Sold my last individual stock this week ...

[papadad111]

Over time I have been reducing accumulation of individual stocks, in both taxable and after tax accounts, paying what ever cap gains where appropriate and have been shifting to a relatively lazy 4 fund portfolio of low cost broad equity index ETF's

I hit a milestone this week by dumping the last of my individual stock/shares.

I want the non-systematic risk reduction that the broad market etf's provide. I also find I don't have the patience to follow individual companies like I used to do. Nor am I good enough as a stock picker to beat the broad market consistently.

So now I can say I am officially an indexer ... Never thought I would say that, but here I am.

I am NOT smarter than the market despite my best effort, education, and 25+ years of trying. Yes. A few winners but a few losers too...

I'll still keep the "gambling account" active for occasional market timing shenanigans

 

[gayl]

Yeah, I've been coming to that realization as well. To that point, I've got 2 'buckets' core & explore.

Core: 80% and going up:
SCHA
SCHB
SCHD
SPY
CXA
PWZ
USATX

Explore:
GM
XRX
A few options to keep me from getting bored

 

[Fermion]

Too bad you didn't just buy and hold an individual stock called Berkshire.

 

[papadad111]

I had Berkshire for > a decade. It was my second to last liquidation... But with Buffett and Munger up and up in age, no telling where this stock goes once they die. I believe there is clearly non-systemic risk to BRK that I just don't want to take at this point in my own life cycle.

Core is: SPY,VTI,VXUS,VMY Only reason to hold some SPY is not wanting everything in vanguard based ETFs. Too big to fail is a misnomer else I would swap SPY into VTI.

 

[Free To Canoe]

Congrats on getting rid of your stocks. I accomplished this milestone a few years ago. I consider it a major accomplishment in my financial education.


Lately I have come to realize that I will need a "gambling account" to accommodate the "hormones" issues and keep the egg safe.

 

[DrRoy]

I completely agree with you. I fired a FA two years ago and have been unloading the individual stocks from the $ that had been with him. It is taking me a while because I did not want to take the tax hit all at one time in the taxable account. Next January will finish it, and I will also be all index on the equity side.

 

[Chris7]

I still hold about 50/50 between ETFs and individual holdings. My horizon is in no way long enough for rock solid conclusions, but so far my individual holdings have a small advantage.

cd :O)