Buffett, Graham, Lynch, etc. all encourage people to have concentrated portfolios as long as they follow that relatively small basket of companies closely. Most people don't want to do that and they should absolutely just throw their money in indexes and not think twice. This is NOT the same as PMs that compete with S&P returns over a quarterly/annual basis, which is what people often site when they discourage individual investors to "try to beat the index." The priorities of PMs is not the same as long-term investors because they have a gun to their head every quarter to outperform.

A good balance is starting with general indexes, and then as you follow individual companies more and more and build conviction for their potential (so you don't panic sell on rips or dips - you should ONLY sell if you lose conviction for material reasons), and start DCAing into them over time. You don't have to dive hard into financial reports. Watch interviews with CEOs, make sure the business grows over time and why, think about why customers like their products anbd brand so much (even better if you like and use their products consistently), think about why their competitors aren't as good and probably won't, and make sure the product/service isn't a commodity that anyone can easily replicate quickly.

If you do not believe in any individual companies, then sure just keep your money parked in indexes. Being a more active investor (NOT a trader) is not as easy, obviously, but if you are the type of person that finds it interesting then you can absolutely generate alpha long-term because you are not chasing quarterly earnings nonsense. You will only know if you find it interesting if you actually start being more active. Give it a shot for a few months, consistently check news/updates on the companies you like on at least a weekly basis, and start small if it piques your interest.

(http://www.autoadmit.com/thread.php?thread_id=4863973&forum_id=2#42678066)

https://www.amazon.com/Investors-Manifesto-Prosperity-Armageddon-Everything/dp/1118073762

(http://www.autoadmit.com/thread.php?thread_id=4863973&forum_id=2#42678199)

Literally half the companies OP listed are dangerously risky long term holds to have the majority of your retirement portfolio in.

FB, Tesla, Costco = companies still largely run and built by their messiah-like founders. Think of the 'I will kill you' email the Costco founder sent to his CEO or COO who wanted to raise hot dog prices by a few cents. We make fun of Zuckerberg and rightfully so but if anything he's been holding the insane SJWs his company has hired back, and has tried to maintain some degree of not being batshit lib without his staff revolting. Tesla is literally just Musk running his personal fiefdom for kicks. Take out these founders and replace them with the average McKinsey guy and these companies are going downhill ASAP.

(http://www.autoadmit.com/thread.php?thread_id=4863973&forum_id=2#42678208)

Do you understand how deep you have to get into a business to be able to do this? It isn't reading the GAAP accounting. You cannot do this as a retail investor you lack the requisite access or connections.

(http://www.autoadmit.com/thread.php?thread_id=4863973&forum_id=2#42678494)

Even then, you have the same problem hedge funds have, which is understanding how the world works. You can get a thorough understanding of how a company fits in the world, but 90% of its success or failure will come from the evolution of the world itself

(http://www.autoadmit.com/thread.php?thread_id=4863973&forum_id=2#42679074)

https://fred.stlouisfed.org/series/WALCL

(http://www.autoadmit.com/thread.php?thread_id=4863973&forum_id=2#42678767)

- "studies" showing SPY outperforms hedge fund managers are just bone-picking between academics and financiers

- ETFs are fine, but they aren't the savior bogleheads claim and if you are young, you can and should investment in single names

- the two most controversial things on the internet are bodyfat % estimations and technical analysis

- there are many people here who unironically advertise their cryptocurrency investments in obscure zebra coins or whatever and hold through 40% quarterly drawdowns, with no unique knowledge or insight, yet when it comes to equities they are too scared to make a call. Zebracoin and Vanguard lol. im not hating, no investment strategy is perfect for everyone (one of my big gripes with etf fanatics), i just find this very amusing

(http://www.autoadmit.com/thread.php?thread_id=4863973&forum_id=2#42678816)

Ultimately the data shows that it is possible to regularly beat the market, and that picking stocks/trading is a skill that can be developed. If you have a high SAT score or other high IQ, you are likely to do better in the markets. If you are the average XOer gifted with a high verbal IQ and the infinite wisdom of scholarship, you are likely to beat the markets.

(http://www.autoadmit.com/thread.php?thread_id=4863973&forum_id=2#42678882)

Basically, a lot of people beat the market, but a lot of people have weird trading biases that fuck them, and trading costs destroy returns.

(http://www.autoadmit.com/thread.php?thread_id=4863973&forum_id=2#42680830)

like i don't even understand how the "conventional wisdom" that "you can't beat the market" even became a "thing" that people believe. why the fuck would this be the case, lol

it's like saying that it's not possible for the most talented poker players to have a higher expected value over the long term compared to average/above average poker players. why would anyone ever believe this

(http://www.autoadmit.com/thread.php?thread_id=4863973&forum_id=2#42680303)

We even see long-term overperformance by fund managers, but they just increase their fees to swallow the gap over time. According to EMH, the overperformance part should be impossible.

(http://www.autoadmit.com/thread.php?thread_id=4863973&forum_id=2#42680818)

lol

(http://www.autoadmit.com/thread.php?thread_id=4863973&forum_id=2#42679047)