NY Times: Buy and Hold Does Not Work
If someone you know has the urge to go out and buy good stocks for the long run, you may want to share the following article with them. Written in this weekend’s New York Times by Floyd Norris, who is one of the better financial journalists in the world, this article, titled A 10-Year Stretch That’s Worse Than It Looks makes a strong case as to why buy and hold doesn’t work. In reality, the only people who make money from buy and hold are the fund management companies who pocket your fees every year while returning nothing in value over a decade’s period of time. Even Warren Buffet, arguably the greatest investor ever, has returned next to nothing after inflation to his investors over the past 10 years. If he can’t do it, why would anyone think anyone else can? Here’s Floyd Norris’s piece…
A 10-Year Stretch That’s Worse Than It Looks
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