The Hardest Part of a Buy & Hold Strategy
Buffett is not the best example for normal investors because he has so much money it doesn’t really matter what he does with it. But one of the ways in which he built such a large net worth is through buying and then holding onto both public and private companies for a really long time.
Buy and hold is relatively easy when you’re making money. In fact, when stocks are going up, that’s typically when any type of risk management is punished. Doing nothing is the right move the majority of the time when investing but it’s far easier to sit on your hands when things are going well.
With all of the money that poured into index funds, ETFs and passive investment vehicles over the past 10-15 years, many professional investors were predicting a comeuppance when the next crash hit.