k_ETF_assetClass

I told my young colleague Dahlan that “ETF investing is much simpler than stock trading”.

• no analyst research or rating
• no need to identify defensive stocks or stable cash cows
• no worry about buying at the peak
• no worry about buying in a volatile time
• no dividend safety concern
• no dividend trec to check
• no special dividend
• no stock splits or buyback
• no dividend cut surprises … as ETF dividend is always fluctuating.
• no surprise about dividend processing
• no surprise about tax withholding in Canada dividend
• no surprise about low liquidity in pink sheets
• no pre-clearance required for most ETFs

— learning as a recreation .. is a major advantage of MOETF.  Simpler implies less learning.
We learn and grow wiser mostly from mistakes and losses.

What if your stock pick doesn’t really lose money but trails the index and most index-tracing ETFs? I guess you too learn something.

You also learn something if your pick beats the index.

I feel the more names you pick, the faster you learn. You also learn by selling, but I practice buy-n-forget

My comment to Dahlan has a hidden meaning “Similar to a bigger board game, Stock picking is more fun more anti-aging, more recreational.”