Buy and Hold Work?

"Buy and Hold" chart:

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A lot of pain and suffering for about 0% gain in 8 years. The cash in the mattress would perform with a much higher Sharpe's ratio.
 
You need timing and finding value to buy and hold.... and a little detail: a broad bull market in your future.

Usually the people who looks for buy and hold doesn't know shit about value, they do buy and hold because is easy to take one time call and seat to wait..

You could have bought MSFT 15 years ago and now you will be rich.
You could have MSFT, or SP, or Nasdaq on the first dip on the 2000 (thinking you're buying a dip on value stuff) and you probably are down or down vs. inflation after 7 years.

So, the points is that everything is relative on this business and there is not such stupid stuff like "buy anything,no matter where, finally it will go up because god wants to"

A little change on the long-term bias and you know what... you're stuck like a fool at highs... it happens all the time...
 
buy and hold can work but you can't be the type to keep looking at the market everyday, you have to be disciplined and also diversify, its very foolish to just be the SP500 and think you're diversified.
 
Quote from fusionz:

buy and hold can work but you can't be the type to keep looking at the market everyday, you have to be disciplined and also diversify, its very foolish to just be the SP500 and think you're diversified.
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do you mean, you buy and hold only stocks in the SP500? what about Dow Nasday are they good too?
 
Quote from chauncey1:

You could have bought MSFT 15 years ago and now you will be rich.
You could have MSFT, or SP, or Nasdaq on the first dip on the 2000 (thinking you're buying a dip on value stuff) and you probably are down or down vs. inflation after 7 years.
More...

My friend bought MSFT and now he is a millionaire
 
Quote from omcate:

Hundreds of thousands of mutual fund mangers in the past and at the present have employed the buy-and-hold strategy by picking the GOOD stocks. How come only ONE was able to beat the S & P 500 index for fifteen consecutive years ?
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Are you referencing Bill Miller and Legg Mason Value Trust? Even that can have dismal years.... ie last year...
 
Quote from fusionz:/Ming Wu

buy and hold can work ......., you have to be disciplined and also diversify, its very foolish to just be the SP500 and think you're diversified.
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It can work [''buy & hold work]'';
with a selling plan, real estate for example.

It can work ;
with a private company ,you work, dont have to sell company.

Another way it can work, have a selling plan and even if you bough MSFT or QQQQ at the all time top of the charts,it still could work anyway, if had enough money or time;
or were better diversified. Or better,all of the above.
:cool:
 
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