So I’m usually at a loss. If you want to do as little as possible and you don’t mind doing average, an index fund could be a fine choice. But if you are capable of analyzing businesses and willing to do a fair amount of work, selectively picking individual stocks can be a viable alternative. The only problem is that most people don’t have the time or ability to analyze individual companies. As we discussed last chapter, if you don’t know how to evaluate businesses and project normal earnings several years into the future, you have no business investing in individual stocks in the first place.
