And I own almost 6,500 businesses! These companies are spread across the globe and span every sector. Eat that, boss!
These companies are divided between VWRL (3,144 companies) and IUSN (3,319 companies).
Now owning all these companies sounds like I’m the richest person in the world, but that’s not quite right. At the time of writing this, my portfolio is worth approximately 17,000 euros.
If we use the world equity markets as a proxy to how much the companies in VWRL and IUSN are worth, my share is a whopping 0.0000000002% of these companies. Yeah, I own almost nothing.
Investing in Index Funds
By buying shares in companies you become an owner of these companies, for a small part. With these shares, you will have a vote in some important decisions through the shareholders’ meeting and you are entitled getting part of the profit.
Now you could buy Apple stock with all your money and hope for the best, but that’s a big gamble. The next iPhone might flop and you’ll lose a lot of money.
It’s wiser to spread your investments across multiple stocks. The more the better, I would say. And the only practical way to do that is by investing in index funds.
These can be both mutual funds as well as exchange-traded funds or ETFs. I invest in two ETFs, but if you have access to mutual funds with low costs and broad coverage they’ll work as well.
Large and Small Cap
The reason I invest in these two products is that I want to have exposure to both large and small cap companies.
Not only am I diversified across a lot of sectors
And that brings a lot of upsides. If one country experiences an economic downturn, I don’t care. If one currency goes up or down, it doesn’t matter much. And the best upside is this:
In which companies do you invest?