In the following video, Fool contributor Matt Thalman discusses the benefits of investing your money in easily understandable and well-followed ideas. An investor who gets into confusing and complicated strategies will not only have a lot less control but also a higher level of risk involved in the investment, because you won't be able to foresee any possible risks or even fully understand how the investment is performing at any given time.
But following the Dow Jones (DJINDICES: ^DJI ) or any of its 30 components makes things much easier for the average market participant. Stocks such as Coca-Cola (NYSE: KO ) or Procter & Gamble (NYSE: PG ) are both very stable companies and have easy-to-understand business models in terms of how they make money.
To learn more, check out the video.
The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.
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