Set forth below is an e-mail that I sent to Keith Hennessey, a member of the Financial Crisis Inquiry Commission and author of the blog at KeithHennessey.com, on January 21, 2010.
Mr. Hennessey:
My name is Rob Bennett. I write the “A Rich Life” blog (http://arichlife.passionsaving.com).
I have enjoyed your recent articles on the health care legislation. You offer an intelligent and stimulating take.
I would be grateful if you would take a few minutes to look at a Google Knol that I have written entitled “Why Buy-and-Hold Investing Can Never Work.” This Knol is the product of years of work on my part and on the part of thousands of my fellow community members in the Retire Early and Indexing discussion-board communities. The Knol addresses a matter of great public policy significance as it argues that the continued promotion of Buy-and-Hold for 30 years after the academic research showed that valuations affect long-term returns was the primary cause of the economic crisis.
I would of course be pleased to hear either positive or negative comments (the former cheer my day and the latter help me learn).
Here is a link:
Google Knol on Why Buy-and-Hold Investing Can Never Work
Thanks for listening. And I of course wish you the best of luck with your fine blog.
Rob
http://arichlife.passionsaving.com
the Cynical Investor says
Just found your blog/knol.
Unfortunately learned the hard way that buy-and-hold investing does not work.
Dialogue overheard between 2 colleagues talking about stocks.
“We are in for the long run.”
“At least this is what they want us to believe !”
Rob says
A warm welcome to the Financial Freedom Community to you, Cynical Investor.
Don’t worry about any losses you have suffered, Cynical. Protect your assets today and you will be in a good position to make it all up when we get down to those mouth-wateringly low P/E10 levels. At a P/E10 level of 8, the most likely annualized 10-year return is 15 percent real! This is a time for learning how to tap into the opportunities that will be opening up to all of us within a few years.
Rob