Get Rich Slowly Forum Discusses How Buy-and-Hold Caused the Economic Crisis

I recently initiated a thread at the Get Rich Slowly Forum at which we discussed how the reckless promotion of Buy-and-Hold Investing served as the primary cause of the economic crisis. Well, actually, that was just my take. Believe it or not, there were one or two community members who did not buy into this idea. Imagine!

Juicy Excerpt #1: Buy-and-Holders are going against the herd by being net sellers in bull markets and net buyers in bear markets. So how can they be blamed for the problem of stock bubbles?

Juicy Excerpt #2: It was institutional investors that presented the systemic risk. Individual investors had nothing to do with it.

Juicy Excerpt #3:  I see no evidence that Buy-and-Holder took all the oxygen out of the room and thereby made it impossible for people with other viewpoints to present their case effectively. 

Juicy Excerpt #4: There simply is no such thing as an objectively “fair” valuation for stocks, any more than there is an objectively “fair” valuation for houses, concert tickets, or William Shatner coffee mugs on eBay. The values are entirely subjective.

Juicy Excerpt #5: Rob, this isn’t the first time you’ve suggested that one of the reasons for the persistence of Buy-And-Hold investing is the profit for the “Stock Selling Industry.” I just wanted to ask you something about this: Wouldn’t your approach be even more profitable for the “Stock Selling Industry?”

Juicy Excerpt #6: I’m left to conclude you are either sincere, or insane. I’m on the fence, but I’m leaning toward sincere.


  1. Rob says

    The good thing about carnivals is that they provide a way for newcomers to get some exposure.

    The bad thing about them is that so many links are provided in one place that it would take forever to check them all out.

    I thought that J.D. handled this problem well by listing the links in order of how much he liked the underlying articles.

    I hope someday to start a Rational Investing Carnival. It would be a carnival of links to articles refuting the conventional investing advice. I believe that this is much needed today. But it would be a time-consuming venture.

    If there is someone reading these words who would like to steal the idea, please do this! It would be a big help to us all if some enterprising blogger took this on.


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