Amazon vs. S&P 500: Which is the Best First Investment? | personal financing

Which is the best buy?

Whether you decide to invest in Amazon or the entire S&P 500 will largely depend on your investment style.

If you buy Amazon, you will also need to invest in a few dozen other stocks to build a comprehensive portfolio. This isn’t necessarily a bad thing, especially if you enjoy researching stocks and want to make your portfolio as personal as possible. By picking individual stocks, you also have a better chance of beating the market – something not possible with S&P 500 index funds.

On the other hand, if you’re looking for a low-maintenance investment that does most of the work for you, you can’t go wrong with the S&P 500 Index. You’ll still own the Amazon stock when you invest in the S&P 500 Index, plus you’ll gain exposure to hundreds of other strong and stable companies at the same time. the time.

Amazon and the S&P 500 are solid investments, and your decision will depend on whether you prefer to buy individual stocks or an index fund. There is no wrong answer, and by understanding your personal preferences, you can make the decision that is best for you.

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