I’ve done it and do it. Primarily to reduce the churn and time investment of watching the stocks across different portfolio. It’s in a retirement account and treated like Ronco Rotesserie chicken. First day of the year, I make about five sells and buys, and then don’t think about it again for year. Last year, that was pretty much a 30% bump. Granted, with a DJIA index fund, it would have been closer to 26%, and a spdr around 14%, I think.
In spite of the changes in the Dow (favoring growth stocks), it’s a strategy that continues to do pretty well. YMMV because the return metrics are based on last day of the year prices and most gap on the first day. It also plays straight to the point Rich was making in his article the other weeks on valuations.
That said, you pick up a portofolio that performs slightly better than the dow on average and provides a nice little dividend.
