ETFs have been widely touted as the ideal investment for many retail investors: easily accessible, low cost, low maintenance and diversification (dependent on which ETF). There’s even the famous ten-year bet by Warren Buffet between low cost, diversified ETFs and actively managed hedge funds. Buffet won. So why do I pick stocks over dumping it all in an ETF?
Beating The Market
My goal is to beat the market by more than 5% per year over ten years or more. This can only be achieved through active management of your portfolio. By managing your own portfolio, you have control over your own investments.
The statistics are against me, but that will not stop me from trying. The knowledge gained from doing research, looking through annual reports, looking at your portfolio tank through a recession, etc will help me grow as a person.
Gaining Competency
One argument for picking...