The buy and hold method has been under fire lately. Why is Warren Buffett still insisting his buy and hold for life on CNBC today, even though quite a few of his long term holdings have dropped to single digit? Because the method works for him and has been worked for him for a long time.
Does it mean it will work for everybody? NO. Buy and hold sounds so easy, it seems everybody could copy his method and have the same financial success. If that is the case, then how many Warren Buffett in this world? Shouldn't it be many? I never heard of an average investor achieved the massive wealth by his method. He is the only one can do it this well.
Bolt set the 100 meter record with 9.72 seconds. Running is so easy that everybody can do. But can you do it with 9.72 seconds? Even if you eat what he eats, practise the same hours as he does, do exactly same, you are not going to run as fast as him.
The method is nothing wrong. The problem is that investors blindly follow his simple method, which can be described under 10 words "buy a good business and hold it for life". If you really think his method is this simple, making a fortune is really this simple, then who else is going to lose money?
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