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Buy and Hold Forever Stock Strategy

On 02/13/2012, in Investment Strategies, by Jordan Wilson

Some financial advisors advocate a buy and hold forever strategy for individual stocks.

They cite such successful investors as Warren Buffett, Benjamin Graham, and John Templeton as staunch believers in a buy and hold forever approach.

Or financial experts tout articles like “The 7 Best Stocks for a Lifetime”.

As a good friend whose birthday is this week would put it, “Complete foolishness, I say.”

And she would be right. 

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Holding on to Losing Investments?

On 10/18/2011, in Investment Concepts, by Jordan Wilson

Behavioural finance (a.k.a. behavioural investing) examines how psychological factors impact an individual’s investment decisions.

One likes to imagine that investors are rational creatures, but that is often far from the case. I find behavioural finance very interesting in how it explains certain, less logical, investing actions.

Today a look at how investors often keep their losing investments longer than they should. 

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Emotional Investing

On 09/21/2011, in Investment Strategies, by Jordan Wilson

Investment markets have resembled roller coasters in recent times.

Up, down, sideways, making many investors sick to their stomaches.

While investing is an emotional experience at any time, this turbulent period makes things even worse for lots of investors.

So what should you do? 

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I consider John Bogle to be the father of index investing. And for those who follow this blog, you know that I am a fan of passive investing utilizing index funds.

As founder of the Vanguard Group, Mr. Bogle has built a mammoth investment company over the years.

So when Mr. Bogle speaks, his comments are worth listening to. 

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SmartMoney.com recently issued a short video entitled, “Why ‘Buy & Hold’ Strategy No Longer Works”.

I am a proponent of the “buy and hold, but rebalance” approach, but thought it useful to provide a differing view. Not one I agree with, but it is always good to show all sides of a topic and let readers reach their own conclusions.

The video and my commentary are below. 

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Should investors be buying gold?

A good question for today.

An equally good question is should you rely on expert advice?

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Thoughts on Portfolio Rebalancing

On 06/24/2011, in Investment Strategies, by Jordan Wilson

The goal of portfolio rebalancing is to bring your actual asset allocation back in line with your target allocation.

Your target allocation should be based on your Investment Policy Statement (IPS). This reflects your personal circumstances, investment objectives, constraints, risk tolerance, etc.

Who you are as an investor. 

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Demand For Wealth Managers

On 05/27/2011, in Investment Strategies, by Jordan Wilson

Some interesting bits of information in this article from The Wall Street Journal.

First, it shows that individuals with over USD 1 million in bankable assets are increasing their use of professional asset managers. According to the article, 

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Buy and Hold, But Review

On 04/29/2011, in Investment Strategies, by Jordan Wilson

In general, I like the buy and hold investment strategy.

Assuming, that is, you passively invest in a well-diversified, low-cost portfolio.

But I also think that a buy and hold strategy needs a little tweaking.

One such tweak involves the need for periodic portfolio reviews.

Today we will look at frequency of reviews.  

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Buy and Hold with Individual Stocks

On 04/17/2011, in Investment Strategies, by Jordan Wilson

A long-term buy and hold strategy can work with individual, non-diversified assets. For example, shares of Cisco or Swiss Re. Or General Electric Capital bonds. Or the Japanese Yen.

But I would not recommend it.

Here is why. 

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