different companies were on top.

bauschaum143 · Answer

Must be more than 1 in each case, but diversification is very good even if you already diversify with nem ETF enough. Can also make savings plans, for example, at Amazon, etc, if you want to keep it forever and not flip it.

guenterleipzig · Answer

In the case of investment in individual shares, care must always be taken to ensure that sales are proportional to trading costs.

This is usually not possible with only one share per value.

Here, the trade costs quickly reach orders of magnitude that make it difficult to get into the positive area in the foreseeable future.

The better strategy is if the ETF is saved until a certain critical sum of approximately EUR 25,000 has been reached.

Then you can start this sum step by step in 5 individual values to each approx. 5,000 EUR.

You can gradually expand these 5 values

I personally don't act under 5,000 EUR/trade, much more.