From Now On Here's How I'm Answering: What Stocks Should I Buy?
07 Nov 2024 #misc“What companies should I buy in my brokerage account?”
That was a question that popped up in a Whatsapp group with some of my ex-coworkers and colleagues. In fact, it was not the first time that question popped up. From the same person.
Here’s what I answered:
“If you don’t want to be a full-time investor, go with a broad market index fund. If you don’t know which one, pick any that tracks the S&P500, like VOO or SPY.”
But I was wrong.
Not that my answer was wrong. I’m not a money expert. But I’ve read some money books and changed my mind about money. I realized that the question itself shows something more: not doing the homework and outsourcing thinking to somebody else.
It’s like asking: “Do you know anyone I should marry?”
You’re completely at the good intentions of the other person. He should guess the traits you’re looking for in a partner and go through all his relatives, friends, and acquaintances to see if there’s anyone with those traits. He misses lots of things to answer that question.
I’m not answering, “what companies I should buy in
The right answer is:
- Don’t ask your poor friends for money advice. The most expensive advice is the one you get for free.
- If you don’t know what to invest in, start investing in yourself, so you can decide on your own where to put your money.
- Never let somebody else tell you what to do with your own money.
The only thing I can share is: “Here is what I do with my money…”
“Ask the jeweler for jewelry advice.” — The Richest Man in Babylon
That’s how I’m answering that question in the future.