Are individual stocks worth picking, or should I stick to index funds?

For most people, broad low-cost index funds are the better core, and individual stock-picking is an optional hobby to keep small. The math is humbling: a large majority of professional fund managers fail to beat a simple index over time, and a handful of big winners drive most of the market's gains, which is hard to capture if you only own a few names. Picking individual stocks also concentrates risk – one bad earnings report or scandal can wipe out a position in a way a diversified fund shrugs off. If you enjoy researching companies, a reasonable rule is to keep individual picks to a small 'fun money' slice (often 5–10% of investable assets) while the bulk stays in diversified index funds. That way a wrong call costs you a little entertainment, not your retirement. Build the diversified core first at wealthserene.com/tools/portfolio-builder.