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Investing Specialists

Is Buy and Hold Dead? Users Weigh In

Hands-off strategy has behavioral benefits, but some users think hard times call for more active approaches.

Mentioned:

"Is buy and hold dead?"

I recently posed that question on the Portfolio Design/Management forum on Morningstar.com, and a several-page thread ensued. Some users argued that the concept of buying a basket of securities and battening down the hatches is a hopelessly outdated vestige of a bygone era. Others, meanwhile, view a hands-off portfolio-management approach as extremely worthwhile because it helps combat investors' tendencies to give in to their worst behavioral biases. Still others argued (very cogently, I might add ... thank you, Darwinian) that buy and hold is a hopelessly squishy term with many different meanings.

You can read the complete thread by clicking here.

Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.