Thursday, January 30, 2020

Is Buy and Hold Dead

I do buy and hold. I have been investing since the 1970’s and every year lots of people say Buy and Hold is dead. I read articles on how buy and hold is dead. Basically, they say that “Times have changed” and “The Rules are different now”. I do not know how often I have heard this.

I did not believe this in the past and I do not believe it now. Yes, when the bear markets occur, the value of my stock portfolio declines. However, my dividends increase and I live on my dividends. Also, my portfolio does recover. Of course, you should not be in stocks if you cannot stand the volatility of the market.

Bear markets can be scary. In the last two bear markets the value of my portfolio fell 30%. However, I do have good dividend paying companies and waiting out the bear markets was the best thing for me to do. How small investors lose is that they get scared in bear markets and sell stocks at a low price. After the market recover, it takes them awhile to get confidence to buy again. Generally, they buy after the market has increased a lot. This is how they lose money.

On my other blog I wrote yesterday about Shaw Communications Inc (TSX-SJR.B, NYSE-SJR) ... learn more. Next, I will write about AGF Management Ltd (TSX-AGF.B, OTC-AGFMF) ... learn more on January 31, 2020 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

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