Comments on: Picking Stocks Is a Waste of Time http://thefinancebuff.com/2007/03/picking-stocks-is-waste-of-time.html like a friend telling you about money ... Thu, 19 Nov 2009 19:44:17 -0600 http://wordpress.org/?v=2.8 hourly 1 By: TFB http://thefinancebuff.com/2007/03/picking-stocks-is-waste-of-time.html/comment-page-1#comment-112 TFB Thu, 19 Apr 2007 18:15:00 +0000 http://blog.thefinancebuff.com/?p=87#comment-112 Anonymous,<br/><br/>Thank you for your comments, and disagreement is fine with me. I'm glad stock picking has worked out for you. In fairness to WSJ, they didn't say picking stocks is a waste of time. I did. They only reported the best and worst stocks in 2006. Good luck to your endeavor. Can you tell me which stocks are "on sale" now? Anonymous,

Thank you for your comments, and disagreement is fine with me. I'm glad stock picking has worked out for you. In fairness to WSJ, they didn't say picking stocks is a waste of time. I did. They only reported the best and worst stocks in 2006. Good luck to your endeavor. Can you tell me which stocks are "on sale" now?

]]> By: Anonymous http://thefinancebuff.com/2007/03/picking-stocks-is-waste-of-time.html/comment-page-1#comment-111 Anonymous Thu, 19 Apr 2007 04:37:00 +0000 http://blog.thefinancebuff.com/?p=87#comment-111 I disagree with your conclusion. I've made plenty of money picking individual stocks. I am a student of the Graham/Buffett school of investing. I look for solid companies that are "on sale". If you buy at a discount you reduce your downside risk. It takes more effort, but it is something I enjoy doing. If you are not keen on reading financial statements and researching companies then, by all means, buy your index fund. But don't claim that picking individual stocks is a waste of time. I think Warren Buffett's net worth shows that it is not nearly as clear-cut as you (or the WSJ) claim.<br/><br/>In addition, I'd like to ask if you are familiar with selection bias? By cherry-picking certain stocks, the WSJ (and anyone else) can make their point without actually proving anything. <br/><br/>For instance, I could prove to you that stock picking is the most lucrative thing you could have done in the past 20 years. All you had to do was invest $10,000 in Microsoft and you would be doing pretty well. That being the case: Stock picking is not a waste of time! :P<br/><br/>See how that works...<br/><br/>Hmmm, I smell another great article for WSJ here... I disagree with your conclusion. I've made plenty of money picking individual stocks. I am a student of the Graham/Buffett school of investing. I look for solid companies that are "on sale". If you buy at a discount you reduce your downside risk. It takes more effort, but it is something I enjoy doing. If you are not keen on reading financial statements and researching companies then, by all means, buy your index fund. But don't claim that picking individual stocks is a waste of time. I think Warren Buffett's net worth shows that it is not nearly as clear-cut as you (or the WSJ) claim.

In addition, I'd like to ask if you are familiar with selection bias? By cherry-picking certain stocks, the WSJ (and anyone else) can make their point without actually proving anything.

For instance, I could prove to you that stock picking is the most lucrative thing you could have done in the past 20 years. All you had to do was invest $10,000 in Microsoft and you would be doing pretty well. That being the case: Stock picking is not a waste of time! :P

See how that works…

Hmmm, I smell another great article for WSJ here…

]]> By: Finance Guy http://thefinancebuff.com/2007/03/picking-stocks-is-waste-of-time.html/comment-page-1#comment-90 Finance Guy Thu, 15 Mar 2007 04:33:00 +0000 http://blog.thefinancebuff.com/?p=87#comment-90 Index funds are the way to go.<br/><br/>On an interesting aside, a lot of research has gone into mutual funds, and a top performing mutual fund on average turns into a bottom performing mutual fund within 5-10 years of that designation. Index funds are the way to go.

On an interesting aside, a lot of research has gone into mutual funds, and a top performing mutual fund on average turns into a bottom performing mutual fund within 5-10 years of that designation.

]]> By: MoneyMan http://thefinancebuff.com/2007/03/picking-stocks-is-waste-of-time.html/comment-page-1#comment-88 MoneyMan Wed, 14 Mar 2007 03:28:00 +0000 http://blog.thefinancebuff.com/?p=87#comment-88 Great way to put it "never confuse brains with a bull market" or as I like to say "a rising tide lifts all boats" (stole that from Warren Buffett).<br/><br/>When real estate was on fire, everyone in real estate thought they were donald trump. Everyone and their mother was a landlord/flipper/broker etc...<br/><br/>When stocks were on fire, everyone and their mother was a great stock picker... <br/><br/>But when markets correct and those people lose half the money in their accounts, they disappear. Great way to put it "never confuse brains with a bull market" or as I like to say "a rising tide lifts all boats" (stole that from Warren Buffett).

When real estate was on fire, everyone in real estate thought they were donald trump. Everyone and their mother was a landlord/flipper/broker etc…

When stocks were on fire, everyone and their mother was a great stock picker…

But when markets correct and those people lose half the money in their accounts, they disappear.

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