I don’t think it’s as simple as comparing before and after numbers.
What if one of those stocks you held gets destroyed in the next few years? Then the numbers look much more in favor for VTSAX.
No one knows what those stocks will be doing 5-10 years from now. There is a higher probability your VTSAX will long-term be fine whereas the same cannot be said of individual companies.
There is always a trade-off, I’ve sold plenty of individual stocks early. I’m not 100% equities any more and those asset classes can sometimes drag down returns. As you get older, you have to do what’s right for your peace of mind. That’s worth a lot.
What if one of those stocks you held gets destroyed in the next few years? Then the numbers look much more in favor for VTSAX.
No one knows what those stocks will be doing 5-10 years from now. There is a higher probability your VTSAX will long-term be fine whereas the same cannot be said of individual companies.
There is always a trade-off, I’ve sold plenty of individual stocks early. I’m not 100% equities any more and those asset classes can sometimes drag down returns. As you get older, you have to do what’s right for your peace of mind. That’s worth a lot.
Statistics: Posted by Capster1 — Sun Apr 14, 2024 3:37 pm — Replies 84 — Views 8426