International Index Funds
“1. Stick with the indexes
Leave the individual stock picking to gamblers and speculators. Very few people really understand how to successfully pick individual stocks, and if they do, the news that drives markets today is totally unpredictable, making individual stock picking a highly risky venture. Reams and reams of statistics prove index investing almost always outperforms the financial advisors, money managers, and stockbrokers. Stick with the indexes and you’ll likely wind up far ahead of the game. Care to speculate a bit on some individual stocks? Do it with a small portion of your money, but certainly not the bulk of it.”
Source: 10 Commandments of Investing
Sure, its boring. Sure, there’s no excitement or skill involved… But the fact of the matter is the casual investor shouldn’t be trying to pick stocks. Index funds are the way to go if you want to play in the stock market. It’s repeated over and over by people like Buffett, etc.
Now, if you want extraordinary returns, its not whether or not you should buy index funds, its which index fund from which country to buy. Remarkable chart…
