I don't think the approach is unreasonable, and I don't think it would be much more risky then owning a basic managed fund (assuming the investor has some understanding of proper diversification). Whether it will "beat the market" is, of course, impossible to say. Things that have worked well in the past have a way of disappointing in the future. But for people who like to take the wheel and drive, this seems like a far better approach than the typical "beat the market" strategy.
Retired early, traveling perpetually.