Harold Pollack, co-author of The Index Card: Why Personal Finance Doesn’t Have to Be Complicated, says nonprofessional investors are notoriously bad at choosing individual stocks. They tend to chase after what’s shiny and new, so to speak, in the stock market. They spend a lot of time and energy researching where they should invest their money, but they are unlikely to pick the next Apple.
Pollack thinks you’re better off choosing a cheap index funds that cover a broad base of stocks. You’re likely to fare better financially, and you’ll have more time freed up for the rest of your life.