Why Buy & Hold Strategy Don't Really Work For S&P500

Posted by Kris | Sunday, October 30, 2011 | , | 0 comments »


I saw this chart while cleaning up my laptop. S&P 500 is a broad stock holding across industry. From the chart, it clearly shows that the buy & hold strategy don't really work if your investment is very diversified.

Diversification & buy/hold strategy which is once always touted by stock gurus don't really can out-perform selective sectorial stock picks. P.S please don't quote Warren Buffet's buy & hold strategy that made him the legendary investor. He do get a lot of lucrative and very profitable terms each time he "rescues" a company from financial distress when he became very famous. (although at the beginning, he picked very defensive companies and avoid growth companies such as the technology stocks) And which his reputation, alot of people will rush in to buy the stocks and hence indirectly causing the stock price to go up.

P.S , I just realized that this post is just there sitting in my draft.. Not sure why it did not get published.


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