Why Individual Stocks are Riskier than Other Investments

I could summarize this post with one sentence, seriously, you don't need read further after this,

Individual stocks present company specific risk.

Really, that's it, that's the biggest downside. I'm not saying one should NOT own any individual stocks, but if you do, realize that your entire investment could be completely wiped out. It does not matter how great or well known the company is, the whole "buy what you know" philosophy is just a clever catch phrase due to Lynch. 

Nobody knows what the future will bring.

Nobody is bulletproof.