Skip to main content

Should I invest in individual stocks?

InvestingWarren Team

Quick answer

For most people, no. Index funds beat individual stock picking 85%+ of the time over long horizons. If you enjoy researching companies, a small allocation (under 10% of your portfolio) is a reasonable compromise.

Recommended allocation between core index funds and individual stocks.
Recommended allocation between core index funds and individual stocks.

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions. Read our disclaimers.

All questions

Get an answer built on your own numbers

Warren reads your accounts, then answers questions like this one with your real income, taxes and goals in mind.