McMurtry Investment Report and Model Portfolios™

Index Investing vs. Buying Individual Securities

June 28, 2023

In a bear market there is nowhere to hide in an index fund

Fundamental valuation parameters that one normally uses to value individual companies are not nearly as transparent and available for index funds.

Recommendation

Use index funds for broad diversification and to invest sums of capital up to $10,000

Once you have amassed capital in excess of $10,000 start to invest in individual securities in conjunction with index funds

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