Since then, Reddit has remained a meeting place for activist individual investors. Like the GameStop phenomenon, many democratic Reddit stocks are hazardous plays not designed with a long-run mentality. But some popular Reddit investments are excellent long-run buys, including Amazon ( AMZN 0.80 % ) and the Vanguard S&P 500 ETF ( VOO 1.01 % ), an exchange-traded store .
It ‘s easy to see why Amazon is a popular banal in any environment. It ‘s the largest e-commerce company in the world, and although there ‘s been a steep deceleration, it ‘s still growing and conquering new district .
In the 2021 fourth quarter, sales increased 9 % over 2021 to $ 137 billion, on top of a 44 % increase death class. Sales came in at the higher end of guidance for 4 % to 12 % year-over-year growth.
not only did Amazon make advancement across its businesses, such as announcing a price addition for Amazon Prime and gaining raw clients for Amazon Web Services ( AWS ), but it besides entered a newfangled space with its investment in electric-vehicle ( EV ) manufacturer Rivian Automotive, which bumped up its net income in the fourth quarter .
Its holocene announcement that its standard will undergo a 20-for-1 stock rip has generated even more investor interest than usual. Shares that monetary value more than $ 3,000 tend to price out many small investors ( unless they can buy fractional shares ), indeed this split makes amazon a lot more low-cost for more people, and these may be the types of investors who are Reddit regulars .
The breed has been a frightful gainer over the years, increasing by many thousands of share points over time. And it ‘s still a potent player, gaining 290 % over the past five years. The shares have been flat year to date, and they trade at only 50 times trailing 12-month earnings, a historically broken valuation. Amazon is a capital stock to hold with many years of growth still ahead .
2. Vanguard S&P 500 ETF
An index store such as the Vanguard S & P 500 ETF is an indirect room to invest in many acme stocks across the grocery store. Since the measure of the stock commercialize tends to increase faithfully over clock, investing in an exponent store gives investors access to those increases while reducing risk through diversification.
The top of this is about guarantee gains, while the downside might be lower gains than picking individuals stocks. The solution for that is holding an index fund while besides choosing great growth stocks, giving investors the best of both worlds .
Comparing, for exercise, Amazon and the S & P 500, we can see that Amazon badly outperformed the marketplace over the past five years. The S & P 500, however, gained significantly and benefited investors with secure and firm acclivitous movement .
fabled investor Warren Buffett owns both Amazon and the S & P 500 index fund. He counsels investors to place most of the their money into index funds, since the average individual wo n’t be able to pick stocks that can outdo the marketplace .
Owning both the S & P 500 index fund and Amazon gives shareholders the potential for plug and reliable gains over many years.