Better Buy: Cisco Systems or Every Nasdaq Stock?
It's a question investors ask themselves every day. Do I accept the higher risk linked to the bigger potential reward from buying a single stock, or do I seek safety in numbers (and potentially more moderate returns) by buying into an index?
The answer (as always) is: It depends. The market's condition, the economic backdrop, a particular company's prospects, and that stock's current price are all factors that contribute to the right answer.
To this end, if you're currently comparing networking giant Cisco Systems (NASDAQ: CSCO) to a fund mirroring a broad index like the Nasdaq Composite (NASDAQINDEX: ^IXIC), Cisco is the hands-down winner.
Source Fool.com
