Pick your own winning stocks

My thesis is that an individual investor can become experts and pick winning stocks as effectively as any professional just by doing a little research.

Why pay 2-3% in annual administration costs to put your money in a fund, when a private investor has just the same oppurtunities and maybe even better? By the way if you invest 10.000 $ today and you have an annual return of 10% after 20 years you will have 67,275 $, If you have an annual return of 7% you will have 38.697 $ after 20 years. Just think about that !

How can I say that an individul investor have an advantage compared to a profesional fund manager?
Well, I would say that you have access to more or less the same information, An individual is not restricted by any fund rules of branch, geography, size, float volume etc. That means they are able to think long term without a lot of restrictions. Just look at the return of most funds and you will discover that they are very market average. Hence my opinion is that any individual investor can beat the market by doing just a little research.

In the next blog I will discuss principles for picking stocks by using a fundamental principle of Value investing.