As an investing geek, I enjoy tracking the market's ever-changing moods. I get a kick out of watching Wall Street swoon or soar based on the latest scrap of macroeconomic data. Even better is watching the Gucci-loafer set's reaction when a company misses or exceeds earnings estimates by some marginal amount. Was the result already priced in? Was it a genuine surprise?
Inquiring minds wanna know!
It depends on who you ask. Last week, for instance, Del Monte Foods
Yet Guess?
Geek out
Still, while as an investing geek I'm intrigued by Mr. Market's mercurial ways, as an actual investor, I want nothing to do with them. Well, next to nothing anyway. I own a handful of individual stocks, but the lion's share of my nest egg is invested in Grade-A mutual funds for a simple reason: I hate losing money.
Funds aren't immune to downturns, of course, but they're a lot less risky than individual stocks, which have a bad habit of behaving irrationally. Funds, meanwhile, are more even-keeled and logical. Indeed, if you do your homework and focus on common-sense criteria like fees, strategy, and whether a fund manager invests his own moola alongside that of his shareholders, you can go a long way toward identifying those funds that can both grow and protect your nest egg.
This is the criteria I used to uncover top-notch mutual fund CGM Focus (CGMFX), which has more than doubled investors' money since 2006 -- and which has 10-year annualized returns of more than 25%! Today, this fund has positions in companies like Schlumberger
Call it a two-for-one
To be truthful, this is the premise I used during the whole time I headed up the Fool's Champion Funds investing service. And it's the premise I'll be operating under in my latest venture, Ready-Made Millionaire. This real-money portfolio will feature a strong foundation of best-of-class mutual funds, a few individual stocks, as well as an ETF -- all tailor-made for long-term money-making and market-beating results. For more information about this service, simply enter your email address in the box below.