Buy and hold? Not for me.
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Thread: Buy and hold? Not for me.

  1. #1
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    Buy and hold? Not for me.

    Tonight I revisited an old paper trading account that I last used in October 28 2014. It contained three investments, Ebay, USO and X. A thousand shares of each. Results ($19,760) ($23,830) and ($19,680) for a total loss of $63,270.

    So much for "buy good stocks and put them away".


  2. #2
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    Is that the right lesson?

  3. #3
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    Those are not ones I'd consider good stocks.

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  5. #4
    Senior Member tygrus's Avatar
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    Quote Originally Posted by canew90 View Post
    Those are not ones I'd consider good stocks.
    Good today, bad tomorrow, rinse repeat. Same thing.

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    This is a joke thread haha.

  7. #6
    Senior Member tygrus's Avatar
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    Anyone I have ever known who got rich did so by either owning a business or real estate or sometimes both.

  8. #7
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    Obviously, they aren't good stocks. But for some reason, in 2014 I thought they were. I was wrong. If I was smart, I would have sold them as soon as I found out I was wrong. That is the lesson. Buy and hold may work if you buy the 1 stock that goes up forever. If you buy one of the 1000 that doesn't, not so much.

    It was only a paper trading account which is why I never looked at it for 2 1/2 years.

  9. #8
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    I find buy and hold depends on when you buy as well as what you buy.

    For example, if you bought BMO stocks during 2007/8 it dropped below $25/share while paying a $2.80 dividend. Today it's worth $96.50 and pays $3.52. So, nearly 400% return, plus paying 14% annually.

    Imagine if you'd bought apple stock or google, maybe your choices are the problem, not the strategy.
    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

  10. #9
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    That's what I said. By the way BMO was on the bargain counter because everyone knew it was invested in the US subprime mess but no one knew how bad, or whether they would be bailed out. As it happened you got lucky. The problem is no one knows beforehand how these things are going to work out.

  11. #10
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    True, no one knows the future and luck plays a major role in most investments. Back in 2007, many stocks were on the bargain counter, those who had done their research and had been following the stocks were able to capitalize on the bargains while others stayed away out of fear.

    That being said, I still don't think many investment strategies are bad, they just don't work for all people. Not everyone is cut out to be a buy and hold value investor, just like not everyone is cut out to be a day trader.

    Buy and hold has worked out very well for me, but then again I use the same strategy in real estate.

    I'm not JustAGuy (without spaces), or Donald, or <insert name here>.

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