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Mike
Carruthers:
With
the money you have to invest in the stock market, should you
buy individual stocks?
Daniel R. Solin:
No, all of the data indicates
that trying to put together a portfolio of individual stocks
that will beat the markets is practically impossible; the experts
can't do it so it's very difficult to understand how investors
believe that they can do it.
Attorney
Daniel Solin author of
The Smartest Investment Book You'll Ever Read…
Investors should
only buy mutual funds because mutual funds provide diversification.
Diversification is critical to investors who are seeking superior
returns. All investors should have as their goal, seeking market
returns, which are superior returns.
And that is Dan's
big point: rather than trying to beat the market which is virtually
impossible, seek to do as good as the market which you can do
by buying three index mutual funds.
And those funds
are two stock funds and one bond fund and that's all investors
have to do is buy three mutual funds from major fund families,
hold onto those funds and they will be in the top five percent
of all professionally managed money based on all historical
data.
Daniel believes
average investors will always do better investing their own
money than leaving it to a stockbroker.
There are two
very significant studies that came out recently that showed
that investors who do not use brokers significantly outperform
investors who do use brokers.
At somethingyoushouldknow.net
I'm Mike Carruthers and that's Something You Should Know.
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