I worked with a very young guy who was extremely well read in the area of investing and personal finance. He was way ahead of the curve when it came to saving his money. He lived on a budget (unheard of for a 20 something male student) and invested every spare penny he could. The problem? He had a compulsion for picking individual stocks. He owned at least 20 and probably more individual companies. He knew that he should put his money in low cost mutual funds and let them grow over time, but he needed the excitement of picking winners and looking for the big score. Did he find winners? He had his share (as I said he was very well read and researched these for hours at a time) but overall he would have been much better off in low cost funds. It is not as fun, but you almost certainly will be better off in the long run. I have included a link that expounds on this premise and includes several examples of smart balanced portfolios with their performance over time.
http://www.marketwatch.com/News/Story/quarterly-update-lazy-portfolios-still/story.aspx?guid=%7B33325373%2DCDCA%2D4A95%2D9937%2D301D1E3E7E8D%7D
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