Have you ever wondered how long you should hold stocks? The average holding period in the U.S. might shock you! On this week’s episode, Josh and Austin discuss compounding, rebalancing, why account types matter and some exceptions. They end the episode with wise advice from other financial professionals. Listen today!
Main Talking Points
[0:57] – Statistics
[4:30] – Compounding
[8:50] – Why Hold Something That Isn’t Doing Well?
[12:46] – Rebalancing
[16:47] – Dad Joke of the Week
[17:20] – Account Type Matters
[20:37] – Exceptions
[22:10] – Conclusion on Holding Period
Links & Resources
053: What Is Tax-Loss Harvesting?
Invest With Us – The Invested Dads
Free Guide: 8 Timeless Principles of Investing
Social Media
Full Transcript
Intro:
Welcome to the Invested Dads Podcast, simplifying financial topics so that you can take action and make your financial situation better. Helping you to understand the current world of financial planning and investments, here are your hosts, Josh Robb and Austin Wilson.
Austin Wilson:
All right. Hey, hey, hey, welcome back to the Invested Dads Podcast, the podcast where we take you on a journey to better your financial future. Today, Josh, we are going to be talking about how long you should hold your stonks.
Josh Robb:
Well in my opinion, you should hold your stocks until they have their own head control and can support themselves. Being a dad who’s raised four kids, I know that’s about the point where holding them is not as necessary.
Austin Wilson:
That’s right. They can sit up on their own and they can do their own thing.
Josh Robb:
Yep.
[0:57] – Statistics
Austin Wilson:
That’s hilarious. Let’s kind of break this thing down by starting with some statistics.
Josh Robb:
Yeah.
Austin Wilson:
Okay?
Josh Robb:
And really, this comprised from this statistic is what made us really all up in arms on this.
Austin Wilson:
So yes, it is widely believed, it’s really hard to calculate for one, but it’s widely believed that the current holding period for a stock in the United States is under one minute.
Josh Robb:
Come again, wait a minute.
Austin Wilson:
Under one minute.
Josh Robb:
So someone buys the stock and decides I’m done with this-
Austin Wilson:
Within a minute.
Josh Robb:
Within 60 seconds.
Austin Wilson:
Yeah. That’s what is going around as the average holding period for a stock in the US.
Josh Robb:
I just have a hard time comprehending that.
Austin Wilson:
And it’s been falling for decades. So there was an interview that Senator Mark Warner, a Democrat from Virginia did, the interview is from 2016, but the trend is the same. So in 1960, the average stock holding period was eight years and four months.
Josh Robb:
Okay. That’s not bad.
Austin Wilson:
That does not sound too bad. Yeah. In 1970, that had fallen to five years and three months.
Josh Robb:
All right, little shorter.
Austin Wilson:
In 1980, that had fallen to two years and nine months. In 1990, that fell even further to two years and two months, but not that much. In 2000, that fell to one year and two months. In 2016, which is when this interview was completed, that was around four months.
Josh Robb:
So not even half a year.
Austin Wilson:
And then in 2021, it’s estimated that that’s less than a minute.
Josh Robb:
All right. And so again, if you recall back, we’ve talked about this in the past, but holding a stock in a taxable account for longer than a year gives you some tax advantages.
Austin Wilson:
True.
Josh Robb:
So we’re well short of that now being under 60 seconds.
Austin Wilson:
Oh, yeah. You’re being taxed for sure at your income tax rate. But anyway, so why?
Josh Robb:
Yes. How is that even possible?
Austin Wilson:
Well, one, the main reason that’s driving a lot of this is what’s known as high frequency trading. And essentially what this is, is computers have algorithms and things that they’re looking for and reacting to how the market’s working and all that stuff with all these different stocks. And for that matter, ETFs and bonds and all kinds of stuff.
But anyway, they are set automatically to either buy or sell when certain things reach certain thresholds based on the program that’s in them. And they can do that very quickly. And I’m talking like fractions of pennies of share movements can trigger these things, especially when you’re trading millions of shares. But it’s called high-frequency trading because things are traded at a high frequency rate. And that is definitely the biggest driver. And that’s something that it obviously was not around in the sixties, or the seventies. Even the eighties, where computers kind of came onto the scene in the investment world, really was not a big thing.
