Quality Individual Stock Investing Versus Index Investing

Abstract

Much discussion exists concerning how best to accumulate wealth resulting in financial independence. These methods include investing in properties or collectibles, but such are not realistic for the average person due to substantial costs and a lack of liquidity. The most practical way for the general public to accumulate wealth is equity stock investing. However, the correct investing strategy must be utilized. This paper develops such a strategy and then compares its results to the results of investing in a market basket of stocks through a quality index and determines which strategy works best long-term.