Sunday, May 26, 2013

You have no business investing in individual stocks in the first place

 

“So  I’m usually at a loss.  If you want to do as little as possible and you don’t mind doing average, an index fund could be a fine choice. But if you  are  capable  of  analyzing  businesses  and  willing  to  do  a  fair  amount  of  work,  selectively  picking  individual  stocks  can  be  a  viable alternative. The only problem is that most people don’t have the time or ability to analyze individual companies. If you  don’t  know  how  to  evaluate  businesses  and  project  normal  earnings  several  years  into  the  future,  you  have  no  business  investing  in individual stocks in the first place. “


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