Quote:
Originally Posted by hikernut
You said you also have a 401k, which I assume is your primary investment vehicle, and this $150/mo is some extra $$ you are willing to invest with more risk? True?
If so, I think your general idea is okay. However, the two companies you selected will not grow enough in the future to make the investment gains you are expecting. Apple's trailing 12-month revenue is roughly $400 billion. If you expect it to grow, let's say 30% a year, in 20 years the revenue would be about $80 quadrillion dollars. Is that reasonable? Let's see. World GDP this year will be around $25 trillion. If it grows 5% annually, in 20 years that becomes about $65 trillion. So short of Apple finding customers on lots of other planets, growth of 30% (or anything remotely close to that) simply will not happen.
Smaller companies, let's say with annual revenue of $100 million or even $1 billion, have a lot more opportunity to grow fast for a long time. Of course, many (most?) of them will not be successful.
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Hello hikernut,
Your first question is correct. Just got $300 to the side to risk in investing for stocks.
Great explanation and makes alot of sense.
You are right. I do not want the worry of individual stock long term.
I will use the extra $300 to save in the bank or increase my index contributions that I have already in SP500 index and TQQQ.
Yes, i do not want the hassle and work involved in picking the next Apple or Amazon to DCA in
Thank you
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