In last week's column I said inertia investing was dead. The old strategy of buying shares and holding them while they rose in value is no longer appropriate.
Investors have to be able to spot the winners and, just as important, know when to sell out.
That is fine for those who invest directly in shares. Brokers' commissions have fallen sharply, so active trading is not as expensive as it once was. But most private shareholders hold shares indirectly, through unit or investment trusts. Switching between funds is expensive. Nor is it easy to work out what is in your unit trust.