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 the last three 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 new strategy is having 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 and get better pricing than large institutional buyers.
Educating yourself is important. Here are three great books available on Amazon that are must reads;
This Top Fund Manager Is Up 161.91% Year To Date
Cathie Wood is one of the top fund managers of our generation and is currently the CEO and Chief Investment Officer of Ark Investment Management which oversees $50 billion in investable assets.
The fund (ticker symbol ARKK) is an ETF and focuses solely on disruptive innovation and offers investment solutions to investors seeking long-term growth in the public markets. The fund seeks to research and invest in technologically enabled innovation that cuts across economic sectors and changes the way our world works.
ARKK seeks long-term growth of capital by investing under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund’s investment theme of disruptive innovation.
Current themes include Disruptive innovation, Autonomous Tech and Robotics, Genomic Revolution, Next Generation Internet, FinTech innovation, Space Exploration, Mobility-as-a-Service, 3D Printing, Israel Innovation and Cryptocurrency.