Quote:
Originally Posted by Bill Bumface
Most stocks eventually to go zero, so while taking profits early can hurt in hind sight, profit is profit.
(I'm dumbing this down pretty severely, but if you self manage your portfolio by hand picking stocks and are making money at it, you are doing better than most)
|
This is probably true numerically, because there are so many garbage companies that don't have a real business out there. The best type for a buy and hold investor though is a company with a long term competitive advantage and a strong business plan. When those stop trading, it is often because they got bought out at a premium.
Buy and hold is a terrible idea if you're going to buy zero revenue mining/crypto/weed stocks, but if you bought the banks or disney (or constellation mentioned upthread) it's probably a reasonable plan.