Schifrin Vs. Gasparino: Which Investors Know Best?

During a recent interview, Forbes' Matthew Schifrin told Benzinga that he encourages people to learn about the stock market and invest on their own.“I think the vast majority of professional money managers are hired without any real proof that they're good at investing,” Schifrin said. “Most of ‘em have great degrees, they went to great colleges. They come out of school and they get a job with Fidelity or one of these other big mutual fund managers, and next thing you know they're managing huge portfolios.”One week later, Benzinga interviewed Charlie Gasparino, the Senior Correspondent for Fox Business Network, who recommended that people leave their investments to the professionals.“I don't think people should be buying individual stocks,” Gasparino said. “If this insider trading thing has taught us anything, it's really telling you how rigged the game is.”Both men present some interesting viewpoints. Gasparino is worried about what will happen to the little guy if he's left to fend for himself (or chooses to do so), while Schifrin is concerned about the way money managers handle the money they're supposed to protect.But Schifrin insists that he does not mean to indict professional investors. “There are great professional investors out there, and a lot of us know who they are,” he said. “But, what I'm saying is that there's no reason why you can't become an outstanding investor on your own.”These days, Schifrin said that if you can bring in 15% a year, that's pretty good. “Most of the professionals will tell you that you should expect 6% average annual return from stocks for the foreseeable future,” he revealed. “For a lot of us that's just not going to cut it.”Gasparino, however, doesn't believe it's that simple. He says that the average little guy or little gal doesn't have the money to pay for the type of professional analysis that's needed to make an informed decision. “Without inside information, don't be fooled into thinking you can compete with the big guys,” he said. “You can't. Put your money with professional investors. Let them duke it out. Let mutual funds duke it out.”To hear more about these opposing viewpoints, don't miss Benzinga's full interviews with Matthew Schifrin and Charlie Gasparino:When The Average Joe Beats The Street - Matt Schifrin - Zing Talk Part 1When The Average Joe Beats The Street - Matt Schifrin - Zing Talk Part 2Getting Down to Business With Charlie Gasparino, Senior Correspondent with Fox Business Network - Part 1