Buy and Hold Stocks: Why This Investing Strategy Is Dangerous for Your Portfolio by Mark Skousen, Chairman, Investment U
SmartStops comment: A brief and very well written article about the hazards of Buy and Hold even if it’s a famous well known company. Some very interesting charts are used to illustrate the point.
Excerpt: The Strange Case of Three "Solid Growth" Buy and Hold Stocks
In The Money Game, Goodman identifies "three sisters of solid growth" - companies that "everyone" on Wall Street agreed were so "solid" for the long term that you could buy and take delivery of their stock certificates, deposit them in a safe deposit box, and your heirs would be wealthy beyond their dreams by simply holding on for dear life.
What were these stocks? Goodman named:
• International Business Machines (NYSE: IBM)
• Xerox (NYSE: XRX), and
• Polaroid
Here's what happened to these three "sure-fire" winners over the last couple of decades…
What's the lesson? There's no such thing as a "buy and hold" stock. You must be eternally vigilant on the fundamental outlook of your favorite investments… especially in today's three "golden growth" stocks:
Link To Full Article
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