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.