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Shadow Stock Portfolio Makes the Case for Buy and Hold

by James B. Cloonan

Shadow Stock Portfolio Makes The Case For Buy And Hold Splash image

Well, we almost made it. The Model Shadow Stock Portfolio just about reached its pre-recession high by the end of November.

The portfolio is up 33.9% year-to-date. This compares with 7.7% for the S&P 500, as measured by the Vanguard 500 Index Fund (VFINX).

As I write this the market is strengthening, and we may surpass our pre-recession and all-time high. This certainly makes a case for the “buy and hold” approach, which has been bad-mouthed a lot lately. Of course the major indexes have not recovered as yet, but they are dominated by a few dozen companies. It has always been my opinion that individual investors should not bother with the 100 largest companies.

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James B. Cloonan is founder and chairman of AAII.


Discussion

Raymond from Texas posted over 3 years ago:

How could you buy RCKY on 12/2/2010 when it was sold on 3/6/2009? This would seem to violate the rule against buying stock sold within the last two years.


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