Whats the best way to invest 10K Euros?

[meshaa]

@preciousme Why would I cry? Will Europe invent a new google? Will Japan start another Visa/Mastercard type of company? Will Koreans start to outsell samsungs compared to apples to higher segment? Will china invent venture capital ? I think all of those are unlikely, USA is just a powerhouse that has no alternatives at the moment. I wish it was different, but it's the reality.

 

[blackiey]

@meshaa I would go 100% the better VWCE: V3AA. So to not add to destroying the world.

 

[keelercd]

@blackiey Says someone using the internet ending up in cables reaching big datacenters consuming lots of power and generating heat, demanding rescources from out the ground so datacenters could be made. I could go on.

 

[clearlightgrace]

@abdullahtawhid

1. Only pick 1 of these ETFs, otherwise you simply have more acquisition costs for essentially a very large overlap.
   
2. Stock picking is always tempting but even for the vast majority of professionals underperforming a broad ETF in the long run. If you want even more exposure to tech than your ETF is giving you, better take a tech ETF (e.g. QQQ, S&P500 info tech) so you have the re-balancing mechanism of an ETF that over time will weigh the winners more heavily, rather than picking individual stocks yourself
   
3. Mixed feelings: even if it doubles in a short period of time, a 5% allocation will not give you a massive increase on your overall investment. And BTC is currently at an all-time high. That said, 5% is not taking a big risk either and if it helps you to avoid fear of missing out, why not?
   
4. Similar comment here, and I'm wondering how you want to do this practically. Buying physical gold doesn't sound like a good idea... And while gold is often applauded as a safe alternative to stocks, it's still relatively volatile (though more stable when the stock market takes a dive) and for example over the past 20-25 years, gold hasn't outperformed the S&P500 by much (I think 7.8 vs. 7.0% CAGR over 25 years) so while that may be skewed because of the recent boom in the stock market, I don't think your 5% invested in gold will make a big difference even if it performs a little better...

 

[roberto83]

@abdullahtawhid Diversification is nice but in this context, I think is pointless. I would drop the gold because you can't even buy one ounce of it, unless you already have some gold. And the Bitcoin, is at all time high. If you are new to investing I would pass the individual stocks for now, especially the tech ones that are pretty overpriced right now. If you are just starting I would go with one ETF and diversity in time.

 

[abdullahtawhid]

@roberto83 Which ETF do you suggest? Vwce?
I was thinking more into buying gold ETFs not gold directly.

 

[roberto83]

@abdullahtawhid VWCE is a good choice. I don't really see the point of a gold ETF. In most countries, physical gold is not taxed while a gold ETF would be taxed as any other ETF. There are probably other drawbacks to it, search on the sub. I would buy physical gold but only in a noticeable quantity.

 

[reflectj]

@roberto83 but VWCE is at all time high. /s

 

[bev81]

@abdullahtawhid If you invested in VWCE 1 year ago you would be up 27%.
If you invested in VWCE since Jan 2024 you would be up 11%.
The average return rate for VWCE per year should be around 5%.

The "buffet indicator" is at 190%, when in ideal conditions for buying it should be close to 70%.
We fluctuate from extreme greed to greed on a daily basis.
S&P500 grew almost 1% in the last 10 minutes of market open yesterday.

Now, I don't want to jinx or anything but it looks to me that if someone can move the entire US economy in 10 minutes as they please and this impacts all world indexes, then it doesn't really matter where you invest in. If we grew so fast so much and indicators don't flash exactly green, then it could be worth considering slowly adding money little by little (dca) rather than going all in.

But at the end of the day, normal people like us have absolutely no idea what is going on and what the future holds. So, just go with 1), dca and expect the unexpected.

 

[noah007]

@bev81 'dca'?

 

[bev81]

@noah007 Dollar cost averaging

 

[crusader91]

@abdullahtawhid Make sure that you have a comfortable buffer of savings before investing. You can also earn quite good returns for deposits at the moment as well.

Why do this - if you where to loose your job then you can dip into your savings instead of investments, which could be experiencing a downturn at the time - economic downturns and negative stock returns are quite well correlated, so being hit from both sides would not be good.

 

[iklog]

@abdullahtawhid I'd go 80% MSCI World, the other 20%, you can be more aggressive if that's what you want.

 

[wpp]

@abdullahtawhid Apart from what everyone says about tech stocks and whatnot, it’s actually more efficient to invest a big sum once instead of spreading it out over a year. People get afraid of a crash happening right after or whatever but that can literally also happen right after your last payment. It feels a bit more safe to spread it out but people have calculated it times and times again and big sum once eventually always beats small spread sums. Time in the market vs timing the market etc. But yeah, in the end it depends on what you’re comfortable with.

 

[sh797]

@abdullahtawhid I would do 70-80% MSCI, and the rest DCA to Bitcoin over a year or so. Additional savings during the meantime 50-50% to MSCI and BTC. That's just my personal preference though.

 

[joyfulanyway]

@abdullahtawhid Would go 90% in 1. and 10% in 3.

 

[pastorjustin]

@joyfulanyway

• 90% in VWCE index and you let it grow for 2-3 decades
• 10% buying bit coin, if you are psychologically okay with loosing this 10% full and forgetting it for some time.

As bit coin investing can be extremely tricky, you may want to think it twice. As I said, you might loose all your money. Or you might become mega rich if you cash out at the right time.

 

[joyfulanyway]

@pastorjustin I can only speak in my experience and sustain that comment. Even 10% exposure to Bitcoin is small.

I don't know anyone that dedicated 50h to understand Bitcoin not invest in it.