There’s a force in the world that goes by many names: profit motive, self interest, entrepreneurship, or greed. Some people think it’s a good thing. Others are convinced it’s a bad thing.*
Regardless of what you call it or what you think of it, we can confidently say a few things about it:
- It is adaptable–it exists across the world in countless different social and political environments.
- It is persistent–I imagine it will stick around as long as humans do.
- To bet against it is foolish.
Entrepreneurs and businesses earn profits. That’s what they do.
Claims that “buy and hold investing is dead” are nonsense. It will always be profitable to own businesses (provided you own a sufficiently large quantity of them and you own them for a long enough period).
*In case you’re curious, I call it entrepreneurship, and I believe it has an overwhelmingly positive effect in the world–though not when left entirely unchecked.
New to Investing? See My Related Book:
 |
Investing Made Simple: Investing in Index Funds Explained in 100 Pages or Less It qualifies for free shipping on Amazon if purchased together with my other book, Taxes Made Simple.  |
"A wonderful book that tells its readers, with simple logical explanations, our Boglehead Philosophy for successful investing." - Taylor Larimore, author of The Bogleheads' Guide to Investing
{ 4 comments }
When they say buy and hold is dead, I think they meant stocks.
I don’t buy and hold I buy and rebalance
Mike. You put up that flag my friend. I am saluting!
I like the new layout.
Thank you.
Comments on this entry are closed.