Buying and holding stocks for years at a time can be profitable and then again not, this goes for mutual funds and etfs as well.
Warren Buffet is the most popular buy and hold investor of all time however that’s no longer his strategy.
Let’s talk facts, Warren typically does not make day to day investment decisions any longer, most of these large buy and sell decisions are done by his two lieutenants, Ted Weschler and Todd Combs. In recent months they have sold a lot of bank stocks, sold their positions in airlines, trimmed their investment in Apple, bought a new telecommunication company, which just went IPO, and invested in a cloud computing company called Snowflake. The world is moving at a brisk pace, Berkshire is no longer buying and holding for decades. And yes you read that right Berkshire invested in an IPO.
Berkshire Hathaway’s strategy has evolved over the years, they continue to have a large cash position, trim winners that have done well, sell the stocks that have underperformed and enter new positions when the time is right.
Still think buying and holding for years is the way to go? Investors today have access to quality research and in some cases better research then the institutions. In addition, individual investors can move money much faster than large institutional buyers.
Thematic ETFs: Own an entire sector instead of individual stocks
Sector Ticker Symbol Sector Ticker Symbol
Cybersecurity BUG Technology XLK
Solar TAN Consumer Discretionary XLY
Semiconductors SMH Communication Services XLC
Dividends (monthly) JEPI Health Care XLV
Nasdaq QQQ Materials XLB
Nasdaq (leveraged) TQQQ Industrials XLI
Social Media SOCL Real Estate XLRE
S&P 500 VOO Consumer Staples XLP
Electric Vehicles IDRV Utilities XLU
Financial Tech FINX Online Betting BETZ
3D Printing PRNT Financial Sector XLF
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