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What you say about the DJIA constantly swapping out stocks is true but the same holds true for those who hold mutual funds. The managers of these funds are constantly swapping out stocks and re-allocating the industries they invest in. And they don't limit themselves to the components of the DJIA, they are looking at S&P 500 as well as many other emerging companies, markets and industries.

This is why hand picking stocks can be so tricky. Just a few decades ago, companies like Eastman Kodak, Sears & Roebuck, and Eastern Airlines might have seemed like good, solid bets for blue chip stocks that you could hold onto for a lifetime. A few decades from now, many of today's super performers could be in the dustbin of history.

You are always better off with mutual funds that have a wide diversity of stocks that are managed by professionals then you are trying to hand pick the next Microsoft or Apple on your own. That is how amateurs (and even professionals) lose most of their money in the stock market.

You are always better off with mutual funds that have a wide diversity of stocks that are managed by professionals then you are trying to hand pick the next Microsoft or Apple on your own.

Never invested in mutual funds.

Hand-picked my stocks, re-balanced my portfolio on a quarterly basis.

Quadrupled my investment in 14 years.

Regards,