Mikey95112

Making the Case for Buy-and-Hold

I also like the fact that when you buy a stock that has dividend re-nvestment options, you also save by both cutting out broker commisions as well as gaining more stocks at a cheap value based on dividend distribution which also locks out the mindset of timing the market.

Is Buy and Hold Dead?

To simply say that Buy and Hold is dead is oversimplifying. For starters, what are the guidelines when you Buy and Hold? For instance, the choice of "what" you buy has importance. Meanwhile, as you hold, what are your guidelines in determining when to sell?

True, the essence of holding is to "think" long term. But, how long is long term? Look at the real estate market. By not moving and selling your home seems to constitute long term. Again, there will be differences of opinions as to how long is long term?

The bottom line is what do you do as you hold? Do you simply ignore present values until you're ready to sell? How often should one monitor present values before deciding to sell?

One of the reasons many like to follow the "dollar cost averaging" method is that it minimizes worries to constantly monitor as well as to not worry about "temporary" dips.

So no, I'd say that Buy and Hold is not totally out. Yet, at the same time, I personally would recommend some level of monitoring in order to be able to decide "when" to sell. That's the real question. Because regardless of whether a stock rises or falls, when you sell determines whether there is/isn't profit.