5 Nov 2018
Trading Talk: The Buy-And-Hold Cult
If you haven't already heard of the 'buy and hold' strategy, then this is the episode for you. If you have, then this is certainly the episode for you. For a while now, we've discussed the advantages, and disadvantages, of buying stocks with a very long-term focus, as generally speaking, the market does well over time. If you had bought the index right before the Global Financial Crisis, for example, and held through the crash, then you would be well up on your initial investment. The buy-and-hold strategy.
From around 2008, we've seen a rise in the popularity of Exchange Traded Funds (ETFs), across the globe, as many people move there money from active management, into ETFs, which are a more passive investing approach. In some cases, they've done this thinking that, over time, no matter what happens, the market will always go up, and you will make money. Not all cases, but some. And this is what we discuss today.
One of our favourite investors, and finance commentators, is Jesse Fel…