I also believe a lot of people confuse individualism (which I subscribe to) with egoism (which I don't). Classical liberalism is an individualist philosophy, in that it emphasizes the importance of individual rights as the basis for organizing society.
The idea that states and governments are unreconcilable with individual rights, which is argued by anarcho-capitalists, is a bizarre post-war / anti-communist reactionary philosophy that is egoist at its core.