I’ve posted Entry #152 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Buy-and-Hold and Valuation-Informed Indexing Cannot Co-Exist.
Juicy Excerpt: We all learn more when we have available to us smart people who challenge our thinking. I would not be happy on a discussion board populated solely by Valuation-Informed Indexers. I of course like it when people say that the strategies that I advocate possess merit. But I learn more when I am challenged than I do when I am applauded. There have been several times during the 11 years of discussion in which I have solved some riddle that had long troubled me because a sharp Buy-and-Holder posed a challenge in such a way as to help me finally see through to the core of the dispute.
There are obviously lots of people who view Buy-and-Hold as the ideal strategy. We need to have those people’s opinions reflected in all discussions of stock investing. The normal thing in our society is to permit both sides to have their say. Democrats don’t need to acknowledge that Republicans are right to acknowledge that they have a right to speak up. And Republicans don’t need to acknowledge that Democrats are right to acknowledge that they have a right to speak up. We are a diverse nation. But we are united in a belief in free speech. So the ideal would be if Buy-and-Hold and Valuation-Informed Indexing could co-exist.
I no longer believe that is possible.