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My followers know that I advise them to build a well-diversified portfolio and to hold it through the market's up-n-down cycles. They also know that I believe they should build such a portfolio on the foundation
VOO: The S&P 500 Should Be The Cornerstone Of Your Portfolio
Summary
- I advise investors to build and hold a well-diversified portfolio through the market's up-and-down cycles. Such a strategy is a proven way to build wealth.
- Vanguard S&P 500 ETF is an excellent and cost-effective option, with strong exposure to the technology sector and top holdings in AI and cloud computing.
- VOO has a strong performance track record with a 10-year average annual return of 13.1%, making it a solid choice for investors looking for market exposure.
- In my opinion, the S&P 500 should be the foundation (i.e., the largest holding) of a well-diversified portfolio, and the VOO ETF is an excellent choice for a foundation on which to build.
Michael Fitzsimmons is a retired electronics engineer and avid investor. He advises investors to construct a well-diversified portfolio built on a core foundation of a high-quality low-cost S&P500 fund. For investors who can tolerate short-term risks, he advises an over-weight position in the technology sector, which he believes is still in the early stages of a long-term secular bull-market. For dividend income, and as a 4th generation oil & gas man, Fitzsimmons suggests investors consider a position in large O&G companies that provide strong dividend income and dividend growth. Fitzsimmons' articles on portfolio management recommend a top-down capital allocation approach that is aligned with each individual investor's personal situation (i.e. age, retired/working, risk tolerance, income, net worth, goals, etc) and might include allocations into investment categories such as the S&P500, technology, dividend income, sector ETFs, growth, speculative growth, gold, and cash.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of VOO, QQQ, DIA, AMZN, AVGO, GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.
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