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Teach your 18 year old to pick 5 companies they think will be around in 15 years. Stick some money into each and don’t touch it. Taking money out of great stock
by chrisgd 7y ago
Teach your 18 year old to pick 5 companies they think will be around in 15 years. Stick some money into each and don’t touch it. Taking money out of great stocks because I thought it was too expensive has been the greatest mistake I made
- ryanwaggoner 7y agoStatistically, your 18 year old would be much better off in a Vanguard broad market index fund. The chances that they’re going to pick 5 companies that outperform the market is pretty remote.
- chrisgd 7y agoBut a concentrated portfolio is actually more likely to beat an index. So besides a 401k, do what I suggested
- ryanwaggoner 7y agoGot a source on that? It contradicts most research I've seen. Obviously the right concentrated portfolio will beat an index...but that's the trick, isn't it?