On Tue, Sep 30, 2014 at 10:46 AM, skn <[email protected]> wrote: > > 4. If you do have a little left over, buy some US stocks - I prefer ones > > like Google, Tesla, Twitter, which will do nothing but rise in the next > > 10 > > years. > > Always been conflicted by buying of individual shares. My reservation > comes from the fact that unless you are a _very_ savvy investor who has > tentacles spread in the market, there is no way armchair investors like > us can know what is going on in advance enough to buy/sell. >
I'm not savvy AT ALL but I do believe if I buy 5 or 10 stocks which I believe should do well in the next 10 years and then not worry about what happens on a daily basis, then there's enough portfolio diversification to make the impacts of black swans on any one or two less painful to the corpus - it's the same as running your own long-term mutual fund. My reasons for buying index stocks is nothing but the perception that most funds that enter a market buy stocks in the index in an attempt to beat the index - so index stocks as a whole will always be well-bought, so they typically shouldnt have too much of a long-term downside. Of course, I could be dead wrong. But this has worked well over the last 20 years, for me. My $0.02, Mahesh > > -skn- > >
