Dustin Wolk, a CFP and wealth advisor at Crescent Grove Advisors, laid out the big picture case when discussing the risks with picking the wrong growth stocks or realizing what can be fleeting success: “Success with individual stock picks can be rewarding; it can also breed overconfidence. A few successful winners can create the illusion of having special skill. But there’s a reason most active managers struggle to outperform over extended periods. It’s incredibly challenging to beat the market over longer market cycles. It’s prudent for young investors to build a core portfolio with investments like low-cost ETFs, supplemented by their own stock-picking. I have come across many investors who were burned by individual stock-picking, which in many cases sours them on long-term investing and creates a feeling the market is rigged against them.”
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