Club Mulgoa

Monday, September 10, 2012

BHP, RIO... and CDU

I used to consider my BHP and RIO holdings to be "much bigger" than my small speculative stocks.  But while most people invest in blue chip stocks for security and stability, I went for the small ones.  Today, my PCL and PIROA have grown bigger than the 2 big boys.  And CDU has grown bigger than BHP.

Lazy fund investment managers will only invest in the big boys.  Yet, if the right stocks are chosen, it is the small caps that give better returns (with higher risk).  I am still capable of working so I am taking my chances.  But neither will I sell of my blue chips unless it is very favourable.

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