Embrace the Average: Why Being Average is Perfectly Fine for Retail Investors

As retail investors, we often strive to be above average in our investments. We look for the next big thing, the hot stock that will make us rich. But in reality, being average can be just as profitable.

When it comes to investing, trying to beat the market is a difficult and often unsuccessful endeavor. In fact, the majority of professional fund managers fail to outperform the market over the long term. So instead of chasing after the elusive goal of being above average, why not embrace the average?

One way to embrace the average is by investing in index funds. These funds track a specific market index, such as the S&P 500, and provide investors with broad exposure to a range of stocks. This means that as the market goes up, so do your investments, and as it goes down, your investments will also decrease. But over the long term, index funds have consistently shown to provide solid returns for investors.

Another way to embrace the average is by focusing on low-cost, diversified investments. Instead of trying to pick individual stocks, which can be risky and time-consuming, consider investing in a mix of low-cost ETFs and mutual funds. This approach allows you to spread your investments across different industries and sectors, reducing your overall risk.

In the end, being average may not sound exciting, but when it comes to investing, it can lead to steady and reliable returns. Remember, the goal of investing is to grow your money over the long term, not to constantly chase after the next big thing. So embrace the average and let the market work for you.