Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: 1953hogan Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 18386  
Subject: My Definition of LTBH Date: 9/17/2000 10:19 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 6
It seems that the whole argument started in post #13125 might revolve around a "definition" for Long Term Buy and Hold.

Here's how I would define it:

LTBH is an investment philosophy in which one endeavors to select stocks that almost never have to be sold--stocks that can be held 5 years, ten years, even longer. This does not mean that once a stock is selected, one must hold it through thick and thin even if it is realized that a mistake has been made, or if the company's fundamentals show material decline. This is not to say that I would sell if a general market downturn (a bear market) causes a decline in stock prices. This IS to say that I might sell if I believe that the stock's price has declined for reasons specific to that particular stock.

So, in keeping with this philosophy, I TRY to pick stocks I don't have to sell for many years. If I fail, I might still find it prudent to sell even if the stock has only been held for a short period of time. (But, if I find that I am doing this often, I should definitely re-evaluate my stock picking methods)

I'd be very interested to know how others view this same question. How do you define LTBH? Any and all comments welcome.

hogan
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Russia Collapsing Again?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement