73. Forget Stock Picking

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With our live shows done, we wanted to discuss a theme that came up over and over again in our listener Q&A and conversations afterwards. It’s a question both of us had when we started investing and it is one that can lead a lot of people to put investing in the ‘too hard’ basket. That question is – how do I pick the perfect stock? It’s a question that professional investors struggle to answer – even Warren Buffett had his IBM moment. Importantly, it is one that can get new investors lost in a sea of jargon, ratios and charts.

So in this episode we explain why new investors should forget stock picking and explain how achieving market average returns over a long time period is all you need.

 

In this episode you will learn:

  • Why stock picking is the wrong focus for new investors
  • The three things that investors should focus on instead – reducing the costs you can control, diversifying and asset allocation
  • How both of us think about stock picking v market average returns

Stocks and Resources Discussed:

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