With no mucking about here are my top 5 stock picks for 2021.
1/. Diversify
2/. Low cost
3/. Long term
4/. Enough growth to match your goals and investment time frame
5/. Regular investments
Disappointed? Sorry if you came here for individual companies, but if you know my work, you know that would never be me.
The best way to long term wealth in the stock market is long term buy and hold, low cost, widely diversified index funds. If you need more info on what all that means, then do read the investing series here.
Stock picking is the opposite of what I propose. It is often short term focused, high cost and undiversified.
Now is the time of year all the so called gurus come out with their 2021 predictions. But 2020 reminded us that no one knows what the heck is going to happen.
The short answer is I don’t know the top individual stocks ahead of time. Neither does anyone else. In fact, you, a coin tosser, or a blindfolded monkey (no offence) has just as much of a chance of picking the best performing stocks as a so called ‘professional’.
So if you must chose individual stocks then I suggest an approach similar to mine where it only makes up a small portion of your portfolio that you don’t mind losing for the small hope of greater returns. As for which stocks, it really is a crap shoot. Your guess is as good as anyone else’s.
The information contained on this site is the opinion of the individual author(s) based on their personal opinions, observation, research, and years of experience. The information offered by this website is general education only and is not meant to be taken as individualised financial advice, legal advice, tax advice, or any other kind of advice. You can read more of my disclaimer here