After The Financial Meltdown We’ve Seen… The Death, Near Death And The Deep Dilution That’s Occurred At So Many Of Our Once-Most-Admired Companies…
And With News Of Fresh Dividend Cuts Every Day… We Ask… “Is Buy-And-Hold Investing Dead???”
A cynic would say, “to ask a question like this is, in fact, to answer it.” But, believe it or not, we say the answer is still, decidedly, a NO!
There’s still nothing wrong with buying … and holding… as long as you know three important “tricks”…(1) When the amounts you’ve accumulated, and the profits you’ve made say “sell some”…and (2) Where you discover that you have too many of your eggs in one basket (i.e. re-deploy some of the money to other stocks)…or (3) There are other, not so hard to figure “noises”, or signs that say “sell most or all”
There is still, certainly, a lot to say about investing systematically, so that you buy MORE SHARES with the same money, when prices go down…as long as you read the preceding paragraph, that is.
We were, we must admit, almost on the other side of this argument…and almost ready to abandon our belief in the power of ‘affinity investing’ – and the value of attracting new individual investors too - as great tools for public companies to use…and where we consider ourselves to be among the leading experts… until the Bernie Madoff mega-fraud provided perhaps the biggest example of the power of ‘affinity investing’ EVER! And those full page Charles Schwab ads, noting that they’ve added 300,000 new clients in the past month sure caught our eye too.
There are many important tricks of the trade to keep in mind, however, whether you are a public company, trying to decide what to do next with your Plan…or an individual investor, asking pretty much the same thing.
Our soon to be completed Benchmarking Program will give participants the answers they need, we guarantee. There’s still a bit of time left to participate…and readers, for most of you, you really DO need to
own PLAN looks now…and what you need to be doing with it. Not knowing these answers is simply not smart in today’s environment. Give us a call if you have Qs….