I chose to take on a high level of risk when I started an individual brokerage account in 2021 to invest extra money. At the actual peak of the tech bubble, I made a significant investment in growth stocks. I was down fifty thousand and fifty percent at my lowest. I only purchased and held stocks. It was awfully timed. never made a sale. Right now, I’m in the green. I simply wanted to celebrate. At least my heart is hardened against future downturns, but I could have been much wealthy if I had simply invested everything in VOO.
How is this even possible? Just buy VGT, it typically outperforms the S&P 500 and is primarily focused on tech.
Examine the cathe wood. Arkk is still 70% down.
My account was down 57%, or 330k, from 2022 to September. By July 2023, it had recovered completely, but I mostly sell puts, so I had sold all the stocks that were causing the decline. Since then, it has recovered more than 400k.
Yesterday, I made a similar move. deposited more than $10,000 into a Fidelity Software fund approximately four years ago. Number-wise, it has increased by $400 over the course of its existence, through COVID-19, and back again. The plug was pulled.
Haha, from the start of 2022 to September, my account was down 57%, or about $330K. By July 2023, I recovered all of it, but I mainly sell puts, which resulted in getting assigned all the stocks during the drop. Since then, I’ve made over $400K. I’ve learned that selling a large number of puts on single stocks isn’t worth it compared to ETFs, but I’m still holding short puts on AVGO and NVDA.
That’s frustrating, it’s difficult to witness such minimal growth after waiting for so long.
What are your biggest holdings in that account?
At 12.7%, the only stock is unquestionably Nvdia. Amazon comes next, followed by Crowdstroke.
Since April of this year, the majority of fresh money have been invested in VOO, which is 12%.
How could you lose that much with those 3 wonderful players?
I had a bunch of losers too.
Congrats, , it can certainly be challenging to hold on in those situations.
In 2021, what did you purchase? My January 2021 tech-heavy account has increased by almost 70%. It will be up 111% if Baba and Bidu are not present.
I am glad you’re well. For this reason, it is said that you should only invest money that you can afford to lose or won’t need for a long time. The fall that both VTI and VOO went through during that time also shows that investing in a broad market index fund is a method to reduce risk, but not completely remove it.
I was in a similar situation. My 2021 investment of $100,000 eventually broke even a few months ago, and it has now increased to $110,000. If I still haven’t dropped 35% on Shopify, it would be even better. At one point, I was down 60%.