No. of Recommendations: 1
The individual stocks vs mutual funds does not have to be a black or white decision. One way to go is to put 80% in mutual funds and the other 20% in individual stocks. This gives you the best of both worlds.

Until you have a significant amount to invest, I would just stick with the mutual funds because in addition to the expense of buying and selling individual stocks, there is also the matter of your time. If you own ten stocks and you spend just an hour each quarter monitoring the companies that is forty hours per year, even at minimum wage that is the equivalent of over two hundred dollars per year worth of your labor which could be used in more profitable ways.

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