"Buy what you know." Ever heard that investing advice?
You like fast food? Buy Yum Brands.*
You shop for paper towels? How about investing in Walmart?*
It seems to make sense. If you use something, chances are that a lot of other consumers like you use it too. But then on May 18, a lot of individual investors got burned buying something they use every 15 minutes: Facebook (or FB, as it is listed on Nasdaq.)
Maybe it will be a good investment in the long run, but tomorrow we're going to talk about whether individual investors should have been buying an individual stock like FB at all.
What's your experience?
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Why do or don't you buy individual stocks? If you do invest, how big a part of your portfolio is it?
--Stephanie Curtis, social media host
*Just examples. Please do not invest in these companies because of me. I own neither and have not done any research into their P/E ratios.