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I'm not quite sure what his problem with "buy and hold suckers" is. Benjamin Graham and Warren Buffet both built financial empires by doing just that. Peter L
by xiaoma 18y ago
I'm not quite sure what his problem with "buy and hold suckers" is. Benjamin Graham and Warren Buffet both built financial empires by doing just that. Peter Lynch didn't too too badly, either. As of now, the only investing strategy which consistently beats the market in the long run is long-term value investing. The technical traders, such as Cramer may do well over 5 or 10 year stretches, but they inevitably have their melt-downs that wipe out everything.
When the market takes a dive, "buy and hold suckers" just keep buying. This leads to dollar cost averaging benefits that lead to even greater long-term market outperformance.
Everything else in the post struck a chord with me. It seems that discipline is king.
- nostrademons 18y agoHe and Buffett/Lynch are talking past each other. Buffett's strategy has always been buy & hold, but only buy when the price is right. So in the tail end of a bull market (like what we got in 06-07, or 97-00), he just refuses to invest and holds the cash income his stocks churn off instead. So when the market turns downwards, he has plenty of cash to invest. Mark Cuban's referring to the suckers who believe in putting every dollar they have into the stock market, whether it's high or low. Those people end up with no cash when the market turns down, so they can't take advantage of the opportunity.
- fallentimes 18y agoAnd more importantly, it's _flexible_ buy & hold meaning he can sell whenever he wants. If you buy & hold with a very firm sell date you're not doing it right. It's hard to really know whether the stock market is "high" or "low" (if you did, you'd be rich) that's why it's important to invest slowly at all times (dollar cost averaging).