Buy & Hold Sometimes Works!

[Tim]

You have done well but it is hard to say whether your mix will be the ideal for the next 10 years. I find it easy to buy stocks but hard to know when to sell. No one rings a bell.
Fonz will be an excellent product to recommend if one has no time to do the continual research. It is biased to smaller stocks in the top 50.

[Lawso]

Thanks, Skinny. I like it, especially: ". . . set and forget portfolios tend to beat heavily traded ones." Personally, I'm trying to strike a balance between those two extremes.

[Capitalist]

POK --You should read (if you haven't) "Extraordinary Popular Delusions and the Madness of Crowds" published 1841 and covering such things as The South Sea Bubble , Mississippi Scheme and Tulip Craze.

The psychology of the sheeple has never changed and never will.

<<Investors also often fail to look at the big picture. We look at top of mind information - which is often what's performed best lately - and assume that will continue.

Unfortunately, that means investors tend to buy when prices are high and sell when they're low, rather than adopting the rational approach of doing the opposite.>>

Always has been and will ever be. Amen.

[Packersoldkidney]

Good examples are going round at the moment, too, Capitalist. Don't think that will ever change.

[Packersoldkidney]

Had to rip above post because of copyright. Sorry to those that haven't read it!

[Longtack]

There are few exceptions to the statement: "Managed Funds are managed for the benefit of the managers." E.g. Prudential returned a net 2% on their NZ Balanced fund in the latter 90's. Damned if I know what their strategy was cos' they wouldn't tell me. How long will it take TEL to reach $9.30 again? It was still being pumped as a b&h at that stage. The sp is all that matters and if it's going up wit de trend then hold & if it's going down ... shouldn't be too hard eh. My last four trades have been winners although it's taken nearly 5 years to learn and apply the discipline.

[Lawso]

Great post, aspex. Many thanx.

[thereslifeafter87]

I disagree with the part that says each entry price must be higher than the last...

If you are a Fundamental investor, and you buy into a company you think is undervalued that is in a trading range, there is no reason not to keep buying when it hits the lows of the range, you know it is going to go up eventually... When is not as important as the amount it increases by.