It seems one method to invest, without using much brain power, is to say, at the beginning of each month, if we have $500 to invest, then just look at the list of the best performing mutual funds over the last 10 years.
So if we already own that mutual fund, we can just buy the next highest one. Some of them are showing 25.88% per year for the past 10 years. For example:
FSELX 25.88% FSPTX 22.92%
So we can just repeat, every month or every quarter, and invest in the best performing fund over the last 10 years. Does this method work, as it seems so simple?
P.S. But at the same time, I think there also is an investment method which is to buy the highest yielding stock in Dow 30, because that means the stock is beaten down and over the long term, should bounce back. So this method is "buying the underdog" rather than "buying the heroes". If that method works, then isn't buying the heroes the exact opposite and therefore should fail?