Investing in the stock market by selecting a handful of individual stocks is tempting for many investors who dream of making substantial gains by picking the "next big thing." But despite the allure, there are many compelling reasons why investors should think twice before diving into individual stock picking and market speculation…

More specifically, we discuss:

• The most important question for DIY investors picking stocks and funds
• What does the research say about stock picking and market speculation?
• A surprisingly small percentage of stocks generate an overwhelming majority of shareholder wealth
• Investor emotions serve as a significant roadblock in making investment decisions
• Your Family Risk Profile

 

• Resources:

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Key Moments:

(02:15) DIY Investing: Picking Individual Stocks

(04:15) Stock Pickers Typically Underperform Market. What Does The Research Say?

(10:12) Very Few Stocks Drive All of The Market’s Growth Over Time

(17:04) Emotions Make Investing Extremely Difficult

(19:33) The #1 Question You Should Ask Yourself When Picking Stocks or Timing The Markets