How Much Of Your Invested $ In The Market Are Buy & Hold?

[steadyeddy]

BBers,

I notice that we have a diverse set of members in the forum where some trade often (and individual stock/bond holdings) while others *appear* to be more B&H

Thought I get this poll going to see where we stand.

Thanks in advance for taking a moment to share your view.

Eddy

[Capital]

I have a no more than 10% trading position. It keeps me interested in the market. For the most part management of my portfolio is rather dull and boring. As I move toward retirement I am seeking out quality dividend payers with nice growth potential. I'm also learning to manage a portfolio of Treasury and Corporate bonds. Thanks for start this steadyeddy

[roi2020]

Investors may have different views regarding what constitutes buy & hold.
Perhaps holding periods (1 yr - 3 yr, 5 yr - 10 yr, etc.) could be defined?

[steelpony10]

steadyeddy ,

    I’m pretty sure most are buy and hold investors to some extent. I don’t know how long though. My least held position is about 15 years.

     Maybe it’s just a gambling hobby. I stink at trading because of inactivity primarily. I use my daytime hours to stay outside for recreational activities and to socialize.

     I do play poker instead in bars frequented by townies located along the boat docks as the primary activity of a small community in the evening.

[steadyeddy]

May 3, 2024 22:27:55 GMT roi2020 said:

Investors may have different views regarding what constitutes buy & hold.
Perhaps holding periods (1 yr - 3 yr, 5 yr - 10 yr, etc.) could be defined?

B&H to me is at least 5 years, after which inertia sets in and the duration keeps going going going like Energizer bunny... -)

[steadyeddy]

May 3, 2024 22:31:51 GMT steelpony10 said:

steadyeddy ,

    I’m pretty sure most are buy and hold investors to some extent. I don’t know how long though. My least held position is about 15 years.

     Maybe it’s just a gambling hobby. I stink at trading because of inactivity primarily. I use my daytime hours to stay outside for recreational activities and to socialize.

     I do play poker instead in bars frequented by townies located along the boat docks as the primary activity of a small community in the evening.

steelpony10, I kinda knew your investing habits. In fact, I picked up a couple of them from you - you are one of those on the forum I draw inspiration from.👏

[Mustang]

Never a trader, I bought and sold more frequently when I was young, especially when I was transitioning my portfolio from acquisition to retirement. I moved to funds with good long-term performance. I wanted funds that had proved to be successful during both good times and bad. The absolute last thing I wanted was a fund that had stellar performance but had existed only 5 years or less. Here are a couple of examples:

1. Vanguard Wellington was started in 1929 (95 years) and has averaged an 8.29% return. investor.vanguard.com/investment-products/mutual-funds/profile/vwelx#performance-fees

2. Vanguard Wellesley Income was started in 1970 (54 years) and has averaged a 9.16% return. investor.vanguard.com/investment-products/mutual-funds/profile/vwinx#performance-fees

3. American Funds Balanced Fund was started in 1975 (49 years) and has averaged a 10.22% return. www.capitalgroup.com/individual/investments/fund/abalx

I'm a buy and hold investor only selling when I need to (RMDs). These funds have proven themselves, lasting through multiple managers and both good and bad economies. My plan is to keep them for the next 20-30 years.

[uncleharley]

None of my investments constitute a marriage proposal, although if one of them became a marriage, that would be very acceptable.

[steadyeddy]

May 4, 2024 16:59:41 GMT uncleharley said:

None of my investments constitute a marriage proposal, although if one of them became a marriage, that would be very acceptable.

Sensor of humor is appreciated..🤣

[catdog]

I chose 60%-80% based on my large (for me) CD holdings.  Only have about 6% stocks and funds right now.  CS's range from 3 months to 3 and a half years.

catdog

[yakers]

My intention (except for a trading period some years back) is to hold 'forever', pass on to sons, sell for emergencies or if circumstances warrant rebalancing stocks/bonds/cash. Trades do occur when a stock looks like an unrecoverable underperformer.

[dougj1]

Basically I am a buy and holder. Mostly dividends and interest go back to purchase original investment. Now that RMD's are a requirement some securities are transferred in kind to meet those requirements.

