Do you hold stocks for long term? Does it work?

Tysonboss1 said:

Or an index fund

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Or a Monaro 327

I hold long term shares but have implemented a capital protection strategy. I agree with the comments of active management, you can no longer put shares in the bottom draw and expect them to grow over the long term, volatility will see to that. I hold a focused investment portfolio of 5 shares all ASX 200 and all individually protected. I don’t believe in diversification theory, as we saw in the last crash it didn’t matter how much you diversified, to reduce risk, if the market is tanking you are going with it. I seek to eliminate volatility through captial protection & wont enter an investment unless the potential profit is at least 5 times what im risking.

I can sleep at night. And when the next crash comes i can take advantage of it rather than being a victim of it.

No it does not work, every company goes through an economic cycle. Buy and hold is dead now, check out market timing and trend trading strategies and stay invested as long as its moving higher. Once the trend ends hit the exits.

Some tools to get you started:

http://www.sectortimingreport.com/101-investment-market-timing-tools.html

http://www.thestreet.com/story/10914063/make-money-with-trend-trading.html

ETF Trading said:

No it does not work, every company goes through an economic cycle. Buy and hold is dead now, check out market timing and trend trading strategies and stay invested as long as its moving higher. Once the trend ends hit the exits.

Some tools to get you started:

http://www.sectortimingreport.com/101-investment-market-timing-tools.html

http://www.thestreet.com/story/10914063/make-money-with-trend-trading.html

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Yes every company goes through an economic cycle but a select few keep on producing great results all through that cycle. Look at Wollworths, Google, Apple, CSL, Cochlear, Monadelphous as a few examples.

You may be able to improve your returns by selling when indicies hit record highs and buying in corrections / sharemarket crashes but buy and hold with extraordinary companies will allways outperform the sharemarket in the long term.

Value said:

I really have to sit down and rethink my strategy.
I don't think my current portfolio will give me the return I am seeking.

http://www.nytimes.com/interactive/2...s-graphic.html

I am going to think about the increase risk (perceived or real) with smaller companies.
The difficult part is obviously identifying great companies.

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it's a myth put out by advisor's and various interest group so they can pocket your fee buying into large market cap stock.

I can tell you dozen of smaller company that has balance many times better than the top 100 and a lot less risky

and the pay off is just unheard off in the bigger companies..

spend sometimes and research small cap stocks and understand some of their business, some of them are actually top dog and can stand shoulder to shoulder with big blue chip and the reward for discovering them is many times better than bluechip.

Don't listen to rumor and bias opinions.. I can tell you most people don't think much of Radio Rental (TGA) none of the people I know think much of it when ask me what stock to buy ... when I tell them Radio Rental they just think I was joking
but if you read radio rental business model and understand it, it is superb and can deliver very handsome return....

of course there are many ****ty small caps..and this is extremely high risk... so you just have to filter out the good from the bad.....

Of course it works.
What a stupid question.

Some pretty average answers as well (I didn't call anyone stupid!!---accept the author of the stupid question.) ((Does it work?))