Our stock / investment picks
Updated September 22, 2020
These investment picks are not "sexy" and not likely to produce 100% annual returns.
Why? Investments capable of such returns are also capable of large losses and require
frequent monitoring and timely selling, something we'd like to avoid. We are looking for
more stable, long term growth without the need for periodic expert analysis.
Although picks here are diversified and
safer than holding individual companies, they are based on stocks. Stocks traditionally
have periods of massive declines over 20% (like March 2020), but typically bounce back afterward.
If you don't have the stomach to hold on through such declines, you probably shouldn't invest in stocks.
Enough talk, here are the picks.
#2: Vanguard total world stock ETF (VT)
This ETF has a massive portfolio covering small-, mid- and large-cap stocks all over the
world including developed and emerging markets. It does not include frontier markets. Vanguard is able
to pull this off with just a 0.08% expense ratio (at the time of this writing). It’s a passive, market
cap weighted fund, so over half of the assets are US stocks.
#1: Vanguard total international stock ETF (VXUS)
This single ETF provides broad (market cap weighted) exposure to both developed and emerging
markets outside the US, with an expense ratio of just 0.08% at the time of writing.
This fund includes small-, mid- and large-cap businesses. Many experts believe equities
outside the US are better valued at this time. Even the most US-centric investors like Warren
Buffett are shifting money overseas. At the same time, many countries will outpace the US in GDP growth
in the coming years. While there are currency and political risks associated with international investing,
most experts expect ex-US stocks to outperform their US counterparts in the coming decade.