I am a strong believer that most people are better off investing in index funds than trying to focus their energy on buying individual stocks. Warren Buffett agrees. He is arguably the greatest stock picker ever, but he believes that most people are better off simply investing in index funds.
That said, if you have an interest in buying individual stocks, you might want to check out this podcast. The guest is Pat Dorsey. Mr. Dorsey spent more than a decade at Morningstar. Recently he formed his own asset management company, Dorsey Asset Management.
If you liked this podcast, you might want to subscribe to Patrick O’Shaughnessy’s website: Investor Field Guide.
Again, most people are likely better off simply putting their hard-earned dollars into index funds. Even one of O’Shaughnessy’s recent guests Morgan Housel has moved his retail investing dollars into index funds. Actually, he is investing in two funds:
I’m actually now down to the Vanguard Total Stock Market Index and Berkshire Hathaway. My entire net worth is now literally a checking account, a house, and those two stocks.
This is particularly interesting given that Housel spent years as a stock picker on the Motley Fool. Now, most of his money is simply investing in Berkshire and the index. The reason I say “most” of his money is because Housel also invests in private companies which aren’t readily available to the rest of us.