If I Could Buy and Hold Only a Single Stock, This Would Be It
Regarding investment decisions, virtually all analysts will advise prospective shareholders not to hold just one stock.Even if an investment thesis appears promising, a changing marketplace or poor management decisions can derail a stock's growth trajectory. Moreover, investors cannot completely rule out the possibility of fraud, as many investors learned the hard way with Enron and WorldCom at the beginning of the century.Nonetheless, if forced to own only one stock, investors can mitigate risks with an exchange-traded fund (ETF), which owns numerous stocks. While that does not entirely protect against fraud by fund managers, investing with a group that manages several funds will likely reduce the likelihood of such an occurrence. Furthermore, amid that risk, one particular ETF could provide market-beating returns.Continue reading
Regarding investment decisions, virtually all analysts will advise prospective shareholders not to hold just one stock.
Even if an investment thesis appears promising, a changing marketplace or poor management decisions can derail a stock's growth trajectory. Moreover, investors cannot completely rule out the possibility of fraud, as many investors learned the hard way with Enron and WorldCom at the beginning of the century.
Nonetheless, if forced to own only one stock, investors can mitigate risks with an exchange-traded fund (ETF), which owns numerous stocks. While that does not entirely protect against fraud by fund managers, investing with a group that manages several funds will likely reduce the likelihood of such an occurrence. Furthermore, amid that risk, one particular ETF could provide market-beating returns.
