Buy and Forget is a type of a investment strategy amongst the many that exist. Like we have examples of cos that were part of some index but have gone bust – we have an many examples of co ls that have given astonishing returns over 15-20-30 years.
The key element to understand for Buy and Forget type investors is that during the stock selection process you will almost always have duds and the max you will lose is the entire investment in those duds so downside is limited but assuming that you also have a few winners the upside is limitless and will more than cover your mistakes.
This kind of plan requires you to actually not be impacted by movements in stock prices up or down so it’s suitable for those who have achieved some basic level of net worth to allow them to follow this path stress free. For active investors there is a constant itch to do something so maybe it’s not suitable for them.
I personally feel that it’s a great strategy to have provided that you have some understanding of how to pick long term bets combined with chart reading.
Atul Suri of Marathon Trends and mentee of RJ is one of those who has practised this and many of his videos can be accessed as well. Although he has experimented with different styles and picked one that has suited him
Best
Bheeshma
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