What do you think it would be a better investment.Invest some money on the index SP500 or buying stocks of Amazon.I think that the SP500 offers a more "safe"/less risk kind of investment in the longterm but also Amazon it is showing signs that isnt going to be nowhere.But anyway,what do you think?
SP 500 vs Amazon
- Thread starter Mpas
- Start date
S&P. If Amazon crashed to zero tomorrow, what would you have? A company worth zero, done and gone, and an index of 500 companies. Remember GE and the DOW? GE started getting stupidly low, so the Dow folks replaced them with Walgreens Boots, IIRC.
That is the nature of the index. All eggs in many baskets, not just one basket. Lotion.
Very few things go to zero in one fell swoop. It's up to you to see when sentiment shifts and get out. Even if you like $TSLA, at this point I wouldn't go long just because of the $TSLAQ hate.
S&P 500 and then add extra shares of Amazon to your liking. This will actually give you the same result as most investors and advisors promote: diversify and have some holdings in S&P, regardless of what else you do. This could just as well be S&P + real estate, or your own business with some assets in cash and S&P, etc.
This. Word.
To trade, Amazon would at least give you some action, though there are certainly better choices in general. But the two choices given disallow them. To invest, S&P and real estate, as above. Okay, just S&P then. I forgot, the choices are given in the OP. No, myself I would not invest wholly in Amazon. We have all seen how vulnerable tech stocks are, even very strong ones. Lack of diversity could give you astonishingly good, OR BAD, results. I would hate to have to live off my investments at exactly the same time that they are down 70%. Diversified blue chip holdings are less likely to go as low as fast.
A younger investor of course can stand more risk. Still, all AMZN? Not a very good idea IMHO.
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I like ETFs; they tend to lose less, which means you make more, generally speaking.Besides , there plenty of ETFs that have 10% in AMZN.
Fonder of Investors Business Daily said '' i dont know why people like ETFs, I can make more money with single stocks.'' FINE, if you are like him ;NYSE seat, unusual stock picking skill, unusual work habbits, built 75th largest newspaper in USA, million $ book sales. I know why i like ETFs more than single stock ; i can lose less, which means i make more.
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