How to employ buy and hold in our overall investing philosophy?
The more you trade, the less well you do. Have a strategy and then let that strategy work.
Warren Buffett often hold stocks for years and years. But not all buy and hold strategists need to follow him.
You can choose to hold a stock for a year and then rebalances your portfolio. By doing so, you are making sure you are not holding stocks that no longer meets your criteria. While you may choose to rebalance annually, you may also rebalance your portfolio more frequently.
You are free to pick a rebalancing period - be it monthly, quarterly, semiannually, or annually. Sticking to this discipline is more important than the decision about which specific period to use.
Keep it Simple and Safe (K.I.S.S): The novice investors might expect someone emerging from a study of the different strategies and the stock market results to come out with some highly complex, esoteric formulas for how to produce the best returns. Instead, it was just the opposite.
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