Sergio; I believe CB has put fourth some great individual investors advantages. Some I use to a degree some I don't. I personally don't invest in ETF, and no current mutual funds, but I believe both are a great place to find individual investment ideas. Doing this kind of gives you a glance at what the professionals are buying and holding. Personally I think ETF are better suited for one who is more of a active trader for specific sector participation. I've taken some ideas (watch list additions) from both, but not necessarily bought on those ideas. Generally you can find a mutual fund to fit most all investing metrics you might want to participate in. Those being Values of all sorts, high growth, small cap, ect ect. IMO A good place for Investors that don't know what to buy, and don't want to keep track of their investments day to day. That reasoning being they want to try an achieve a better return on their money than traditional safe investments. Witch over the historical long haul, the stock market has done.
IMO timing is a most important part. So is total return over the long haul. If you do have a diversified portfolio of stocks you manage. When to buy , and asset allocation in relation to the risk you want to take is also important. Being most of us can't nail a bottom, or sell at the top. Bearing in mind for those of us that do have portfolios and hold longer term. We know are investments will be at the mercy of the market. We sometimes can make adjust to current conditions. For those who keep a specific cash levels on the sidelines. We can dollar cost average to a certain allocation that will fall within our own risk level . That, If their is something we think will do well long term as it declines. We can also buy something that becomes a value that once wasn't. Keeping that watch list is one important newer tool for me.
I can tell you the most you can have in a single YH watch list portfolio is 200. That's because I watch more than that. <G>
I generally try to be simplistic in some of my analysis along the Buffett Lines He is my investment idol I looked up to in my early investment year, and still do. John Templeton is another. I've found throughout my investing years. Many of us individual value type investors in some form (message boards, media, or day to day conversation, will cross paths at one time or another. That being said we will agree and disagree on points, and that is a good thing, IMO.
PS >IMO-buying illiquid stocks on most metrics is only good if they get discovered. In general most brokerages keep track of current investment performance from your buy price, also your realized and unrealized gains. If you evaluate yourself based on the past performance on your schedule D over the long haul. You can make a self determination if individual investing is for you. Or at the very least a reason why changing your approach to get better. |
