Proof That Buy and Hold Still Makes Sense

After the shock and hit from “The Great Recession”, everybody and their cousins came out and said that the “buy and hold” strategy doesn’t work and the days of 9 to 10% annual returns were over.

So, I decided to come to the defense of the buy and hold strategy once again.  Back in one of my earlier articles called, “Is Buy And Hold Investing Dead“, I stated that I was basically going to stay the course and not deviate much from that philosophy.  As a result, I’m happy to say that my Annualized Return is above 9% again (9.3% to be exact).  While this number is not quite as great as if it were 10% or slightly higher, I’m still pretty satisfied that it has jumped back up to a normal level.

It’s true, Warren Buffett is definitely not quaking in his boots (I this he averages over 20% annualized), my 401k return is still a decent enough to be satisfied with it.  In other articles I mentioned that I wanted to rebalance my portfolio more, but alas I haven’t…

So the chart below is pretty much a Buy and Hold strategy, along with the added benefit of a dollar cost averaging element in place too.  While the bull market has been running for quite a while now, I still feel confident enough to say that the basics of a buy and hold strategy has worked well enough for me personally.

BuyAndHold2014

Not much more to say, the picture above says it all up to this point.  Tomorrow, who knows…

Thanks,

Don