Should you buy individual stocks or just stick with ETFs? It’s a question every investor faces at some point and there’s no one-size-fits-all answer. But there is a smarter way to figure out what works for you.

The Case for ETFs

• Instant diversification – Own a slice of dozens (or hundreds) of companies in one shot.
• Lower volatility
• Great for passive investors – You don’t want to do stock research, you just want to pass go and collect your $200.
• Often lower fees – Especially index ETFs that don’t try to beat the market.

The Case for Stock Picking

• Potential for much higher returns – Choose the right stock(s) and you could greatly outperform the market.
• Personalized portfolios
• Greater control over tax timing – Harvest losses or time gains to match your goals.
• Opportunity to invest in companies you believe in – Whether it’s clean energy or your favorite tech disruptor.

Where ChatGPT Fits In

ChatGPT can help you weigh both strategies by:

• Comparing stock vs. ETF strategies based on your goals and risk tolerance
• Simulating hypothetical portfolios (e.g. 70% ETF / 30% individual stocks)
• Analyzing individual companies or ETFs in-depth
• Helping you build a hybrid approach tailored to your financial situation

How to Choose

Ask yourself:

• Do I want to beat the market (of course you do)—or just track it?
• How much time am I willing to spend managing my investments?
• Do I enjoy researching companies and digging into financials?

There’s no wrong answer, it’s about what works best for you.

The Bottom Line

Warren Buffett said most people are better off buying ETFs or index funds—and generally, I agree. (You should listen to Buffett.)

But here’s the truth: you don’t have to pick sides.

ETFs and individual stocks can work together—and that’s how I approach it.
I suggest owning an ETF like VOO, which tracks the S&P 500 and provides broad market exposure. Then pick a few individual companies within that ETF—like Microsoft—for greater upside and conviction.

Still unsure where to start? ETFs are your best bet.

For example: let’s say you believe AI and tech will drive the future but don’t know which companies to pick. You could start with a tech ETF like XLK, which gives you instant exposure to a basket of top tech stocks. Later, once you’ve done more research, you can branch out and buy individual names you believe in.

That’s the beauty of the mix you get safety and upside.

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Not sure where to start?

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