I disagree with the statement that you should not buy individual stocks because others know more than you. This is only true if you buy stocks for companies outside of your area of expertise. If you work in tech you know more than the average wall street trader about tech companies especially the one you work at. If you work in medicine you know which medical insures are shit and which are great, etc.<p>Now this does not mean you should buy multiple stocks all in one sector but it does mean if you know a company well and you know they are doing great and will be doing great in the next year you should buy their stock. You should never have more than 20% of your portfolio in a single sector but it is perfectly safe to have 80% of your portfolio in vanguard funds and 20% you invest in one or two companies you truly believe in.