Josh Robb:
That was DOS.
Austin Wilson:
Even in the 90s, it was not as prevalent. But as we’ve gotten closer to where we are now, high-frequency trading has become a big part of the world.
Josh Robb:
So a peace of mind is probably the average holding period for a real live individual person is probably a little more than a minute.
Austin Wilson:
Absolutely.
Josh Robb:
But we have seen this trend shortening even for that, and that’s part of what we’re talking about. Okay. So then the question comes back to, okay, I think we both agree, longer than a minute is probably good to hold a stock. But how long should you hold it? What makes sense?
[4:30] – Compounding
Austin Wilson:
So we’re going to answer that question at the end. But let’s talk about some factors that go into us coming to that conclusion, which we’ll leave you with. So one of them is compounding, and Josh and I have talked many, many times about how compounding is the eighth wonder of the world. It’s Josh’s greatest favorite thing.
Josh Robb:
It’s awesome.
Austin Wilson:
Since after his kids, it’s like-
Josh Robb:
Compound is the only thing I don’t want moderation in.
Austin Wilson:
You want excess of compounding.
Josh Robb:
I want more compounding.
Austin Wilson:
But yes, you have to let your investments have time to work for you.
Josh Robb:
Yes.
Austin Wilson:
And obviously, yes, I think you hit the nail right on the head. Average investor versus all the stocks in the available investment universe, we’re looking at the whole universe. That’s not the average investor holding period, but it makes for a great statistic that maybe it makes you think. Right?
Josh Robb:
It does.
Austin Wilson:
But in general, yes, we’ve seen that fall. And even for the average investor, that would have fallen in that time. Another couple things that have aided this, that I actually forgot to mention, is we didn’t always have this ability to trade easily and quickly.
Josh Robb:
And costs.
Austin Wilson:
And costs. So nowadays, trading is essentially free for us and you on your phone or whatever. Wherever you go, you can pretty much straight for free.
Josh Robb:
Yep.
Austin Wilson:
And you can do it on the internet, in the click of a button, or you can do it on your phone when you push a button. It is that easy and it is executed almost instantaneously.
Josh Robb:
So you don’t have to call somebody place an order and blah, blah, blah, it takes forever.
Austin Wilson:
And trading cost used to be a factor because it used to cost like-
Josh Robb:
34 bucks.
Austin Wilson:
Yeah, or I remember, yeah, 34, 20, when it got under 10, things were a big deal because you’d be a lot more selective at what you’re buying and selling.
Josh Robb:
Yeah, when they went to 9.99 or whatever, 9.95 for a trade, people were like, “Oh, it’s cheap.”
Austin Wilson:
Great deal.
Josh Robb:
It was 4.95 and then zero.
Austin Wilson:
Zero. So those are a couple things that have really propelled that. It’s a lot easier. And like I said, the tax advantaged accounts, we now have 401ks and HSAs and Roth IRAs and all of these things that you’re not taxed in generating that gain when you sell, which is something that you would be in a traditional brokerage account, which is probably what-
Josh Robb:
And they hold you from selling.
Austin Wilson:
Exactly.
Josh Robb:
Yeah.
Austin Wilson:
And that would have been what most people would have had. The further back you would’ve gone, that’s pretty much the best vehicle you had for your investments at that point. So a couple of things that were going on there. So back to compounding. Josh, why is time essential for compounding to work?
Josh Robb:
Yeah. So the whole point of compounding is you give it time to earn and grow on itself. And when we’re looking through that, one of the biggest pieces that impacts that really is if a stock pays a dividend, that’s enhanced because not only does that initial purchase have time to grow on itself as its earnings grow and the company keeps going. But if I’m adding new dollars into that, so if a company pays a dividend and then I reinvest it, that’s more of that stock to compound and grow.
Austin Wilson:
Absolutely.
Josh Robb:
So you’re compounding your compound.
