I’ve posted Entry #369 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called The Biggest Problem With Buy-and-Hold Is All the Questions It Takes Off the Table.
Juicy Excerpt: Buy-and-Hold is more than a strategy. It is a model for understanding how stock investing works. The core idea is that the future performance of stocks cannot be known. Believing that takes all sorts of questions off the table. Investors who come to believe that of course make strategic decisions based on their beliefs. And each strategic decision taken increases the investor’s emotional attachment to the underlying belief. To question the belief in one circumstance would require questioning whether many prior strategic choices were well-founded or not. Buy-and-Hold is a self-reinforcing sets of beliefs about how the stock market works.