Is " Buy and Hold " Investing Dead ?

aryan.

Active Member
#51
such stories scare the hell out of newbie wannabe investors :)
also, Punj loyd and educomp were seen to be fundamentally strong and investor's darling stocks.
but look at their current levels
Educomp has been performing badly for the last two years on a fundamental level. It is having difficulty paying interest on its debt, which is why investors sold the shares and the share price dropped.

If newbie investors cannot read balance sheet, income statement they should not invest directly in the stock market.
 
#52
Looking at long term charts (4-10 years), several stocks in NIFTY and Midcap are showing downtrend or flat in their 4 years or longer weekly average. Two possibilities, either it will go up or go down :) With weekly averages up to a year going upwards, the 4 year average may eventually turn up. Or, short term averages may keep going up for another 2-3 years with hope of new government and may start going down towards long term (4 years) average. I think the second possibility is more likely in immediate future.

Even BNF multi-year average is 30-40% lower than its current value.


About 95% stocks fail to cash in on bull run


http://epaper.timesofindia.com/Defa...0&PageLabel=21&EntityId=Ar02106&ViewMode=HTML







Is Buy and Hold Investing dead???

I read an article in the Times of India today 10th May 2014.
My reasoning says, is if these are really fundamentally solid companies,buy and hold in them should have profited in the long run.

So the questions which are really bothering me are as follows,

1)Is "Buy and Hold" investing really dead?
2)Does the retail investor now have to think like a swing trader?
3)How to identify weakness in the companies,book profits/losses and exit at the right time?
4)For a long term investor what should be the frequency of portfolio review and portfolio churning?

Any suggestions/advice/help from seniors appreciated.
 
#53
Investors are a class by themselves. We Traders can never understand that.

My Cousin has built his portfolio from last 30 years. Your heart beat will stop if get to know his buy prices of his portfolio.

Cheers....:D
I have been following SIP route for the past 10 years in several MFs. Returns from 90% of the funds were single digit or lower single digit. Surprisingly balanced funds and specifically from DSPML and HDFCMF have given good returns around 11%. So is Pharma.
 
#55
for a layman investor the only option is to invest in sip of index funds. this is not only cost effective but also smarter way


other things to be kept in mind for any person.

1) only term insurance.

2) the age old wisdom of own house and own shop ( for businessmen) remains valid

3) some what diversification of investible surplus - in bank fd ,nsc , mis etc..
 

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