Seeking Alpha

"If you buy good stocks and hold them for two years or more, you will usually come out...

"If you buy good stocks and hold them for two years or more, you will usually come out well," John Dorfman says. If that's true, then he says these four are solid buy-and-hold candidates during treacherous times: VSH, BKE, MKSI, CRI.
Comments (8)
  • I Think many said similar in 2006

     

    I'm bullish, but, don't ever buy anything with the pre-concieved notion that if you just hold it, all will be well.
    28 Mar 2011, 05:46 PM Reply Like
  • It's remarks like these from supposed "experts" that do tremendous damage to retail investors.
    28 Mar 2011, 05:59 PM Reply Like
  • Most of Dorfman's comments are just as idiotic.
    28 Mar 2011, 06:09 PM Reply Like
  • If they are so good why doesn't he own them?
    28 Mar 2011, 08:33 PM Reply Like
  • "you will usually come out well,"
    unless of course you dont.

     

    what an utterly ridiculous statement
    who is that moron?
    28 Mar 2011, 08:56 PM Reply Like
  • OMG March 2000 :o
    29 Mar 2011, 01:52 AM Reply Like
  • "If you buy good stocks and hold them for two years or more, you will usually come out well," John Dorfman says.....

     

    Where have I heard this before....

     

    xroads.virginia.edu/~hyper/allen/ch12.html

     

    "ONE DAY IN FEBRUARY, 1928, an investor asked an astute banker about the wisdom of buying common stocks. The banker shook his head. "Stocks look dangerously high to me," he said. "This bull market has been going on for a long time, and although prices have slipped a bit recently, they might easily slip a good deal more. Business is none too good. Of course if you buy the right stock you'll probably be all right in the long run and you may even make a profit. But if I were you I'd wait awhile and see what happens."

     

    And another parallel to today:

     

    "The speculative fever had been intensified by the action of the Federal Reserve System in lowering the rediscount rate from 4 per cent to 3'/2 per cent in August, 1927, and purchasing Government securities in the open market."
    29 Mar 2011, 03:01 AM Reply Like
  • I think you should always take some (at least) profits on a regular basis even if you are a long-term dividend investor. I almost never buy a stock unless it pays a decent dividend; my idea usually being to hold it at least a period of months if not years, but if the sucker shoots up 4 or 5 years worth of dividends over a short period of time (as many have in this market environment), you'd be nuts to hold all of it for 2 years or more. If you really love the company, sure, don't sell the whole position, but make sure you book at least some of the capital gains 'cause they might not be there to book a couple of days later. You can always rebuild the position when it goes back down again.

     

    Same goes for booking losses sometimes. The smartest move you can make sometimes is to sell something that's down a good bit if all indications are it's going to fall a lot farther. That's one of the most difficult things that I've had to learn (via the hard way, of course) since I started investing in stocks.

     

    This buy/hold/forget about it stuff is just crazy.
    29 Mar 2011, 08:13 AM Reply Like
DJIA (DIA) S&P 500 (SPY)