I Buy Individual Stocks All the Time, but Here's Why I'm Still a Fan of Index Funds

When I first began buying stocks, I was admittedly nervous about it. I didn't want to rely on a strategy of only buying companies I'd heard of or those that were in the news a lot. Rather, I wanted my decisions to be more data driven.

To that end, I learned more about analyzing stocks. I started looking at financial information and assessing growth potential. And in time, I managed to build a stock portfolio that consists of a wide range of companies.

These days, I continue to fill my portfolio with everything from tech stocks to REITs (real estate investment trusts). But even though I'm more than comfortable with the idea of hand-picking stocks, I'm still a big proponent of investing in index funds.

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Source Fool.com