Why I Sold All Of My Stocks To Buy Index Funds And ETFs

In this video, we'll hear from a few legendary investors about when it makes sense to sell a stock. After that, I'll fill you in on why I decided to sell all of my stocks to buy low-cost Vanguard index funds.

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Disclaimer: This video is for entertainment purposes only. Everyone's situation is different so do your own research before making any decisions with your money. If you need help then contact a Certified Financial Fiduciary before trying anything that is mentioned in this video. I prefer a Fiduciary financial advisor that charges an hourly fee as opposed to an ongoing fee based on a % of your portfolio. Always remember that incentives determine the type of advice they give you so one that charges an hourly fee is less likely to be problematic.

Not Trying To Maximize Returns
I’m not really interested in maximizing my returns at all costs. I know that makes me sound like a crazy person who just ate a handful of magic mushrooms so let me explain. We have this inherent urge to make the most money investing, as quickly as possible because that’s how you become wealthy! To beat the market, you have to tilt your portfolio in different directions to gain an edge. Whether that’s picking specific sector funds, actively managed funds, picking individual stocks, or whatever.

Need A Portfolio For The Good And Bad Times
To me, the biggest risks are the ones we can’t even imagine happening. Because of that, I need to build a portfolio for myself from the very start that I’m able to hold onto when those really really weird times come along. But that portfolio also needs to be able to be held during the good times when I’m sitting there watching everyone else around me outperform my portfolio in the short term. I’ve come to the conclusion that holding dorky index funds is what gives me the ability to hold on during the good and bad times.

Essential Intent Investing
By making the one decision, to only invest in index funds, I immediately remove a thousand other decisions later down the line. I can skip paying attention to the current stock market news for an extended period of time because none of that applies to me. I never have to decide whether I should or shouldn’t buy a stock, sell a stock, buy more of one I already own, rotate into another sector, asset class, and just about any other decision every other active investor makes.

More Free Time
Fewer decisions also lead to more time on my hands to do other things. There’s too much time involved in properly managing a portfolio full of individual stocks and a bunch of funds. We’re all just playing this big game of what we do with the 24 hours that are allotted to each of us every day. Spending a couple of hours per week looking over and managing my portfolio isn’t guaranteed to increase my investment returns. My time, and most other people’s time, is way better served doing more productive things that are going to have a bigger impact on our lives.

#Indexfunds #stockmarket #investing

[JarradMorrow]

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[danceoutnow]

Someone who did well to set up for retirement told me the difference between financial professionals and average people is the professional knows why they lost while the average person has no clue why. But neither of them knows how to intentionally beat the market. And that's because the market can't truly be beaten. The actually wealthy got there by creating or investing in a vision, which became something a lot of people believed in and wanted, and the market changed to reflect that. You can't beat the market because it's a reflection of people, and people are always changing and chasing shortcuts. With index funds, you're no longer trying to beat the phantom, you simply become the phantom.

[Katsuya]

Me personally I invest about 80% of my money in Vanguard index funds like VTI, and VXUS. The other 20% I have invested in hand picked stocks I bought when I felt they were undervalued. I've been investing for about 3.5 years now, and so far I've been able to beat the market with my hand picked stocks. But who knows if I'll be able to continue to in the future. Thats why I'm not willing to go any more than 20% with my individual stock holdings.

[doviegojmerac]

This dude is literally the definition of financial literacy he's not just giving you stock picks like other Youtubers he actually teaches you how to read the market and such. Good luck to everyone watching this, May your investment yield you outstanding profits. Spend less and invest more

[anantsharma]

Hey Jarrad!! Your video was a real eye opener man.. For years I have been Investing in individual stocks(since my mid 20s)and then suddenly it struck me like a lightening that what am I doing with my life.. Investing ain't some fun game. It is a serious business on which my life and my family's life depends.Suddenly I found your video and believe me buddy, I watch it like a ritual every night before I sleep. I'm 35 now and hope to slowly grow my wealth with index funds without any mental pressure.

I really like your simplistic approach. Dunno man but something struck me about you that I love to watch you everyday. Lots of love and respect from India!!

[dweb]

I agree! VTI and VOO and Chill. Youtubers are screwing with peoples heads, emptions and making investing seem way too complicated.

[shephudson]

100% Agree.

I wish I would have known this in my 20's.
Learned from Ramsey and Bogle in my 30's.
Great results through my 40's.

I can still smash a beer can on my head.

[jesssc]

Ahh I did it just now! Sold all of my individual stocks with a +120% gain. One is AAPL, sold at 480+% gain!
I’ll withdraw and put it in a HYSA, and reinvest DCA for 12 months to QQQM, SCHD, VOO!

[jeremytorgersen]

Great video! We are the same kind of "weird". Index Funds, Essentialism, Stoicism, Investing for time rather than merely 'maximum' returns.

[christian]

I’m primarily dividend etfs with a sprinkle of companies I believe in. Strict Growth stocks are hypothetical, you only see the money if you sell. Dividend gives you cash monthly or quarterly.

[joesphreiley]

I did exactly the same, I now own two ETF, no more individual stocks.

[mattsweet]

if I took your advice 2 years ago when I took back control from the investing firm and began to manage my accounts I would have doubled my money. So I needed that painful experience to become enlightened like you are - thanks for sharing this, I agree 100%! What convinced me was backtesting the returns of my top 10 favorite ETFs - their 5 year % return made virtually the exact same return as the S&P500 - without all the transaction costs and time wasted.

[andrewdempsey]

The biggest risk that he can’t even imagine happening is that indexes can provide 0 or negative real returns for decades. Time management is the most important point here.

[mvsrikrishna]

A really good case for investing in index funds. Considering the volatility because of the pandemic, war, global supply chain disruptions, etc. Index funds are a good option for people who want a hands off approach and earn decent returns. Most retail investors can't beat index funds even after putting a lot of time, effort and energy into researching and buying stocks. The additional time one gets by investing in index funds can be used to create new income source by doing something productive like freelancing (or making YouTube videos!).

[akin]

As long as 80% of your investments are in diverse Index mutual funds or ETFs, the remaining 20% can be in solo stocks. Or just stick with index mutual funds or ETFs.

[avs-forum]

I am doing the same thing right now -- selling all my stocks and moving the money into 4 index funds. I am 50 and started investing 5 years ago and recently learned I cannot pick stocks. I also realize my time is running out. So I might as well pool eveytrhgin together into a couple index funds.

[jimphilip]

Best video in the investment community

[shun]

Same here, I still have some individual positions left but mostly its in index funds now. You're doing good work man, there's so many noise out there

[MrSete]

Got rid off mine aswell just got apple and tesla shares which I’ll keep longterm 10 yrs plus and put my money into etf's thru stocks/shares isa 👍👍

[jesuslives]

I've been thinking a lot about the value of time when it comes to buying an investment property. Will I have a higher ROI than an index fund? Almost certainly. But how much time will I have to spend managing it, and making decisions regarding maintenance costs, booking inquiries, etc. It's hard to justify when looking at it from that perspective.