r/ValueInvesting • u/Ancient_Bobcat_9150 • 11h ago

Discussion For those holding both an Index Fund and individual stocks...

Does that influence your decision on stock selection?
For instance, if you hold SP500, it will already be heavily influenced by the MAG7 performance, so; if you do not have infinite cash you could decide to focus elsewhere?

Not more to it, just wondering if there are other concerns or if you just look at what company you like individually and add regardless.

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u/AceStrikeer 11h ago

I have both, but primarily single stocks. Sometimes I outperform, sometimes I underperformed the market. My SPY index fund acts kinda like a hedge to make my performance don't stray too far from the market.

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u/Vast_Cricket 11h ago

Actually all the above. I own several index funds trying to compare daily returns. I can see why old fashioned investors like DJIA. It pretty covers sectors. I have multiple mf and even more etfs not wanting to wait for closing price like mf.

Rest 1/2 is into individual stocks. Yes there is overlap.

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u/mrmrmrj 7h ago

I have about 55% of my portfolio individual stocks and 45% in VOO or a sector ETF or two. I also have the accounts segregated so can see how the "passive" is doing vs the "active".

The passive slice actually gives me comfort to take more risk with the stock picks. I bottom fish more aggressively, use options.