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the right way to invest blog

WHY YOU SHOULD STOP PICKING STOCKS NOW!

12/7/2014

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“Good stock picking is controlled by good luck; bad stock picking is controlled by bad luck.  Luck determines your stock picking ability.”

There is no evidence proving anyone can consistently pick stocks and outperform the market’s return over time. We all get lucky and we all get unlucky, too. Picking individual stocks is a coin flip, you will be right 50% of the time and you will be wrong 50% of the time. 

I  don’t like those odds. Some people will get lucky a few years in a row; these people attract the press and get labeled stock pickers or great mutual fund managers. But the truth is these people inevitably underperform the market average over any given length of time – history has proven this. The general consensus is that a stock picker or a fund manager needs at least 20 years of performance to remove luck and chance from their return track record before any conclusions can be drawn.
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    Michael Pensinger, CFP® is Owner and President of Pensinger Financial, Inc.

    He grew up in Park Forest, Illinois and now resides in Lemont, Illinois with his wife, two children, and two dogs. Michael is actively involved in his community; coaching kids' sports, having served as Treasurer for the Lemont Area Chamber of Commerce Board of Directors, sitting on the Board of Directors for Hope & Friendship Foundation, and volunteering for the Lemont Heritage Woodland Sanctuary Open Space Committee. Read More

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ABOUT US
A Quick Look
Core Values
Background
What it Means to be a CFP
Code of Ethics
Investment Philosophy
WHAT WE DO
Our Services 
Our Pricing 
401(k) / 403(b) Rollover
Small Business Retirement Plans
​HCBA Retirement Solution
RESOURCES
Client Access
Investment Returns
Helpful Links
Reading Recommendations
Frequently Asked Questions
EXTRAS
Videos
​The Right Way To Invest Blog

Photos
​​That Familiar Voice
DFA Youtube Channel
CONTACT
Lemont, Illinois 60439
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