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 or any of its 30 components makes things much easier for the average market participant. Stocks such as Coca-Cola or Procter & Gamble 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.
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The article Don't Chase Exotic Investment Ideas. Stick to the Basics! originally appeared on Fool.com.Fool contributor Matt Thalman has no position in any stocks mentioned. Check back Monday through Friday as Matt explains what caused the Dow's winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter: @mthalman5513. The Motley Fool recommends Coca-Cola and Procter & Gamble. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.