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Why Some People Invest in Themes and not Individual Stocks

  • Wallace
  • Jul 3
  • 2 min read

Updated: Jul 8

Let’s be honest: if you’re just starting to invest, picking a single company or companies can feel like pressure. What if you choose the wrong one? What if something happens in the news and the stock drops tomorrow? The good news: you don’t have to invest one stock at a time. Many new investors are drawn to something called thematic investing, which basically means investing based on big ideas rather than individual businesses.


So, what is thematic investing, and why does it matter? Thematic investing is about looking at where the world is going and choosing groups of companies that fit into that future. It’s less about, “Should I buy Stock A or Stock B?” and more about, “What kinds of change do I want to support with my money?”


For example, here are some common themes people invest in:


  • Green energy: solar power, wind farms, electric vehicles

  • Tech and AI: smart tools, automation, cloud computing

  • Wellness and health: biotech companies, fitness apps, mental health platforms

  • E-commerce and delivery: global online retailers and logistics services


So instead of guessing which one company is best, you could invest in a stock package that includes several key players in the green energy space. That way, your money is tied to a broader theme, not just one company’s performance.


Why is this helpful for beginners? Well, investing by theme takes the pressure off having to be a stock-picking expert. It lets you make decisions based on trends you believe in or industries you want to support—without feeling lost in the weeds.


Plus, it can feel more personal. Maybe you care about sustainability, women-led companies, or technology that improves accessibility. A stock package based on those values makes your investment feel meaningful, and not just mathematical.

 
 
 

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