[Vee]

100% of my investments are in index funds. Considering putting a small amount into an individual stock with great potential.

Any opinions on top stocks with great potential?

[Shawn]

Well most people gravitate towards Facebook, Amazon, Nvidia, Google, Netflix, Apple, Tesla. Of course the largest most well known hot stocks are very well represented in the indexes.

This really provides zero diversification benefit. It requires research to pick stocks.

Remember tips are for waiters and worth exactly what you paid for them.

[Matt]

Pick something that isn’t in your index funds. A lot of people mention the tech stocks but you already own those through the index funds most likely.

Personally I have been buying UBER.

It is a risk, however, their CEO is awesome and moving them into serious profitability and self driving companies are partnering with them because they have the best booking platform and user base.

This is domestically and abroad.

[Scott]

There’s always good individual stocks out there. Just make sure you’re not buying because someone told you to. Make sure you’ve done research.

Here’s some questions to feel good about to know you’ve done some research before you buy: you like the sector and its growth potential.

You like their debt to income ratios. You like their p/e or peg ratios, you like their historical operational performance and accuracy to forecast.

You like the product and leadership team.

What ever individual stocks you buy, make sure you answer those questions to your satisfaction.

[Author]

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