An investor on Reddit’s r/stocks recently asked a question that hit home for many people: “Is holding individual stocks worth the stress anymore?”
“I used to think I could beat the market by picking my own stocks,” the person wrote. “But between earnings roulette, random macro shocks, and hype cycles, I’m starting to feel like just holding VTI/VT is the move.”
VTI refers to the Vanguard Total Stock Market Index Fund ETF (NYSE:VTI), and VT (NYSE:VT) refers to the Vanguard Total World Stock Index Fund ETF. These are total market index funds that aim to mirror the performance of the entire U.S. or global stock markets, offering broad diversification with minimal effort.
Don't Miss:
- Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here’s how you can earn passive income with just $10.
- $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation.
A Growing Preference For Passive Investing
Many Redditors agreed, saying they had already switched to passive index funds because picking individual stocks was just too stressful and time-consuming. One user replied, “If it is stressful, don’t. VTI is pretty stable by comparison.”
Another added, “I feel like I have a second job babysitting my portfolio. I wish there were another way. Maybe this is it.”
The r/Bogleheads approach was heavily referenced throughout the thread. Named after Vanguard founder John Bogle, this investing philosophy emphasizes long-term, low-cost, passive investing—typically through broad-market index funds—and encourages avoiding market timing or frequent trading.
“Just become a Boglehead and call it good. No guesswork, just long-term gains,” one comment said. Several investors pointed out that most professional stock pickers don’t outperform the market consistently, so regular investors have an even steeper hill to climb.
Trending: The secret weapon in billionaire investor portfolios that you almost certainly don't own yet. See which asset class has outpaced the S&P 500 (1995-2024) – and with near-zero correlation.
Still, Many Can’t Let Go Of Stock Picking
Even with all the warnings, some people still think picking individual stocks is worth it if you’re willing to put in the time and have the right mindset. “I pick individual stocks for fun,” one person said. “As long as you’re not buying risky/sh*tty stocks, you’ll make money.”
Some shared massive gains from choosing the right names at the right time. One investor said their investments in Palantir Technologies (NYSE:PLTR) and Nvidia (NASDAQ:NVDA) had more than quadrupled in value over the past three years. Another claimed they’re “up 700%” on AST SpaceMobile (NASDAQ:ASTS) and have more than tripled their net worth in the last two years.
But not everyone trusts that these results are repeatable. “The best analysts can’t do it consistently on a long timeframe,” one person wrote. “But you’re probably better than them because you made one good pick?”
See Also: If You're Age 35, 50, or 60: Here’s How Much You Should Have Saved Vs. Invested By Now
A Hybrid Strategy Gets Traction
Many investors in the thread advocated for a middle-ground approach. One described their approach as 90% passive investing, 5% allocated to unconventional assets such as gold, GameStop (NYSE:GME), and bitcoin, and the remaining 5% in actively managed stocks. “I find having a small basket of stocks allows me to learn quite a bit about the companies.”
Another added, “The passive allocation does the heavy lifting, and the other 10% scratches the itch to be active.”
There’s also a psychological angle. One investor admitted, “If you’re stressed holding stocks at all-time highs, I wouldn’t be in the market.”
Some described stock picking as a rewarding hobby. “I like knowing and believing in the names I hold. Even in periods of underperformance, I don’t sweat it.”
Whether to invest passively or actively depends on each investor’s goals, temperament and willingness to put in the time. There's no one-size-fits-all approach, but knowing your limits may be just as important as knowing the market.
Read Next: Over the last five years, the price of gold has increased by approximately 83% — Investors like Bill O’Reilly and Rudy Giuliani are using this platform to create customized gold IRAs to help shield their savings from inflation and economic turbulence.
Image: Shutterstock
