Why 'Just Buy VOO' Could Be Your WORST Investment Decision

Unpopular take… “just buy VOO” is a recipe for disaster. Unlike the COUNTLESS unqualified people on the internet who will tell you to do that, I’m a former investment professional and I have a CFA charterholder on my team for this channel. I recognize what I’m saying runs counter to what you’ve probably heard on the internet many times, so in this video I’m going to cover WHO is telling you to just buy VOO, WHY that’s become such a popular take, and why I think it’s a recipe for disaster.
Let’s start with the who. Between portfolio managers, analysts, financial advisors, and everything in between, there are THOUSANDS of investment professionals out there, and I’m not sure if a SINGLE ONE would advise people to invest all of their money in the S&P 500. Mostly, the message comes from people who make investment CONTENT, but have very limited investment knowledge.

00:00 Intro
00:32 Who Is Telling You To Just Buy VOO
2:30 Why People Think Just Buying VOO is A Good Idea
5:35 What History Shows Us About Past Returns

@Marcos_Milla
@NolanGouveia
@TommyBryson

#fundamentalsoffinance #voo #etf

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[bdhanes]

I subscribe to both you and Nolan G. I have VOO, QQQM, VXUS, and SCHD in my portfolio. This video is saying not to just do VOO, but you frustratingly didn’t propose any alternative. 👎

[Brakelate]

Warren Buffet says “buy low cost S&P500 index funds only” . You may have heard of him.. I Will take his advice over a “former investment advisor” and current dude on youtube..

[vivekbogale]

So what is your recommended asset allocation ?? Do you agree with Ben Felix’s asset allocation model

[WigglyCoop]

I think an important factor not mentioned in this video is that the majority of the time for most people you’re not looking 10 years ahead. You’re not even looking 20 years ahead. You’re probably looking close to 30 if not more approaching retirement. So yes the market is cyclical and different funds will do better over different times but for most people who just want to put money in a 401k/IRA and then take it out at 65 I don’t think “Just buy Voo” is the “Worst” strategy or “disastrous”. I definitely agree more diversification would be better and having some bonds and some international markets and some small or mid cap companies would be better but come on the “worst” financial decision?!? Gambling, the lottery, etc exist and anyone watching this money would and should take the just buy voo strategy over that 8 days a week.

[gennarestful]

Thank you so much for making this video. I previously watched one of the videos you showed, and at the time it made sense to not put money into international stocks, etc. But now I understand going back just 10 years doesn’t show the whole picture.

[jesster]

Thanks for making this video. It's great to see another point from a professional. In the future in this type of video, please elaborate on a possible percentage of a portfolio you would suggest this Stock/ETF be in and how to use it best for the people that have invested in it.

I'm liking the content, please keep it up. Side note, can you do a video on MLP's in the near future? I'm looking to invest in some and would like to hear your thoughts

[tmsupreme]

Do you think it's worth it to take a bit more risk and focus a bit more on return in stead of having bonds in your portifolio if you are a bit younger and are planning to pout the money away for a long time?

[Discovery.]

If you’re with Fidelity buy FXAIX is way cheaper than VOO, return basically the same. Why pay more for VOO?

[noodles]

One question... Does this logic apply to holdings over longer periods of time such as 2 or 3 decades? You give the example of 1999 and fast forward 10 years, but it would still have been a great investment at the time if you had held onto it until now.

Isn't the SP500 pretty much always a sound choice given enough time (within reason)? Wouldn't you need a catastrophic turn of events for the US for the market to not grow over a prolongued period of time, given their ridiculously strong geopolitical position in the world?

[Skeer]

Every wealthy person I've ever met ALL say the exact same thing. "If I could invest all over again, I would have just gone all in on the S&P500." The trend is your friend, and the trend says to just dump everything you can afford into the S&P500, or rather a low-cost ETF like VOO that follows the S&P. You talk about mitigating risk, but when people are young, they should be taking risks. There's that old saying you may have heard, "No risk, no reward." I mean come on...the S&P500 isn't all that risky. It's a fund that is highly diversified and is constantly swapping out poorly performing companies with good ones. I'm going to take the advice from the millionaires that I personally know, and the famous ones who all say the same thing. Low-cost ETF that follows the S&P500. Forget the Youtubers, this advice is coming from the real people who've done it. If VOO starts to decline, that means you buy more. it's quite simple and nearly idiot proof.

[mbank]

I agree that just by VOO alone might not be enough entirely, but it is far from "recipe for disaster"...

[AutoDudes]

Really glad this channel popped up. It’s akin to clear value tax. Nice! Thanks Kyle.

[isaac]

Great video, I’ve been learning a lot from your videos. I have a question regarding international stock exposures. Given that today’s economy is more globalized than ever, is it fair to say that buying US stocks also gives you some exposure to international? Top emerging market stocks like TSMC and Samsung are all somewhat reliant on US companies so theoretically they should grow and fall together.

[ConradFriedrichjz]

It seems certain stocks are undervalued, flying under the radar despite their potential. You can't help but wonder when the market will recognize their true worth. How can I invest $600K wisely to ensure our future security?

[Computerfly]

This is my first time here, I hope to see more balanced content with actual data. I'm trying to determine when and where to invest. Thanks for this info.

[bozemanbear]

Disappointing video. I'll never subscribe to a channel that simply shoots down another content maker without providing a solution.

[hhbattery]

If you want average returns compared to the rest of investors, go ETFs. If you want to be the best, go stock-picking. And the markets are overvalued in general right now. Buying ETFs right now is not a good idea.

[whydoineedahandle]

Halfway thru the video and you have not given one single reason why buying VOO is a bad strategy. Not sticking around for the second half ✌️

[HighChancellorAdam]

It seems you are trying to justify the existence of investment professionals when they charge fees without providing any insights or value.

Investing in VOO or VTSAX over a 10+ year time horizon may not be optimal, but you won't go wrong doing it and you'll beat the professionals doing it, without paying any fees.

[JEBaker-gjhf]

I just don’t know anymore it’s so much information out here and no one really knows what’s legitimate.