Author Topic: Importance of Buy and Hold  (Read 1369 times)

wageslave23

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Importance of Buy and Hold
« on: January 10, 2020, 08:10:40 AM »
This article has a cool chart illustrating why you can't put too much importance on current events
https://www.msn.com/en-us/money/savingandinvesting/stocks-are-up-495percent-in-the-past-decade-%e2%80%94-heres-why-you-probably-arent/ar-BBYKRUM

zolotiyeruki

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Re: Importance of Buy and Hold
« Reply #1 on: January 10, 2020, 12:07:50 PM »
Thanks for posting! I love the two charts the author included, because it so succinctly highlights how data can be cherrypicked to support one or another outlook.

GreenToTheCore

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Re: Importance of Buy and Hold
« Reply #2 on: January 10, 2020, 12:21:41 PM »
Great link. Media diet for the win.

Sanitary Stache

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Re: Importance of Buy and Hold
« Reply #3 on: January 10, 2020, 12:25:34 PM »
I think the author and subject are a little turned around when it comes to when to buy and when to sell.  The general theory is to buy when prices are low and sell when they are high.
Of course, we all know that you buy all the time, buy more when prices go down, and sell only what you need to stay at or below a 4% withdrawal rate. 

Valhalla

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Re: Importance of Buy and Hold
« Reply #4 on: January 10, 2020, 12:53:12 PM »
I am the ideal picture of buy and hold.  What pisses me off is when I'm forced to sell into cash and then buy in later.

For example, rolling 401k from an old employer to new one - must liquidate to cash, get a check, and the deposit to new provider.  That can take a few weeks to do. In between that time, the markets could have changed a lot, depending on the news.

Also, moving money from an old HSA investment account to a new one, same thing, must sell and then buy in later.  Weeks long process.

Not to mention all the potential expense of liquidating and buying into new funds, etc., on top of the market swings.  I wish there were more direct investment to investment rollovers, or at least more instantaneous electronic transfers that minimize the risk of taking a large amount into cash for a period of time.