$[$Related to the Chapter Opener$]$ Jack Henry and Associates is a firm located in Missouri that provides payment processing services and technology to banks and

other financial firms. According to a column in the Wall Street Joumal, If you'd invested $$1,000$ in Jack Henry stock at the closing price on Sept $30,1989,$ you'd

Does this observation make a strong argument for investors to buy individual stocks rather than index funds?

identifying very profitable stocks ahead if time pust takes practice and experience Relative to index funds, owning individual stocks is associated

with

variability in your retums which can mean larger potential profits but substantially larger potential losses

less

Related to the Chapter Opener$]$ Jack Henry and Associates is a firm located in Missouri that provides payment processing services and technology to banks and

other financial firms. According to a column in the Wall Streot Joumal, $"$If you'd invested $$1,000$ in Jack Heniry stock at the closing price on Sept $30.1989,$ you'd

have had $$2\mathrm{.}763,000$ as of Sept. $30[2019]"$ If you had instead invested $$1,000$ in the $$8.$P $500,$ it would have grown to only $$16,000$

Does this observation make a strong argument for investors to buy individual stocks rather than index funds?

Identifying very profitable stocks ahead if sime just takes practice and experience Relative to index funds, owning individual stocks is associated

with

variability in your returns which can mean larger potential profits but substantially larger potenfal losses

but substantially larger potential losses

and losses simiar to those of an hdox fund

with fittle, to no potontial losses