If you have a collection of stocks that you have fully researched and fully believe to succeed in the future, should you still try to diversify into ETFs or index funds?
My portfolio consists of 5 different growth or undervalued stocks that I have researched and can confidently say will be important in the future. If I were to invest in just these stocks, then each would make up 20% of my portfolio. If I were to add VTI or VOO as per recommendations from people in this sub and the Bogleheads sub, each stock would then make up 16.6%, and 12.5% each in the case that I added both of these ETFs to my portfolio.
I (15m) am relatively new to investing, so that is something to consider as well, but these 5 stocks are pretty solid: NSSC, WFRD, ENVX, ASO, and Palantir.
Other things to consider would also be the market itself, many believe that the whole stock market is due for some serious pullbacks, and a major pullback would be pretty bad for VTI or VOO. If a pullback were to happen, I doubt any of the 5 stocks that I listed would be seriously touched considering their relatively low P/E ratios.
Any constructive criticism is appreciated.
Leave a Reply