(04-09-2021, 03:46 PM)ken-do-nim Wrote: Awesome thanks Eric. Now I need to compare those to ONEQ, SYLD, and TDV from the Investopedia article. Yeah I've become ETFs first, individual stocks second. So while I don't mind holding some DGI individual stocks, I'm missing the ETF(s) that should have come first.I think an ETF/stock combination can be a good plan and may be where I end up when I decide I don't want to spend so much time managing a portfolio.
Using your DGI as an example, you probably have some good ideas for stocks that will likely excel over the average. IMO AVGO is one of them. But do we have 15-20 great ideas, and the willingness to monitor them? You need a fairly diversified basket to maintain the safety of VIG so that isn't just a small handful of stocks. But you could add two or three stocks to an ETF and maybe boost your returns. Maybe it doesn't work out, but you leaned VIG a little more into a few sectors you believe in long-term. You maintain some control.
I hold about 35 stocks I would consider DGI. At any given time five of them don't seem like such a great idea for the next few years, but I tend to hold most of them a bit too long. Charlie Munger has discussed this at length even 5 stocks is good enough. He leaves out the part that Tim Cook the AAPL CEO will take his call or go have lunch. Normal folks can't possible have adequate info to make a bet with our entire net worth on five stocks. It's one of the few pieces of horrible advice I've ever heard from Charlie. You would never hear that from Peter Lunch and Berkshire Hathaway is noting at all like that.
I think you are going to be more at ease with an ETF and a couple individual DGI stock picks. We will scold you for impatience lol, but you aren't stuck with those picks for 20 years. The facts may change. It's actually likely there is a better idea for 2030, but AVGO sure looks pretty good for at least the next few years.
I know I am hard on you here but I do mean to help. You have a few years before the port gets so large that a big mistake is painful. I won't hit your $3MIL goal but I will sure be ecstatic if you do Ken.