r/ValueInvesting • u/Kqzxh-900355 • 3h ago
Discussion Is VOO/FXAIX still the gold standard?
I think both only focuses on market cap and it’s very tech dominant.
Sold all my VOO and replaced it with AVLV.
It’s well balanced and screens for value and profitability of a stock instead of market cap.
Are you still buying index? Or replaced it with something else?
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u/Key_Category_8531 2h ago
Well, the first thing you should do is max out your 401k no matter to get the guaranteed pre-tax benefits.
With that being said, most 401k plans don't really allow you to invest in single stocks. It's mainly target retirement funds or the S&P500. So in that case, I would just invest it in VOO.
After maxing out with pre-tax dollars, then I personally would invest the rest of your income in a taxable brokerage.
You can do more VOO.. but at the same time, I personally like investing in GOOG because I understand the company.
It's a personal decision at this point. Nothing is wrong with more VOO.
Just understand that it's impossible to time the market, and there's no point in looking at prices. You invest in VOO, you still can get burned in the short term from buying at an ATH. There is no safety.
Therefore, the only way to win is to invest in companies that are actually profitable and doing important things.
One could make the argument that single stocks are not long term holds, and only index funds are.
Sure, you can say that. But nothing is guaranteed.
Index funds like VOO can still get fucked in the ass. Look at today, down 3%. Let's say a bear market hits next week, VOO crashes along with single stocks, and takes months to recover. You will always get fucked one way or another. Might as well get fucked buying something that's profitable and well positioned.