No. of Recommendations: 2
If you know nothing, either sell every position after a year or two, or use some method to pick somewhat viable firms...like continued index membership.
Regularly reconstructed dartboard portfolios work very well, and so do equal weight index funds.
I thought maybe the returns ended up being (a) the few very long-term stocks that did well plus (b) the dividends received.
If the key to getting good returns is to dump the bad shares before they go to zero, then how do you know which ones are going to zero? And how do you square this idea with the observation that stocks dumped from an index tend to do better, not worse, than the average?
dtb
