I know as even BHP and CBA of our time were not blue chips at the time. I have said to my wife we can keep the stocks we are holding but in future the dividends we dont need will be reinvested into ETF's that track the top companies in their sectors so like you say the up and comers get included and the under performers like the AMP's of the world get kicked to the curb.
I dont wont to be spending that much time pouring over my holdings moving forward and just let the market and time take care of it. Maybe less returns but over time I dont know of a single ETF that over the long term has shown negative returns. Even Warren B bet with a broking house that over time not a single Institution after taking into account fees taken for management would outperform a boring ETF. Over time and Warren B comfortably won that bet.
Don't get me wrong I still like to dabble and always will, after I am gone I am only going to allow kids and the future generations to access dividends from those ETF's if they want to dabble themselves but they will never be allowed to sell them for big ticket items like houses or cars. I want them to know the value of work and a portion of it will be there for them to work out which charities they want to contribute to like we do now. Its all good when you and me are running the management of the portfolio but who is to know how proficient our beneficiaries are going to be in that department, ETF are a excellent hedge in the wealth surviving another generation until someone comes along that can do what I did over my working life. Here is to hoping I am around long enough to pass on my knowledge to at least one of my children who will show some interest in shares and financial matters.
Either way I cant control their future when I am gone but I can do my best to protect them from themselves. What do they say, leave your kids enough to have a heads up in life and be comfortable but dont leave them enough to do nothing with their lives.
