Why a Buy and Hold and don't even bother thinking of Selling Can be Wrong Strategy for You?

Who are they? They are the small boy Value Investors who practise Buffetology.

I am NOT saying that value investing is wrong and don't EVER get me wrong. Quite the contrary - if you are the likes of Warren Buffets (and those big institutions) with very, very long holding period where the base unit of time is a Decade (A decade is a period of ten years); buy and hold "forever" strategy makes a ton of sense.

These Warren Buffets have that kind of resources to know the inner workings of a company, and can meet the Management to understand their immediate and long term prospects, assess the real ability of the management team, cognitive of the goals of the board members, their future products in the pipeline, the expected acquisitions, the competitive landscape and many more .....

Honestly, tell me what kind of resources you have to really make near close true valuation of the company's business and its future earning prospects. You are likely at your disposal for detailed analysis of the company's business and its future earning prospects through quarterly and annual reports, and probably attending AGM and asking a few questions; and most of the time the Management is very careful not to mention any undisclosed public information; otherwise, they will have to rush out a press release.

Unfortunately, many so-called small boy value investors are just trying to outguess the Market by using a value analysis with very limited resources at hands to do a really tough job. I am NOT saying they cannot succeed, of course they can definitely do well as we have heard many proven success stories; but, I am saying it is really very, very tough and demand plenty of time and effort to do a good job. BTW, you still have your day job to take care. Cheers!

You may wish to read on ...

http://createwealth8888.blogspot.com/2009/04/fundamental-analysis-working-very.html