Sentences with phrase «return than individual stocks»

Knowing the basics of investing — that diversified funds provide a safer return than individual stocks — is also helpful.

Mutual funds in general have lower returns than individual stocks but because they are diversified among many different stocks they also tend to lose less in market downturns.

Not exact matches

The most reliable measures of individual stock valuation we've found are based on formal discounted cash flow considerations, but among publicly - available measures we've evaluated, price / revenue ratios are better correlated with actual subsequent returns than price / earnings ratios (though normalized profit margins and other factors are obviously necessary to make cross-sectional comparisons).

«The Impact of Financial Advisors on Individual Investor Portfolio Performance», based on a subset of these observations encompassing more than 193,418 monthly common stock return observations for 5,661 investors, finds that:

However, for ETF trading, our average returns are usually 5 to 10 % because ETFs are usually less volatile than individual stocks.

Returns of individual stocks in the portfolio followed the typical pattern for successful quarters — more winners than losers, and gains of greater magnitude than losses.

In other words, the individual stocks, bonds, and funds you choose or when you buy or sell is less important to your ultimate return than the percent allocated to various asset classes.

In addition, I don't necessarily believe I can generate higher returns with individual stocks than with index funds.

But our ability to predict future returns of individual stocks is limited because there are so many factors other than valuations that play a role.

The comparison in Exhibit 4 demonstrates that not only do individual stock strategies tend to be volatile, but over the long term, a consistent approach (such as the S&P BSE SENSEX) can provide consistent returns that, in some cases can be better than individual stock performance.

Based on the annualized returns in the first two statistics here, these results would seem to endorse individual stock picking rather than investing in something mundane like an S&P 500 index fund.

The utility of stock funds — By now it should be pretty apparent that it's much easier, less risky, and generally results in better returns, when the individual invests in stock funds rather than specific stocks.

I rather invest in individual stocks / options where my returns are greater than 200 % where as the S&P is 47 % since 2002.

If those $ 2000 are «funny money» that you don't mind losing but would be really excited about maybe getting 100 % return in less than 5 years, well, feel free to put them into an individual stock of an obscure small company, but be aware that you'd be gambling, not investing, and you can probably get better quotes playing Roulette.

Online Saving Accounts provide some reasonable returns (~ 5 % APY) but is there anything with better returns that is safer than individual stocks or mutual funds?

As we've covered in the past, actively managed stock portfolios where «experts» try to time the ups and downs of individual stocks get lower returns than passive index funds.

A publication by The American Association of Individual Investors shows that in holding periods ranging from 1 year to 40 years small - cap stocks generate better returns more than half the time.

The loans are often financed by high net worth individuals looking for returns better than those they could get on the stock markets.

To make the deal even sweeter, they even carry lesser of a risk than individual stocks, though that ends up reducing the return rate as well.

However, for investors willing to do the work, investing in individual stocks can lead to much higher returns than broad diversification into index funds.

Or perhaps more fairly, the conventional concern is that individual investors are too emotional to stick to a «roller coaster» plan involving mostly stocks and will panic sell during market declines, resulting in lower actual returns than if they had followed a more «balanced» plan.

In the above - mentioned list of companies, whose common stocks all are selling at meaningful discounts from NAV and which also enjoy super-strong financial positions, long - term returns to TAM investors would likely be more than satisfactory, if the individual issuers could increase their NAV after adding back dividends by at least 10 % per annum compounded.

Whether the market return is positive or negative, there will be individual stocks that do better than the average return.

After more than a decade of being part of eBay Inc., PayPal will return to the stock market as an individual company.

While many individuals conserve every penny equally, the wealthy understand that strategically investing in themselves will produce a far greater return than any stock, real - estate investment or business venture.