Let's face it. Picking your own stocks is an egotistical thing to do. You're essentially betting that you, Joe Oddlot, in your boxer shorts at your laptop, can beat the biggest minds and the best money out there -- people running billion-dollar mutual funds and private money, not to mention wearing pants.

Of course, I think it is possible to win this game, but that doesn't change the fact that playing takes a great -- maybe even a silly -- degree of self-assurance. But once in a while, even this egotist goes looking for a serving of humble pie. I look to funds.

The three Bs
There are three reasons why I use funds in my own portfolio, and why I think everyone, even stock hounds, should consider them. They all start with B: ballast, bliss, and brains.

It's not a requirement for every portfolio, but investing is a psychological game, and ballast can help by smoothing out that otherwise rough market ride. If you like small caps, as I do, the weekly gyrations can be nauseating. If you like value stocks, as I also do, waiting for the Street to reward out-of-favor companies can be worse than that awful, burning, "I gotta go but I don't have time" sensation we all got while playing hide-and-seek as kids.

Big positions in some whipsawing techs and retailers have provided plenty of drama. Steadying the boat with a position in a slow, steady, growing fund has meant the swings and the sweating were never more than I could stomach.

We could all use more of that, no? Listen, I like digging into company financials and market maneuvers. It can be very rewarding to try to figure out whether Symantec (NASDAQ:SYMC) will survive the upcoming antivirus battle with Microsoft (NASDAQ:MSFT), or whether Mr. Softy's efforts to bundle paid security services into its own operating system will fall flat. I spent a lot of time last May wondering if IBM (NYSE:IBM) was really undervalued and if its "innovation ecosystem" was a real initiative or just a bunch of fluffy committee-speak. (Bill Gates' comments seemed to indicate he takes Big Blue quite seriously, and Mr. Market thinks things are good.)

And I get a real charge out of watching the dwindling stock prices at companies as varied as Yahoo! (NASDAQ:YHOO) and Ford (NYSE:F). Sure, they both face heavy competition in tough markets -- Yahoo! from Google and Microsoft, Ford from Toyota (NYSE:TM) et al. -- but both have a significant mindshare, and there is a point at which either one will be too cheap to pass up.

But that can get tiring. Really tiring. Have you ever tried to split out growth capex for Lowe's (NYSE:LOW)? With more than $3.5 billion in trailing-12-month capex, a post-growth "normalized" free cash flow could be anywhere from $650 million to $3.1 billion. How about Step 5: Coming up with a reasonable discounted cash flow valuation based on growth rates that are -- in the end -- impossible to guess? I spent a good half-hour on it this morning and ended up with a buy decision of "Who knows?" Bah!

There are times when I'd rather be doing just about anything else. (Like now, perhaps, as my wife heads out into the sunshine for a bike ride and I sit here working on a hunchback and a case of carpal tunnel syndrome.) Unfortunately, you can't make informed investment decisions if you skimp on the homework. That's why I like the option that funds offer, of relying on other people's ...

Like I said, stock picking is a bit of an egotist's game, but we'd be foolish (with a small f) if we didn't admit that other people could do at least as well as we could. No matter how smart we think we are, more brains can't hurt. That's why I don't mind the thought of handing my money over to some of the most time-tested and trusted brains in the biz. In these shops, teams of people like Chuck Royce or Bill Nygren at Oakmark work through all the details to arrive at market-beating investment decisions.

Of course, finding the right brains to give me the bliss to provide the ballast is a pretty daunting task. If you think picking stocks is hard, how about choosing funds? There are a lot more of those. Thousands more.

That's why, when it comes time for fund-finding, I don't even try to do it on my own. I check out my colleague Shannon Zimmerman's Motley Fool Champion Funds newsletter. Shannon picks only the cheapies -- the shops likely to beat the market -- and he even calls out the duds on a monthly basis.

A free one-month trial will show you the details, but here's the skinny: More than three-fourths of Shannon's funds are beating the market, and they're doing it by more than 7.5 percentage points. If he can keep that up, I may just hang up my own green eyeshade, rely on his brains, and help myself to a lot more bliss.

This article was originally published on Feb. 2, 2006. It has been updated.

Seth Jayson likes picking his own stocks, but sometimes he'd rather be riding his bike. At the time of publication, he was long Microsoft calls and common but had no position in any other company mentioned here. View his stock holdings and Fool profile here. Microsoft and Symantec are Motley Fool Inside Value recommendations. Yahoo! is a Stock Advisor choice. Fool rules arehere.