Valuation-Informed Indexing #547: Buy-and-Hold Is More Than an Investing Strategy — It Is a Way of Thought

I’ve posted Entry #547 to my weekly Valuation-Informed Indexing column at the Value Walk site. Its called Buy-and-Hold Is More Than an Investing Strategy — It Is a Way of Thought.

Juicy Excerpt: If investors were skeptical of stocks, more skeptical than the Buy-and-Hold Model encourages them to be, they would always be investigating whether they were paying too much for the stocks that they buy. That’s what the people buying goods and services do in every other market that exists, Not stock investors. Most stock investors are assured by their belief in the Buy-and-Hold Model that buying stocks can never be a poor decision. It wouldn’t make sense for stocks to be priced so high that they were not worth buying! Stocks are a risky asset class. How could it ever be that investors would not demand a return better than the return being offered by the super-safe asset classes like Treasury Inflation-Protected Securities (TIPS), IBonds and certificates of deposit?