Re: Index Funds vs Individual Funds
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What's the rationale for having both index funds and individual stocks? Either you expect your picks to beat the market or you don't. I see no strong reason for straddling the fence. Reduction of risk isn't a good argument in this case. Do you see why?
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I agree with your first point to a certain extent... pick whatever you expect to perform best. I don't really understand what you're trying to say about reduction of risk- but I think that if you truly understand the underlying business that you're invested in, and feel as though you own a part of it, it's unlikely that you'll sell if the price drops dramatically. In fact, you might see this as an opportunity to buy more
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