This is my first post in this forum.
In the last 5 - 6 years I've been building my long term portfolio with stocks like BHP, RIO, the 4 Banks, WPL, WES, WOW, WDC, AMP, CCL, ORG, QBE and few other large companies.
Do you still believe in long term investment ( > 5 years) in stock market? The kind of investment you can buy and forget.
There have been few arguments that such investment strategy no longer works and one should not adopt that kind of thinking anymore.
I have to say I have questioned myself too. Especially with GFC and other crisis before that. Just to see my investment go up and down.
Another strategy that I read somewhere is to look and invest in smaller companies that are showing a lot of potential.
Invest in a dozen or so, hopefully some of them will perform very well.
In the long run you will do a lot better than holding "blue chips".
Once (you think) they've reached their full potential sell them and invest other smaller companies.
For example, rather than investing in BHP and RIO, I should invest in a dozen or so smaller companies instead (AGO, MGX etc just as examples)?
What do you think about long term investment?
Do you think the second method is a better way forward?