Buy and Hold works if you understand business , management integrity etc pretty well
Promoters are classic Buy and Hold investors in many companies . Most of us are Renters – We rent the stock when we think it is cheap or is doing well and exit when we feel it is not .
The Rental period could be 1 day to couple of decades – but it is still rental as we cannot change course of firm history like promoter ( landowner ) can …
But there are stocks which can become more permanent than others –
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ESOP shares – These are often Buy and Hold for lot of people as they emotionally connect , they know the business and also people running it
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Stakeholders Shares – Suppliers / Customers holding a firm shares could be for longer duration and business connect and understanding is better and information pulses are fasters
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But the most important is Location / country you live in or want to live – If you buy land / house in that country – You can buy Country Index ETF : set of shares of companies that are considered best in that country … This elf can be more permanent than most shares in your portfolio as it is betting on country rather than company – Some countries like US / India are better bets currently because of structural reasons … If you staying in India – better to bet on ETF like NV20 , Midcap 150 , – If history is any guidance you can make 16% ++ CAGR over 10 year period and if you follow asset allocation strategy … then mix it with Gsec ETF and your portfolio CAGR can exceed 18% …
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