I follow the Motley Fool’s Mechanical Investment strategies for part of my IRA portfolio.
There are literally hundreds of “screens” that can be used to adjust a portfolio annually. The one you mention is one of those screens. The Motley Fool group does lots of back-casting on various methods and posts the screen results weekly for many of them.
I like this method because I spend minimal time investing. I spend about a day a year on my portfolio and readjust every January.
It has done well for me for several years.
Also, I don’t put all of my IRA money into a single strategy. I split it up into about 5 different parts.
Various parts are:
– commodities hedge fund.
– DOW
– Motley Fool Mechanical Investing Screen
– managed by Rich
– Berkshire
– Gold ETF
– Bonds
First and foremost, I am a believer in diversification. If you don’t spend alot of time on your portfolio, there is no substitute for diversification.
