Short excerpt from a Ramit Sethi YouTube video answering whether Bank of America is a good stock deal. The speaker strongly discourages picking individual stocks, calling it a common mistake; recommends Life Cycle funds as a simple option, index funds for more control, and if one insists on stock-picking it should be a small portion of the portfolio. The excerpt references additional guidance in "chapter 7."
Is bank of America a good stock deal? Okay. If you ask this question after reading week seven, I will come over there with a bat, okay? And I won't actually hurt you, but I will take your fingers, which have been obviously going to yahoo.finance and cnbc.com and I will batter them. Because investing is not about picking individual stocks. Okay? Too many idiots think this. They buy stocks because they're low or they're high or the market should be timed. And that's not what investing is about. You will see in chapter 7 what to invest in. And a very simple sneak peek is Life Cycle funds. And if you want to have more control index funds. And if you really want to pick stocks for whatever reason, odds are you're going to lose. You can, but that's a small percentage of your portfolio.
