Relief by Indexing

My transition from being an active stock-picker to investing in low-cost index ETFs is mostly complete, and I’d have to say that it has been a relief. While I enjoy thinking about investing topics, having to track a basket of stocks can be a chore when I’d rather be doing something else.

I used to own between 10 and 20 individual stocks at any one time, and it takes time to keep up with them. For many investors, “keeping up with stocks” means watching their prices. However, to have any hope of success, stock pickers have to do much more than just stare at price graphs. They need to read company information and try to sniff out signs of changes in the odds of future company success. And they have to do this better than other investors.  Read More…


  1. 20 individual stocks is not a lot. At one point i owned about 45. It’s more the thrill of research and making the late night calls to different markets to get an early start. Its thrilling.

  2. This is why i end up buying funds and willing to pay the fees associated with having them. I too stick with low cost index etfs mostly.

  3. If it was eating up all your time the obvious thing was to get a financial advisor! That is why they were invented. Cry me a river.

  4. Stock trading is very similar to gambling. Once you catch the bug you may think you are done with it but soon enough you will be back in at full steam ahead. It sounds to me its more a break than a life changing practice.

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