Most new era investors, just like old, are in lookout for better returns…constant endeavour of better than nifty, any particular index, mutual funds etc.
Even mutual fund investors are in constant endeavour of better performing funds etc.
In this ambition, the typical buy & hold candidates are overlooked because most of the times they would provide average or only slightly above average returns.
Best bet for those practicing buy and hold is to follow – buy, hold & buy more in situations of panic. Incremental capital may generate above average returns then, provided the company is right.
For those who believe it’s a myth or a thing of past should refrain from this strategy as most likely they would pick up wrong companies.
All old investors whom I know and who have done well is on their buy and hold strategy only. Even 1 or 2 of their picks which were right businesses did beautifully over time. Rest junk businesses were picked in endeavour of quick money. At those times selling was not at click of button so they ended up with papers of such busted companies.
For buy and hold, you need to pick up simple & lean businesses irrespective of market cap. GE is a conglomerate and although I have not studied it, became too complex with time. On the other hand, pick up chart of Johnson & Johnson or P&G which appeared in above list for 2 or 3 decades or even Hershey’s, which is not even in the list, and see their 50 or 100 years chart…you would get your answer…
Disc. Views personal & for academic purposes. I can be completely wrong in all my assessments
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