Austin Wilson:
Compounding your compound. Oh, I love it.
Josh Robb:
But we looked, Austin did this cool little look back and saw that a 30 year time period, the last 30 years, an investor earned 83% more by reinvesting dividends. So if you just took the performance of the S&P 500, without dividends, and then you say “What if somebody, every time they got the dividend, reinvested it?” They would have an 83% better performance.
Austin Wilson:
That’s kind of a lot.
Josh Robb:
That’s a big deal.
Austin Wilson:
Well, because if you think, so what? I mean, I’m just pulling a number out of thin air, but say the S&P 500 is average 2% dividend yield over the past 30 years. It’s probably been a little higher than that actually, but now it’s less than that. So it’s 2%. So yeah, you get a 2% in dividends.
Josh Robb:
Reinvest it.
Austin Wilson:
Every single year. So you’re automatically getting 2% more than the price return. And then that 2%’s growing the next year at that return. And then all of that’s growing. It’s just a compound.
Josh Robb:
Oh, it’s awesome.
Austin Wilson:
It’s beautiful.
Josh Robb:
Yep. And that only works if you-
Austin Wilson:
If you’re there to hold and get the dividend.
Josh Robb:
Right. Yeah. So compounding versus your just price return in a one year timeframe, isn’t that big of a deal. But like you said, you let those go over time and that’s why a holding period matters. Your performance will be impacted.
[8:50] – Why Hold Something That Isn’t Doing Well?
Austin Wilson:
Absolutely. Another argument that I think a lot of people hear or are told, or maybe you this yourself as “Well, I’m going to sell my losers.” Right? These things have just stunk it up. They’re dragging down my portfolio and I got to get out. I’ve got to get out before it gets worse. So why would you hold onto something that isn’t doing well?
Josh Robb:
So there is the idea, a couple of things, first is it may just be underperforming at this point. I may have bought it early or there may need more time for it to turn around. So that’s why you’d hold it. The second thing is actually an argument for selling your losers, and we’re going to get to this at the end, but there may be a reason why you actually want to do that. We’re going to talk about that later. But the argument against it is really value investing is buying something when it’s undervalued and letting it catch back up to its realized value.
Austin Wilson:
Right. So if you have something that’s done poorly, you’re anticipating that it’ll do better, all other things equal.
Josh Robb:
Yes.
Austin Wilson:
Another thing is that if you’ve got something that’s really not done well in your portfolio, you might have somewhat of a diversified portfolio.
Josh Robb:
Yes.
Austin Wilson:
That’s one of your drums you’ve been beating for a long time.
Josh Robb:
Yes. If everything your portfolio is going the same direction, is not diversified.
Austin Wilson:
Because that’s happy when it’s going up.
Josh Robb:
Yeah. Right. But when it’s going down, everything’s going down.
Austin Wilson:
Right.
Josh Robb:
And so last year was a great example. If we just look at stocks. If you had growth stocks, you had a great year last year.
Austin Wilson:
Absolutely.
Josh Robb:
It was awesome. If you had value stocks, not so good of a year. It was flat or slightly up 2% or whatever, as opposed to 34% for growth.
Austin Wilson:
Right.
Josh Robb:
That doesn’t mean that you should have just dropped all out of value because historically speaking, those things go back and forth in tandem, sometimes value, sometimes growth outperforms. Doesn’t mean one or the other you should chase. It just means your diversified.
Austin Wilson:
There is a case to be made for owning things that are doing well and things that are doing poorly because different sectors, and even to that matter within different sectors, different companies within those sectors do better or worse at different stages in a market cycle or different stages in an economic cycle. So here we are in 2021, we are in an early part of an economic expansion.
Josh Robb:
Yep.
Austin Wilson:
And we’re at an early part of a new political regime, we’re in a new bull market for that matter too. There’s a lot of new things. So therefore, the things that maybe worked for the last bull market, the last coming out of the global financial crisis, they may, they may, they may not. There’s two different ways it can go, but they may not always be the same things that work the next time around. So yeah, selling your losers, maybe not ideal all the time.
