

The Case for Picking Stocks w/ Co-Founder of The Motley Fool
18 snips Aug 22, 2025
David Gardner, co-founder of The Motley Fool, shares his legendary stock-picking strategies that have been honed over three decades. He challenges the belief that individual stocks can't outperform the market, advocating for a blend of stock picking and index funds to maximize wealth. Gardner discusses how to identify undervalued companies and balance risk with the 'Sleep Number' concept. With insights on long-term holding and behavioral investing, he empowers both novice and seasoned investors to build a diversified and thriving portfolio.
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Index Funds Plus Selective Stock Picking
- David Gardner endorses passive index funds but argues stock picking can add outsized returns when done selectively.
- He advocates buying great companies, dollar-cost averaging, and holding rather than frequent trading.
Valuation Metrics Miss Intangible Value
- Traditional valuation metrics often miss value from visionary CEOs and strong brands.
- That omission makes transformational companies look overvalued, which can cause investors to miss big winners.
Emerging Industries Produce Asymmetric Winners
- Early exposure to emerging industries produces a few massive winners that dominate returns.
- You don't have to outpick everything; a small number of winners often drive most gains.