Set forth below is the text of a comment posted to another blog thread by a site visitor:
“…only unforeseen economic developments affect price, price changes are random. That’s by definition. That’s why the book was given the name it was given. This is the core principle of the Buy-and-Hold strategy. ”
Rob, “he who defines the question, wins the argument.” I certainly do not subscribe to YOUR definition(s) of Buy and Hold, nor of the reason one might apply it. To me, as a self-described ACTUAL Buy-n-holder, it’s this simple:
* Markets tend to go up over time. Ownership of common stocks have proven to be the best way for an average person to participate in, and profit from this ongoing economic growth.
* It has proven impossible to determine which particular stocks will outperform, or when they might do so.
* Buying, and then holding a market-basket of ALL stocks that constitute the market, on a regular and recurring basis, without respect to ‘timing,’ removes the uncertainty of guessing which particular stocks will be best, or which is the best time to purchase them.
People can refine, add gimmicks, accessories, etc, or even purposefully misconstrue (AHEM, looking at YOU, Rob!) but to me, THIS is the essence of buying and holding. So, for you to go on a decades long intense daily public jihad against those principles, and the people who espouse, and apply them, seems frankly… well, insane.
You are free to use whatever market timing scheme, or other method you chose to invest, or course. But for you to characterize the above technique as “Get Rich Quick,” just to irk people and to hopefully draw attention to yourself, shows how both intellectually feeble, and also morally challenged you are. (I dare you to publish this.)