[Chahta]

I am a B&H investor. I buy with the intention of holding. Sometimes it doesn’t work out. If I do sell it’s a replacement strategy or an opportunity to lower my cost. I did that recently with my CEF holding. I saw an intraday 3-line break down and took advantage of it. Kind of risky but it worked. Now I’m back to holding it long term.

[racqueteer]

Boy, I honestly don't know how to respond to this one.  I don't go all in and all out, but I do switch allocations with perceived changes in risk/reward.  I have had a core of allocation funds in the past, but the lack of productivity from the bonds in recent years, coupled with the increase in short-term Treasury rates, has led me to choose dedicated equity funds and link them with USFR instead.  I also pay attention to momentum in specific areas of the market.  So, on balance, and with a nod to UH, I guess I'm not the marrying kind and prefer relationships to one-night stands, but, lately, I've been doing a lot of dating!

[steelpony10]

    Here again it comes down to definitions

    I bought and held individual stocks, a mix made up mostly of growth and dividend stocks (about 40, on reinvestment) over 30 years until I was about 10 years from retirement. I also held 5-10% in cash and a muni fund (on reinvestment) since the late 70’s. I just added new or old cash to the worse laggards each year.

     Near retirement the reason I held anything was not valid anymore, too risky and it wouldn’t fit my retirement needs. I also developed a plan for SS once I saw a closer estimate of what it would be..

      So I changed everything during the bank crisis to now more closely fit my retirement needs, basically to match my paycheck adding in enough extra for future “raises”.

     If anyone ends up in a LTC facility a third buy and hold portfolio is planned for that.

     So two buy and hold periods in a 45+ year period to date. I don’t do dividend reinvestments anymore but I do tweak any extra money back into laggards if I can drive up cash flow.

     My point is buy and hold follows your lifestyle within your personal needs and risk restrictions. It’s pliable. You don’t hold onto GE and BA because of any emotional attachment.

 uncleharley ,racqueteer ,

       Our investments have a lot less leeway to perform then a spouse. If you’ve been married awhile you know what I mean by that. 🤫

       

      

[racqueteer]

May 7, 2024 17:19:01 GMT steelpony10 said:

   
 uncleharley ,racqueteer ,

       Our investments have a lot less leeway to perform then a spouse. If you’ve been married awhile you know what I mean by that. 🤫

A little too cryptic for me to be sure of your meaning, but if my wife has taught me anything, it's that, as with the Borg, "resistance is futile" and we're in this for the long haul.  I find it saves a great deal of aggravation to simply accept that her pov is the only one which matters! 

[Capital]

May 7, 2024 20:04:00 GMT racqueteer said:

May 7, 2024 17:19:01 GMT steelpony10 said:

   
 uncleharley ,racqueteer ,

       Our investments have a lot less leeway to perform then a spouse. If you’ve been married awhile you know what I mean by that. 🤫

A little too cryptic for me to be sure of your meaning, but if my wife has taught me anything, it's that, as with the Borg, "resistance is futile" and we're in this for the long haul.  I find it saves a great deal of aggravation to simply accept that her pov is the only one which matters! 

Lucky for me the Grand Lady and I agree on about 99% of everything. I am not going to let that 1% get in the way of my enjoying the 99%. She has certainly taken me down some very hard roads to travel (kids come to mind here) -- but she has never taken me down the wrong road. I look forward to the empty nest and maybe some grand kids and to spending my remaining years in her service. May God bless her for the life she has given me. 

[steadyeddy]

May 7, 2024 23:01:02 GMT Capital said:

May 7, 2024 20:04:00 GMT racqueteer said:

A little too cryptic for me to be sure of your meaning, but if my wife has taught me anything, it's that, as with the Borg, "resistance is futile" and we're in this for the long haul.  I find it saves a great deal of aggravation to simply accept that her pov is the only one which matters! 

Lucky for me the Grand Lady and I agree on about 99% of everything. I am not going to let that 1% get in the way of my enjoying the 99%. She has certainly taken me down some very hard roads to travel (kids come to mind here) -- but she has never taken me down the wrong road. I look forward to the empty nest and maybe some grand kids and to spending my remaining years in her service. May God bless her for the life she has given me. 

Capital, timely message for the upcoming Mother's Day weekend!!

