The Death of Buy-and-Hold…Greatly Exaggerated??

There’s an old saying that there’s no free lunch, but doing nothing over the last 20 years with your stock or bond investments was the blue-plate special. In its annual study of mutual fund investors, Dalbar found the average stock fund investor underperformed the S&P 500 by over 4%, and the average bond fund investor underperformed the Barclays Aggregate Bond index by over 5%.

Typical mutual fund investors own their funds for 3-4 years and then sell, repeating a cycle of underperformance. Sitting tight for 20 years was a much better strategy, even through the recessions in 2000 and 2008. So buy and hold is dead? It looks pretty good compared to buy and switch.


About Mike Wilson

Michael L. Wilson, MBA, CFP®, CRC®, is the owner of Integrity Financial Planning. Prior to founding Integrity in 1998, he worked for two years as a faculty member at the College for Financial Planning in Denver, training other financial advisors. Mike has 10 years of experience in the mutual fund industry, having worked with Fidelity Investments and Invesco Mutual Funds. He holds an MBA in Finance from Baylor University. Learn more about his work at
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