Planet Money Summer School cover image

Investing 2: Index Funds & The Bet

Planet Money Summer School

CHAPTER

Why You Shouldn't Buy Individual Stocks

In the last five years, we've seen a very elect number of companies contribute disproportionately to the overall stock market. Foresight is impossible, and buying an index fund gives you that better trade off of risk and reward than picking individual stocks. You know the odds are you're not going to pick them, but you can still benefit from that if you hold enough stocks. And that's the beauty of diversification as you don't have to pick which way theyre ging to be the out performers.

00:00
Transcript
Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner