This level of expertise and access to this kind of information are difficult, if not impossible, to come by
for most small investors.
These dividends are,
for most small investors, rather small sums of money, but over time, when managed properly, this small amount of capital can turn into something much larger.
Fear leads us to double down on our mistakes rather than cutting our losses, to sell at the bottom and buy back at the top, and to fall into many other well - known traps that have
confounded most small investors — and not a few financial professionals.
Most smaller investors (less than $ 100k) are likely better off with index funds because of the lower trading fees.
Couch Potato investing is based on the belief that the market is smarter than any single mutual fund manager â $» and smarter than
most small investors, as well.
But
most small investors should be wary.
I think stock investing is far riskier than
most small investors believe, mainly because most small investors have been duped by clever Wall Street marketing.
Although the following framework may not be practicable for
most small investors, it does illustrate how we may think about security selection if we adopt the mindset of chief capital allocator.
For
most small investors, long - term ownership makes the most sense.