Originally Posted by
julian abram
Aaron, yes I'm sure there are many savvy stock investors here who are quite successful picking winner stocks and bonds. But I think in terms of the average everyday investors who would not have the time or interest to adequately analyze the financials of 10-12 companies each week, hoping to pick a portfolio of winners. I'm afraid the average investor buys stock on the recommendation of Marketwatch, Jim Cramer, etc. with no personal research into the companies he is buying. This is akin to picking your winners off the tip sheet at the racetrack. Instead of having an investment strategy it more like gambling. Certainly folks can successfully use different investing strategies. There are many investors who have been successful with the mutual fund strategy that I have suggested. Perhaps you have heard of Jack Bogle, founder of Vanguard, second largest investment company in the US. True to Vanguard investing, I have never used a "highly" commissioned sales person and only invest in low cost index funds. I have no financial credentials to give advice, my thoughts are given freely and in the spirit of sharing my investing experiences with this community. I have been investing for over 40 years and spent early years chasing the hot stocks and the hot mutual funds. Sometimes successful but many times taking a bath. My wife and I have never been high income earners but I'm very satisfied with the nice portfolio we have accumulated over years by investing a proper asset allocation in stock and bond mutual funds. My days of chasing the hot stocks are over. I learned early I was not smart enough, nor had the time to pick and follow them. My challenge was not so much when to buy a company's beaten down stock but at what point do you sell. I sleep much better not making constant buy and sell decisions.
Addeum: My thoughts are only shared in the view of long term investing, 5 years or more. If you are a day trader, short term less than a year investor, God bless you, that is a totally different ballgame more akin to the racetrack strategy. My best wishes for your success.