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