On Stock Picking
As a buy-and-hold, Vanguard index fund investor, I love a story like this one in Slate which confirms my bias:
Ah, New Year’s again, which means it’s time for the investment media to remind us that there are fortunes to be made in the stock market—and time for nearly every financial media organization to produce some version of “10 Hot Stocks for 2007!”
If your New Year’s resolution was simply “rebalance my portfolio of low-cost index funds,” you are displaying more investment wisdom than all of the magazines combined. Whatever you do, do not buy the 10 Stocks To Buy Now, at least not because you read about them in some magazine. If you want to buy the magazine, fine, just don’t buy the stocks.
The rest of Henry Blodget’s piece is here. It’s worth a read.