No. of Recommendations: 2
I've been looking at historical charts on the S&P 500. Starting in 1950 to 1980 there is a slow and steady rise. Then the 401k is introduced and the there is a major spike to 2000. Then we have the dot com bust, back down to 1995 prices. Then a major spike to 2007 where we get back to the 2000 highs. Then the housing bubble bursts and were back down to 1995 prices. Now over the last 4 years we have steadily climbed back to the 2000/2007 prices.

If anyone with a modicum of knowledge started buying for the long term in 1950, even with the voliatility of the last 15 years, you would still have made a bucket of money. When looking at the chart it doesn't look like what Buffet accomplished with Berkshire is a surprise. That time period was perfect for the buy and hold strategy.

I don't think we'll have that kind of market for many many years. I think we'll see more of the volatility that we've seen recently. Which will make it much harder for buy and hold types to make money...unless of course you have perfect timing for buying and selling. ;)

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