Instrument
Individual stocks
Mid–highWhat it is
Buying shares of a single, specific company listed on an exchange like B3, BMV, BIVA, BVC, BYMA or the Bolsa de Santiago/Lima — or abroad. You own a real slice of that one business, with all its specific ups and downs.
How to buy it
Open an account with a regulated broker in your country, fund it, and place an order for the stock you have researched. Most brokers now let you buy fractional shares of larger international companies too.
Pros
- Full upside if the company performs well, with no fund fee taken off the top
- Direct ownership and voting rights (for common shares)
- Some pay dividends, a form of regular cash return
Cons
- Zero diversification in a single stock — company-specific risk is entirely yours
- Can underperform or fall sharply for years with no guarantee of recovery
- Requires genuine research; following tips is not a strategy
A worked example
Putting a large share of your savings into one company means that if that single business stumbles for a decade, so does most of your portfolio — the same money spread across a broad index fund would have ridden out that one company's bad decade far more calmly.
Frequently asked questions
How many individual stocks should a beginner own?
Most beginner-focused guidance suggests keeping single-stock bets to a small, deliberate slice of a portfolio that is otherwise diversified through funds — not because stocks are bad, but because concentration risk is real and easy to underestimate.
Do I need to check stock prices daily?
No — and doing so tends to push people toward short-term, emotional decisions on what should be long-term money. A periodic review (quarterly or so) is generally enough unless you are actively trading, which is a different activity from investing.