Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 8
my time at the Motley Fool I have been taught that I can beat the returns of the market and most mutual funds if I work at it (which I am).

This is likely the most dangerous statement yet.

Motley Fool SELLS advice just like any other financial service company, just like any broker sells stock, any agent sells a fund. They have a vested interest in making you believe you can do it better if you do it yourself.

That being said, some will (and you might). Most won't. It takes a considerable amount of time and energy to "beat the market" and unless you are willing to invest that time and energy, you are much more likely to fall below "the market" - whatever that means in this example.

Now some (like this site) will encourage you to pay someone else to do the research for you and then you follow that advice - in the end, you are still paying someone to make the decisions for you.

Again, most people do not consistently beat the market. We all strive to do so but your statement about how in your recent time at MF, you think you have the skills to stop adding to, what I assume is a diversified 401K, in order to start doing your own stock picking scares me as much (from a financial sense) as someeone saying that they want to start doing surgery after two years of premed.

I work in the financial industry selling advice and investments and even I don't feel comfortable enough with my own knowledge of the individual stock market, as well as having the time that is necessary to invest my 401k savings in individual stock. I do some stock picking in my Roth but not in the account in which I depend on my retirement savings.

Best of luck to you in your decision - but I would not be so quick to change from your 401k funds to individual stock. Maybe try it for a few years (through a bull and bear market) and see how you stack up. Unfortunately, my opinion has been tempered by the dozens of people I have met in my line of work that thought they could do the same in the late 90's by simply buying a large cap growth fund. Many are still negative almost a decade later.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.