Last week I shared a little about one of my passions in life – golf, and the importance of making my four-foot putts.
When walking 18 holes of golf with three other golfers, more often than not, the topic of the stock market will be brought up, and I always find it fascinating when people talk about the individual stocks in their portfolios.
There is nothing wrong with setting aside a little bit of “fun money” to play the stock market, play the horses, play with cryptocurrencies, or in my case, wager $5 in a Nassau bet while golfing with friends.
But when it comes to individual stocks, I stick to investing, not playing. For Coffeehouse Investors, there is a big difference.
Sure, there are lots of investors who have built sizable portfolios on the backs of individual companies. It doesn’t matter to us because that’s in the past. We are focused on the future.
Investors who pick individual stocks with their serious money are almost guaranteed to underperform the overall stock market over time, as pointed out in this fascinating research paper titled, Why Indexing Works.
Is it time to make some changes in your portfolio to maximize your future returns?
Strategize an investment and financial plan with me. We will remove the gambling game from your life savings.