Comments on: Mutual Funds Versus Individual Stock Picking: Which Is Right For You? http://www.thesimpledollar.com/2007/03/30/mutual-funds-versus-individual-stock-picking-which-is-right-for-you/ Simple, applicable personal finance advice for the modern world Sun, 22 Nov 2009 01:50:09 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Bill http://www.thesimpledollar.com/2007/03/30/mutual-funds-versus-individual-stock-picking-which-is-right-for-you/comment-page-1/#comment-14982 Bill Mon, 02 Apr 2007 17:27:30 +0000 http://www.thesimpledollar.com/2007/03/30/mutual-funds-versus-individual-stock-picking-which-is-right-for-you/#comment-14982 Even actively managed mutual funds don't beat the market index, adjusting for their higher expenses (direct fees and tax consequences of higher turnover) Absent illegal insider information, picking a random stock and hoping you get lucky is a gambler's mindset, which always loses. Even actively managed mutual funds don’t beat the market index, adjusting for their higher expenses (direct fees and tax consequences of higher turnover)

Absent illegal insider information, picking a random stock and hoping you get lucky is a gambler’s mindset, which always loses.

]]> By: TJP http://www.thesimpledollar.com/2007/03/30/mutual-funds-versus-individual-stock-picking-which-is-right-for-you/comment-page-1/#comment-14481 TJP Sat, 31 Mar 2007 05:12:16 +0000 http://www.thesimpledollar.com/2007/03/30/mutual-funds-versus-individual-stock-picking-which-is-right-for-you/#comment-14481 It all depends on your goals. For me, I leave my retirement investments to the mutual fund experts because I don't feel like risking my retirement. I am risk adverse when it comes to retirement. As for my stock portfolio, I am very aggressive because I want to grow the value of my portfolio over time. This money is not needed for retirement, so I allow myself to take risks and trust my gut feelings. It's okay to buy individual stocks and/or mutual funds as long as you understand the underlying risks and responsibilities. It all depends on your goals. For me, I leave my retirement investments to the mutual fund experts because I don’t feel like risking my retirement. I am risk adverse when it comes to retirement. As for my stock portfolio, I am very aggressive because I want to grow the value of my portfolio over time. This money is not needed for retirement, so I allow myself to take risks and trust my gut feelings.

It’s okay to buy individual stocks and/or mutual funds as long as you understand the underlying risks and responsibilities.

]]> By: Duane http://www.thesimpledollar.com/2007/03/30/mutual-funds-versus-individual-stock-picking-which-is-right-for-you/comment-page-1/#comment-14409 Duane Fri, 30 Mar 2007 20:04:32 +0000 http://www.thesimpledollar.com/2007/03/30/mutual-funds-versus-individual-stock-picking-which-is-right-for-you/#comment-14409 Opinions vary on this, but I generally advise that you need around 100k to invest before one can practically diversify a stock portfolio. This another important distinction and makes the benefit of mutual funds clear -- it is easy to get diversification with small amounts of money. Opinions vary on this, but I generally advise that you need around 100k to invest before one can practically diversify a stock portfolio. This another important distinction and makes the benefit of mutual funds clear — it is easy to get diversification with small amounts of money.

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