3 ms·
> I get the feeling that investing in a quality company with a solid balance sheet is the better long term risk proposition From a risk perspective, you are be
by potamic 5y ago
> I get the feeling that investing in a quality company with a solid balance sheet is the better long term risk proposition
From a risk perspective, you are better off investing in an index. Any individual company might stagnate or go bust, but an index is highly diversified and constantly rebalanced to track the best performing companies. The risk reduces even further as your horizon increases.
- zivkovicp 5y agoThat's true, and good advice. I've only used index investing to get exposure to specific markets or segments where I find it difficult to do decent research, but you're right that it's a better way to park funds over a longer term.