Does long-term, buy-and-hold investing work?

If you’ve spent time on, you’ve noticed that we encourage a long-term, buy-and-hold approach. We tend to focus on buying and holding stocks for decades. Not only does that strategy allow you to avoid the financial talking heads reporting on what happened this hour on Wall Street, it’s proven to work.

According to top industry tracker Mark Hulbert, “Good old-fashioned buy-and-hold investing might not be exciting enough to interest daytraders. But it can nevertheless produce exciting longer-term returns – and beat out newfangled strategies.

According to this article on MarketWatch, the three top spots in the Hulbert Financial Digest’s five-year rankings of more than 200 investment-advisory services all buy and hold quality companies. And, by the way, according to the article, “Remarkably, all three are subscription newsletters published by the same advisory firm, The Motley Fool.”
So, yup, the strategy works and we’re sticking with it.

Another guy who believes in the strategy is Warren Buffett. Here’s a collection of some of our favorite quotes from the Oracle of Omaha himself.

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1 Comment

  1. K M Leber

    Buy and hold does not always work. In the old days it was an excellent strategy, but today you have to be watchful and eliminate steady losers. For example Union Pacific (UNP) was riding high at the first of the year 2015, and they have been on a steady downward trend since that time, In view of the current oil and coal environment, It would be expected that their downward trend will continue, and it would be prudent to sell. So what prompts H P Morgan to continue holding that stock in their conservative portfolio?