It has been some time since I provided an update on one of my favourite US financial advice sites - FundAdvice.com
This website is published by Merriman, a financial advisory firm in the US. In the past there has been two distinct aspects of their online education assault. The first being their website - FundAdvice.com and the second their weekly audio segment - Sound Investing.
Recently the newsletters updating new additions to either component have been amalgamated into the one concise email - SoundInvesting Newsletter
If you have not already it is well worth signing up to this newsletter - click here
In the latest update they have highlighted an article published in March this year by the founder Paul Merriman. The article reminds about the principles of buy & hold and challenges readers about whether they actually are buy & holders - Ten important thoughts about buy-and-hold investing
Point #1: Buying and holding is not dead
Point #2: Many people talk about buy-and-hold without knowing exactly what it is
Point #3: Long-term investing takes a very long time
Point #4: You can buy and hold and still manage your account prudently
Point #5: Many investors think of themselves as buyers and holders but don’t act like it
Point #6: The most common reason that investors abandon a buy-and-hold approach is that they have exposed themselves to too much risk
Point #7: Some investors shouldn’t hold onto investments as long as they do
Point #8: You’re not really a buyer-and-holder if you buy a fund with a heavily traded portfolio
Point #9: Buying and holding makes the effect of a front-end load worse, not better
Point #10: Being a buy-and-hold investor may be relatively simple, but it’s not necessarily easy
I really encourage you to read this article in more detail.
Regards,
Scott
