Early Retirement & Financial Independence Community - View Single Post - Swedroe comments on buying individual stocks.

saluki9 · 10-11-2005, 03:04 PM

When I first took an interest in investments, I was a freshman in high school. I was convinced that I needed to become an equity analyst. I spent 5 years in college and now 6 years on the job studying and working with stocks day and night. I also spent three years of my working life studying for the CFA exam. I can honestly say now that my experience in this business has shown me that security selection is a total waste of time (IMHO) and I no longer own any individual stocks.

I'm very thankful that I found a job working for a firm that believes in (and practices) passive management, although that is not the reason for my conversion. My own research, and that of many people smarter than I has shown me that diversification and asset allocation are where my efforts are best spent.

I don't want to criticize people who choose to buy individual stocks, to each his own.

10-11-2005, 03:04 PM	#4
saluki9 Thinks s/he gets paid by the post Join Date: Feb 2005 Posts: 1,900	When I first took an interest in investments, I was a freshman in high school. I was convinced that I needed to become an equity analyst. I spent 5 years in college and now 6 years on the job studying and working with stocks day and night. I also spent three years of my working life studying for the CFA exam. I can honestly say now that my experience in this business has shown me that security selection is a total waste of time (IMHO) and I no longer own any individual stocks. I'm very thankful that I found a job working for a firm that believes in (and practices) passive management, although that is not the reason for my conversion. My own research, and that of many people smarter than I has shown me that diversification and asset allocation are where my efforts are best spent. I don't want to criticize people who choose to buy individual stocks, to each his own.