Amazon, Alibaba, Mercado Libre, and Netflix are good examples of reasons not to avoid individual stocks.
More than 90% of my investments go into index funds and 10% into individual stocks, but if hindsight was 20/20 it would be 100% into my individual stocks and I’d be retired on my own private island today.
Aside from the hindsight/foresight inversion, you probably mean if your foresight was 20/20, but the rest of the market had no better foresight than they actually do.
In which case, of course, you should invest entirely in the highest rate-of-return investmentd that the rest of the market currently undervalues.
The problem is people are prone to overrate their own foresight.
More than 90% of my investments go into index funds and 10% into individual stocks, but if hindsight was 20/20 it would be 100% into my individual stocks and I’d be retired on my own private island today.