what to invest in, page-100

ClarkKent...

I have this image in my head...you have your hands over your ears, repeating to yourself, "LA, LA, LA, LA,LA, LA, LA, LA...I don't want to hear".

You are heading for a major fall my friend, although something tells me you may have had one already?

Such insular thinking leads to disaster...eventually...one needs to be dynamic in a dynamic market, even with the blue caps.

Stock specific investment/trading will see you through the ups and downs...regardless of the cap size...more than enough to get you through the tough times when they come.

Your index weighted portfolio is nothing more than a litany of lost opportunity.

It is the very nature of liquid money management that helps reduce the effects of downturns...be they micro or macro...in fact I can say with confidence that the only time I have ever lost serious money has been with static investments... everything from micro through to mid and large cap stocks.

Given your portfolio (aledgedly), for you to make a reasonable living from the stocks you hold and still ensure decent capital growth, you would need over $1m invested just to reap a modest $100k or so per year pre tax.

With the cost of the money invested equating to some $60k per year, it doesn't leave much for a comfortable lifestyle now does it?

Perhaps we should increase that to $2m "invested" for such a sit and hold tragic?

Perhaps more interesting...take your BHP example back just two years further from the 1989 starting point your volunteered and hello, hello...we find ourselves smack bang in the 1987 crash.

So...given your stated returns over the 17 years (lol) from 1989...may I ask what they were for the 19 years from September 1987?

How much did you loose that year...and what effect on your compound returns?

Cheers!