[johntaylor]

Buffett once joked that the Sistine ceiling wasn't completed in a few days, so we all have to keep working on our portfolio designs

[win1177]

Over 90% for me. I have some money sitting in “cash” right now, about 5.8% of our total portfolio, but the rest is in buy and hold positions. The cash has a pretty decent yield right now at Vanguard in their money market accounts (5.23% TTM), so comfortable with that for short term “parking”. Rest are longer term positions.

Win

[steadyeddy]

Thanks to all that responded, the poll will close at midnight tonight (not sure of time zone). I am glad to see most that voted are B&H.

[chang]

May 3, 2024 21:36:19 GMT steadyeddy said:

BBers,

I notice that we have a diverse set of members in the forum where some trade often (and individual stock/bond holdings) while others *appear* to be more B&H

Thought I get this poll going to see where we stand.

Thanks in advance for taking a moment to share your view.

Eddy

Oops I missed this post and also the poll. I would also have voted for > 90% B&H. I’m heartened to see the results. Some traders speak disparagingly about B&H and give the impression that investing is like a diode that conducts electricity in one direction: be in the market when it’s going up, and be out of the market when it’s going down. Sometimes I felt like I was in the minority “staying the course”.

[kathiel]

I'm late to this thread. Most of my investments are buy and hold, but I do have some money I "play" with. I only buy individual stocks, no mutual funds or ETFs.

[FD1000]

I'm at less than 1% B&H. I define B&H as holding a fund for several years without increasing/decreasing the % based on market conditions, except for necessary withdrawals such as living expenses.

[fishingrod]

I am 100% B&H right now. I have probably only traded 3% of my portfolio ever.

[fred495]

As a retired investor with a limited time horizon in front of me, I am "in the market when it’s going up, and out of the market when it’s going down", to quote chang. That's just common sense at my age.

Or, to quote chang again, "I don't really need a lot more money - but I certainly don't want to lose a lot. I need to remind myself to err on the side of caution."

[fishingrod]

May 10, 2024 23:39:12 GMT fred495 said:

As a retired investor with a limited time horizon in front of me, I am "in the market when it’s going up, and out of the market when it’s going down", to quote chang. That's just common sense at my age.

Or, to quote chang again, "I don't really need a lot more money - but I certainly don't want to lose a lot. I need to remind myself to err on the side of caution."

Doesn't that work out just the opposite though, more times than not when one tries to time the market. In and out is hard to do, successfully.

[fred495]

I was a B&H investor until the dotcom bubble in 2001 when I lost a significant amount of money. When I retired a few years later, I decided to change strategy and get out of the stock market rather than sit idly by watching the value of my portfolio go down. In retirement, preserving capital became more important than seeking significant returns on capital.

Hence, just looking at the big picture and the handwriting on the wall, I got out of the stock market during the financial crisis from September 2007 to April 2009, and got out again during Covid, from March 2020 until March 2023. Of course, during those periods I was invested in a variety of different types of bond OEFs as the opportunity arose. My portfolio was never inactive.

However, at my age, sleeping well at night has a higher priority than making a lot more money.

[steadyeddy]

May 11, 2024 1:55:08 GMT fred495 said:

I was a B&H investor until the dotcom bubble in 2001 when I lost a significant amount of money. When I retired a few years later, I decided to change strategy and get out of the stock market rather than sit idly by watching the value of my portfolio go down. In retirement, preserving capital became more important than seeking significant returns on capital.

Hence, just looking at the big picture and the handwriting on the wall, I got out of the stock market during the financial crisis from September 2007 to April 2009, and got out again during Covid, from March 2020 until March 2023. Of course, during those periods I was invested in a variety of different types of bond OEFs as the opportunity arose. My portfolio was never inactive.

However, at my age, sleeping well at night has a higher priority than making a lot more money.

There is something to be said about sleeping well at night as we get older... no doubt about it.

After all, investing is as much about our personal preferences and choices.

[steelpony10]

steadyeddy , fred495 ,

       I always looked at market values as not real money until I cash something in. It seems in the back of their minds so do B&H investors?

        If one thinks they “lost money” instead of “values” day after day of perpetual bad news etc. they might calculate loss of purchasing power over time instead. See what they fear most and then use that as a tool for risk management.