Because of that, while Kirzner says that the active pursuit of outperformance for at least part of your portfolio is a worthy goal for institutions and sophisticated investors, he doesn't
think most individual investors are up to it.
Not exact matches
The problem is that
most investors think in terms of
individual securities, funds or asset classes as opposed to considering how something will impact their overall portfolio.
Personally for it not having voting rights; I don't
think the amount of shares that
most individual investors have make a difference anyway even with voting rights.
I used to
think that many (or
most)
individual investors could successfully manage their portfolios if they focused on a globally diversified, low cost, index - centric approach.
That's not to say that there aren't amazingly gifted stock pickers who will do this for a living or apply this as a core investment approach, but
most investors who aren't experts in this area should
think twice before they decide to touch
individual stocks.
I
think that's the best rebalancing option for
most individual investors.
You could also further diversify the bond portion of your portfolio by investing, say, 20 % to 30 % of your bond holdings to a total international bond index fund, although, frankly, I don't
think an international bond portfolio is anywhere close to a «must have» element for the portfolio of
most individual investors.
You would
think that a guy who a record that
most money managers can only dream about would counsel
individual investors to follow his footsteps.
Think about it this way;
most investors, professionals and
individual investors alike, lose to the market.
Investors spend a lot of time talking and
thinking about
individual stocks, yet very little time on how to integrate them into a broader portfolio in the
most efficient manner.
Interestingly enough, NPEs or «patent trolls» are not hit as frequently as one might
think, with
most of the awards being made in favor of small
individual investors.