Josh Robb:
So you don’t just do it because-
Austin Wilson:
They’re losing.
Josh Robb:
They’re losing. Yeah.
Austin Wilson:
Unless the fundamental story has changed. If the fundamental story has changed, that’s a whole other story. But just to sell something because the price is down isn’t necessarily what we’re talking about today. The other argument is “I got to capture some of these gains. These winners have been doing so great. I bought PayPal at 60 bucks a share and it’s 250 now. I got to sell.” Why would you not do that?
Josh Robb:
Yeah. And the idea there again is if you have a good strong company, they will continue to grow, their price will continue to go up. And you may sell and lock in some gains, but you may miss out on future gains. And that’s the argument there is, what’s changed? Just because the price is up, if you have lost confidence in it, that’s one thing.
Austin Wilson:
Right.
Josh Robb:
But if you just say, “Whoa, look how much it’s grown? I should stop here.”
Austin Wilson:
Right.
Josh Robb:
Then that’s a different way and something that you may regret later on.
Austin Wilson:
Now the caveat is that if something has grown so much faster than the rest of your portfolio, that it has gotten to be a huge portion of your portfolio, it’s pretty risky to have too big of a position in any one stock.
Josh Robb:
Yeah. And that’s brings us to the question I propose is, and this is true for the loser argument and winner argument.
Austin Wilson:
You’re calling me a loser?
[12:46] – Rebalancing
Josh Robb:
Yes. The idea is rebalancing. We say buy and hold stocks. Well, I’m also proponent that you have an asset allocation and you stick to it, which would require rebalancing. Does that count or does that go against a buy and hold strategy?
Austin Wilson:
No. I think yes and no, actually. Well, technically it does because you are trading and you are not holding necessarily indefinitely. I think that there is a prudent overlay to some of these things. It’s the same argument with the sell your winners. It’s being responsible. You can’t let things get too out of whack.
Josh Robb:
So you would say, it depends?
Austin Wilson:
I would say it depends in moderation. You should probably rebalance in moderation.
Josh Robb:
And really again, we want to clarify. When we talk about buy and hold strategy, when we talk about, “Hey, you know what? There’ll be day traders. In the long run, you’re going to be better off finding good fundamentals and sticking with it.” That’s the underlying, that’s kind of the thesis for investing that we believe in. But on top of it, like you said, you use your own brain to say, “Okay, that’s great, but I’ve owned Apple for 10 years and it’s gone from a 5% weighting in my overall portfolio to now it’s 20% weighting.”
Austin Wilson:
Yeah.
Josh Robb:
“What should I do?” And then the point is, you know what? From a diversified portfolio, you’re getting overweight here.
Austin Wilson:
Right.
Josh Robb:
Maybe you do trim it back. I’m not selling just because it’s a winner, I’m not selling to lock in the gains. I’m selling for a purpose of my allocation is designed to get me to my goal and I need to stick to it. If I get too far overweight, get too far underweight, it could impact my overall success. And so you’re right, it doesn’t go counterintuitive to a buy and hold strategy because you’re not reacting to it.
Austin Wilson:
Correct.
Josh Robb:
Because the opposite of buy and hold really is day trading, which to me is a lot of emotional investing. I’m in, I’m out, I feel good, I’m scared. And that’s really not what rebalancing is. Rebalance is saying at this set time, I would relook at where I’m at and get back to my target. Not because I feel great. I’m indifferent. I’m just going with the thought of, this is where I want to be. I’m going to get back there and I’m doing so in a way that is unemotional, detached from feelings. I’m selling things that are too big, buying things that are too small. I may be selling some winners, but that’s okay because I have a reason, I have a strategy.
Austin Wilson:
Proactive trading is favorable to reactive trading. We would rather be the people choosing to do those things ahead of time before things get too out of whack or before something happens when things are too risky. I don’t know I’m thinking about this because Bitcoin’s popular. But some people had allocated a small portion of their financial picture to Bitcoin a year ago, right? That 5% weighting in your overall.
