Watching your portfolio increase in value is a blast. But watching as stocks decline is far more instructive. The market has recently provided that unpleasant learning experience, and I learned something unexpected.
To back up a minute: In my opinion, you should always have the bulk of your portfolio in index funds. These funds give you diversification without the hassle of managing a substantial portfolio of hand-picked securities.
However, there are also good reasons to invest in individual stocks, as I’ve done with the Practical Investing portfolio. Those reasons include controlling for a specific objective, such as boosting yield or reducing risk, and learning about how markets and individual stocks work.
Esta historia es de la edición March 2019 de Kiplinger's Personal Finance.
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Esta historia es de la edición March 2019 de Kiplinger's Personal Finance.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
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