Part 6/9:
Coffin navigates the debate between indexing and individual stock picking, suggesting that individuals must weigh their aptitude for research, interest, and time commitment. The vast majority may find a sounder approach lies in diversified products such as ETFs or index funds, while those invested in individual stock selection must remain cognizant of the risks involved.
He expresses skepticism about the ability to consistently beat the market, affirming that although it is possible, achieving it is far from easy. “I think there’s a lot of room to explore picking individual stocks,” he states, but he cautions against the allure of potential outsized returns without a foundational knowledge base.