Are you a tennis player?
If so, I have an offer for you.
You will play one set against an unknown opponent.
Your opponent could be anyone from a new player to someone ranked in the top 10 in the world.
Would you bet a significant amount of money on the outcome?
Of course not!
But’s that’s exactly what you’re doing when you buy a stock.
You don’t know who’s selling.
It could be a new investor or a sophisticated investment bank.
Why are you confident you know more than this unknown seller?
Think about that.
Then buy a low management fee index fund instead.