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The Pros and Cons of Investing in a Stock Index If you lack the time and resources to research individual companies, then investing in a stock index could provide a substitute.

By Phil Town

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

In this video, Entrepreneur Network partner Phil Town about the benefits of investing with an index.

As always, Town stresses the importance of doing research before your start investing. However, if you're strapped for time and resources, you can turn to index investing. Individual stock investing triumphs over index investing, since individual investments can fluctuate but are not reliant on the market's movements.

Town points out that an especially solid company can weather even the worst financial recessions. Indices tend to perform, in the long-term, as well as the overall market. That said, there can still be benefits to investing in an index.

Click the video to hear more from Phil Town.

Related: These Tips Can Help You Discover Which Stocks to Buy

Entrepreneur Network is a premium video network providing entertainment, ewitducation and inspiration from successful entrepreneurs and thought leaders. We provide expertise and opportunities to accelerate brand growth and effectively monetize video and audio content distributed across all digital platforms for the business genre.

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Phil Town is an Investment Advisor, Hedge Fund Manager, 2x New York Times Best-Selling Author of Rule #1 & Payback Time, and Ex-Grand Canyon River Rafting Guide. Rule #1 Investing is Warren Buffett style investing, teaching you how to buy businesses on sale, with little risk and 15 percent returns. In fact, Rule #1 investing is practically immune to the ups and downs of the stock market.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

More from Phil Town

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