Hey everyone,
just wanted to share my view on investing.
I'm a professional trader, so I am kind of supposed to be a risk-taker, but when it comes to investing, I only stick to the largest-cap companies because I see each one of thm as a portfolio of well-protected startups operating under the same roof. I mean, if one of them fails, it's not a big deal for the company as a whole. They can absorb it and move on to the next opportunity. With their enormous resources, they constantly innovate, invest in new projects and grow.
You'd probably ask why not just S&P500. Two reasons:
1. Ethical: I prefer to choose the companies I own
2. Less companies -> potentially higher returns if I pick well.
What do you all think? Does this make sense for a solid investment approach?