How Mutual Funds Build Wealth

Stop trying to find the 'next big stock' by yourself. You’re probably going to pick a

loser. Instead, you need to understand how a Mutual Fund actually works."

"Think of a Mutual Fund like a giant party platter. Instead of you going to the store and

buying ten pounds of just carrots—which is risky if the carrots are gross—you and a hundred other

people pool your money together." A professional 'chef'—called a Fund Manager—takes that pool of money

and buys a bit of everything: some carrots, some wings, some sliders,

and those fancy little toothpicks. This is called diversification. If the carrots are bad,

it doesn’t matter, because the wings are amazing and your whole meal isn't ruined."