Why I Choose Index Funds Over Individual Stocks (And How I Built My Portfolio)

When I first started investing, I was drawn to individual stocks. Everyone around me seemed to be buying tech stocks, and I thought, “I want in.” But after some time, I realized that buying individual stocks wasn’t the best approach for me.

The Allure of Picking Individual Stocks

Like many new investors, I got excited about the potential of picking individual stocks. I read about companies like Tesla and Amazon and thought I could get in on the next big thing. But the reality is, picking individual stocks is not only stressful, it’s also incredibly risky.

Why Index Funds Made More Sense

After a few months of buying and selling stocks, I realized I was chasing the wrong thing. I wasn’t trying to build a stable investment portfolio. Instead, I was gambling.
That’s when I started learning about index funds—and my mindset shifted. Index funds, like the S&P 500 or Total Market Funds, provide broad exposure to the market with low fees. By investing in these funds, I was able to spread my risk across hundreds or even thousands of companies, reducing my overall risk.

Building My Portfolio with Index Funds

Today, my portfolio consists of a mix of VTI (US stocks), VXUS (international stocks), and BND (bonds). I invest in these funds every month, and I don’t worry about picking stocks anymore.
The best part is that index funds require almost no maintenance. I don’t have to track every stock or read the latest news on earnings reports. I just set my investments on autopilot and let time do the work.

The Power of Consistency

I realized that the key to building wealth wasn’t picking the perfect stock—it was about consistency and long-term growth. I set up an automatic deposit each month into my index funds and watched my portfolio grow steadily, without worrying about market volatility.

Final Thoughts

If you’re new to investing and don’t know where to start, I highly recommend index funds.
They provide low-cost, diversified exposure to the market, and they’re much less risky than picking individual stocks.
Start small, stay consistent, and let the market work for you.

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