Shadow Stock Portfolio Makes the Case for Buy and Hold
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.
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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