While we actively manage our investment portfolios, the long - term nature of our liabilities engenders a buy - and -
hold approach to investing.
Seeing the resiliency of the US market, it's no wonder people like Warren Buffett advocate a buy - and -
hold approach to investing, despite the painful -50 % or more drawdowns, which have occurred three times over the period shown.
Not exact matches
There is a great divide among investors about whether the proper
approach to investing is
to actively manage your money by selecting individual
holdings, or whether you should passively sit on your money by buying and
holding assets for long periods of time.
In the interview, we talk about my general
approach to investing, some thoughts on a few companies including one of my investments (Tencent
Holdings), as well as some opinions on active vs. passive
investing.
Transaction Activity One year ago we wrote that stock market strength meant that more of the Fund's
holdings were
approaching their sell targets while it was becoming more difficult
to identify dominant
investing opportunities suitable for the Fund.
One
approach to successful long - term
investing is
to hold shares for a considerable length of time (typically 10 years or more), reinvest the dividends, and periodically add
to your ownership stake as money becomes available
to you.
«The inability of so many investors and managers
to invest with a long term horizon creates the opportunity for time arbitrage - an edge in an
investing approach that requires the commitment
to long - term
holding periods» Joel Greenblatt
Buy and
hold investing is no longer as rewarding an
approach as it used
to be in decades past.
Our
approach to investing is very similar
to Connor's and we thought it would be worth looking at our
approach and portfolio
holdings through his framework.
A mindful
approach to investing advocates buying and
holding mostly low - cost and reasonably diversified index stock funds as soon as long - term money is available for
investing.
I just don't think the case exists for the widely
held superiority of dividend stocks as compared
to other stock
investing approaches.
You have
to balance the benefits of a buy - and -
hold approach — such as lower taxes and transaction costs, the historical upward bias of the market and the peace of mind that comes from removing yourself psychologically from active
investing — against the possibility of a major drawdown or a permanent loss of capital.
There are two main
approaches to bond
investing: a) Buy and
hold to maturity; and b) Buy and sell prior
to maturity (I believe this is how bond funds work).
In a passive strategy, the simplest
approach to municipal bond
investing, the goal would be
to find a bond with an attractive yield,
hold it, and collect the scheduled interest payments and the principal upon maturity.
As you also know, I am a big skeptic re the conventional
approach to Buy - and -
Hold Investing.
I see the ultimate big plus of the Valuation - Informed Indexing
approach to investing being its ability
to help investors become Buy - and -
Hold investors not just in theory but on the real true Planet Earth as well.
The reality is that only a small percentage of the universe of investors who refer
to themselves as Buy - and -
Hold investors will in the real world enjoy the benefits that flow from following this
investing approach for a long period of time.
Implements a flexible
approach to investing long and short in foreign markets, providing global exposure that may help counterbalance performance swings in conventional
holdings.
Strategies for bond
investing range from a buy - and -
hold approach to complex tactical trades involving views on inflation and interest rates.
Those of you who nominated TD Ameritrade highlighted the fact that they make it easy
to get investment help if you want it, take a simple, hand -
held approach if you're not interested in the nuts and bolts of
investing, or play a more active role if you are.
For instance, assume that your
approach to investing is
to hold 80 %, 90 % or 100 % in U.S. stocks for the next 30 years.
Regular readers of MoneySense will recognize this as a classic «Couch Potato»
approach to investing: Create a simple investible portfolio that can be
held for the long term, is broadly diversified, highly tax - efficient and yet carries minimal investment management costs.
Of course, you can always go beyond this basic
approach — say, tilt your bond
holdings more toward short - term maturities by
investing in a short - term bond fund
to get a bit more protection against the possibility of rising interest rates or add more dividend stocks
to your mix by buying a fund that specializes in shares that pay dividends.
Bond
investing strategies range from a buy - and -
hold approach to complex tactical trades involving views on inflation and interest rates.
An example of an investor who adheres
to this
approach of value
investing is Prem Watsa of Fairfax Financial
Holdings.
Passive
investing, an
approach in which investors buy a broad cross-section of the market and weight
holdings based on market capitalization, is a rules - based, disciplined strategy that strives
to obtain the same return as the broader market.
The Bottom Line Despite the nearly infinite combination of strategies that can be employed
to speculate on rising or falling rates as well as try and eliminate the key risks
to investing bonds identified above, the best
approach to investors may be
to hold a diversified mix of bond classes across a wide array of maturity dates.
And I began developing an
approach to investing that countered buy - n -
hold - n - hope for the best.
Perhaps better still, espousing tried - and - true
investing approaches that include simple concepts like long - term
holding and seeking
to minimize fees could also help.
It is wise
to take a long - term
approach when
investing in dividend stocks because most can be
held for years, provided they don't become significantly overvalued.
Mark Cuban describes this «side car»
approach to investing with an example: «If you say Jeff Bezos and Reed Hastings — those are my 2 biggest
holdings.
In the interview, we talk about my general
approach to investing, some thoughts on a few companies including one of my investments (Tencent
Holdings), as well as some opinions on active vs. passive
investing.
Now should be the time when you, Rob Bennett, admit that you were wrong and that the buy and
hold people have a much better
approach to investing than you do.
I always used
to liquidate losing
holdings as soon as they reached my stop loss, but with my ROTH IRA and dividend
investing the
approach is totally different.
DOJ's old
approach to enforcement was a no -
holds - barred, win - at - all - costs posture that drained businesses of resources needed
to invest in job creation and our economy.
I'm going
to hold cash and
invest longer term in rentals as things look like we are
approaching blood in the streets again.
This is because of my «buy - n -
hold»
approach to investing in real estate.