Why Buy and Hold Will Always Be a Sound Investing Strategy

It seems like the debate regarding the merits of the "buy-and-hold" investing strategy is alive and well. We always find these discussions amusing, because we believe that it is such a pointless discussion. There is no general argument or case that can be made to support the buy-and-hold strategy or to negate it.

The only true answer to the buy-and-hold argument is it depends on what and/or when you buy-and-hold.

• If you buy the right company at the right price, then buy-and-hold is a great strategy. 
• If you buy the wrong company at any price, then the buy-and-hold strategy is a dumb move. 
• Also, if you buy the right company at the wrong price, then buy-and-hold would once again be a bad move.

http://seekingalpha.com/article/230856-why-buy-and-hold-will-always-be-a-sound-investing-strategy?source=article_sb_picks

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Click here to see an expanded discussion on this topic:

https://myinvestingnotes.blogspot.com/2025/11/why-buy-and-hold-will-always-be-sound.html

The real strategy is: "Buy (a wonderful business at a fair price) and Hold (for as long as the business remains wonderful and the thesis is intact)."

This refined version addresses the text's concerns:

• "What you buy" is defined as a "wonderful business" with a durable competitive advantage (a wide moat), strong management, and high returns on capital.

• "When you buy" is governed by the discipline of a "fair price," providing a margin of safety.

It is a sound strategy because it harnesses the undeniable powers of compounding and behavioral discipline, but only when applied to a carefully selected portfolio of high-quality assets acquired at sensible prices.