The Financial Independence Show
The Financial Independence Show
Cody Berman and Justin Taylor
Index Funds vs. Stock Picking
33 minutes Posted Aug 14, 2024 at 7:00 am.
0:00
33:49
Download MP3
Show notes
In this episode, Cody and Justin discuss one of the most heated investing arguments.

Should you hand-select the "best" companies, or invest in the total stock market?

Some topics include:

Individual stocks are often investors' first exposure to the stock market
The mental drag of stress from volatility
How individual stocks can scratch the itch
Setting non-negotiable limits
More certain path to FI vs the potential for a home run
Bad bets we've made on individual stocks

As part of this discussion, we compared several individual stocks against VTSAX.

VTSAX is an index fund Vanguard offers and tracks the total stock market.

List of stocks including present-day value and annualized return if you invested $1,000 on Aug 9, 2004, and reinvested dividends:

VTSAX

$5,807
9.19% average annual return




Intel

$1,623
2.45% average annual return
7th Market Cap




Abercrombie and Fitch

$4,679
* 8.02% average annual return
Couple of years after Hollister's launch




Apple

$396,562
34.85% average annual return
Released iPod Mini
If you bought on July 6, 1994 (Forrest Gump release date) -> $1.1M (26%)




Coca Cola

$6,007
9.37% average annual return
Released C2




General Electric

$1,243
1.09% average annual return
5th Market Cap




Wells Fargo

$2,627
4.95%
* 15th largest market cap




TI

$11,496
12.98% average annual return
Year TI-89 was released




Sony

$2,691
* 5.07% average annual return
PSP release date




Nokia

$730
-1.56% average annual return
9 phone releases



We cover all of this and more.

We hope you found value in the episode, if you did, subscribe, leave a review, and share with a friend!
Links from The Episode

* Stoculator

YouTube Interview
https://youtu.be/0N4IlLBrYV0
Join the Community
We’d love to hear your comments and questions about this week’s episode. Here are some of the best ways to stay in touch and get involved in The FI Show community!

* Grab the Ultimate FI Spreadsheet
* Join our Facebook Group
* Leave us a voicemail
* Send an email to contact [at] TheFIshow [dot] com

If you like what you hear, please subscribe and leave a rating/review!

>> You can do that by clicking here <<
Learn More About Your Hosts
CodyDBerman.com (Cody’s Blog)

Saving-Sherpa (Justin’s blog)