Josh Robb:
It’s a little bit bigger now.
Austin Wilson:
It’s a lot bigger now if you did not trim it.
Josh Robb:
Yep.
Austin Wilson:
And when Bitcoin falls 20% in a day, that can be-
Josh Robb:
It gets down to 20,000 like you predicted.
Austin Wilson:
It’s going to happen. It’s got to happen, even though not today.
Josh Robb:
Yeah. And along that same thing, when you talk about removing the emotion from it, selling your losers may be reasonable if it’s for a purpose. For instance, we’ve talked about tax loss harvesting, where you sell something at the end of the year to create a taxable event to give you a deduction or a reduction in your income. That’s fine. Again, you’re not selling because you’re emotionally, “Oh, this is the worst stock, I’m out.” You’re selling because I can enhance my taxes and I’m going to probably own this again in 31 days.
Austin Wilson:
Yeah.
Josh Robb:
And so are you still buying and holding? Long-term yeah. You just are being strategic about your taxes during that time frame..
[16:47] – Dad Joke of the Week
Austin Wilson:
And we put a specific episode about that situation out, at the end of last year. So we will link that in the show notes if you want to go take a listen to that. It’s something that’s typically done at the end of the year. You can do that at any point, really. But typically, at the end of the year, when you’re taking a look at your financial, your gains over the year. So Josh, this is pretty real stuff we’re talking about here.
Josh Robb:
Yeah.
Austin Wilson:
I feel like you need to crack a laugh.
Josh Robb:
Take a break.
Austin Wilson:
Yeah. Take a break. Just do it right here. I got a good dad joke of the week for you.
Josh Robb:
I’m ready.
Austin Wilson:
Why do seagulls fly over the sea?
Josh Robb:
Probably because if they flew over the land to be land-gulls.
Austin Wilson:
I mean, you’re pretty dang close because if they flew over the bay, they’d be bagels.
Josh Robb:
Oh, bagels. I like that one even better. I like it. Classic.
[17:20] – Account Type Matters
Austin Wilson:
So there’s your dad joke of the week, bagels. All right. So let’s get into the nitty-gritty of a little bit. Let’s just say that the account type that you’re holding or buying or selling or whatever these stocks specifically, it matters.
Josh Robb:
It does. Yeah. So buy and hold strategy has a different impact in different account types. So if you have a taxable account, which we talked about earlier, if you hold for longer than a year, your capital gains rate is considered long-term.
Austin Wilson:
Right.
Josh Robb:
Which is more favorable tax bracket.
Austin Wilson:
Significantly, usually.
Josh Robb:
Yes, depending on where you’re at. But normally it’s a pretty good discount. If you sell from holding less than a year, you’re taxed at your short-term, which is the same as your income tax rate, which is usually higher. So when you’re holding for less than a minute, that’s the short term.
Austin Wilson:
Little bit short term.
Josh Robb:
Short term tax rate.
Austin Wilson:
This is what’s going to burn the GameStop millionaires or whatever. They only held it for a couple months and they own income tax on potentially millions.
Josh Robb:
And surprise, we have a progressive income tax.
Austin Wilson:
Exactly.
Josh Robb:
So the more you made, the more you’re going to owe.
Austin Wilson:
Exactly.
Josh Robb:
Yep. Except for the guy that started all because I think he started his position over a year.
Austin Wilson:
He would have long-term, yeah, it’s going to work out well for him if he got out at the top.
Josh Robb:
On the reverse side, though.
Austin Wilson:
Flip side, yeah.
Josh Robb:
You have a tax advantage account, which would be anything where the tax is either already paid, like a Roth IRA, or deferred meaning it’s going to come out later, 401k.
Austin Wilson:
Rollover IRA.
Josh Robb:
Rollover IRA, traditional IRA. HSA is in the first category as well because it’s not taxed. Well, I guess it could fall in either depending on what you use the stuff for. But there’s no tax in the transactions.
Austin Wilson:
Yes.
Josh Robb:
And so those then you don’t have to worry about, did I hold it for less than a year or not? So most of the time, taxable accounts, you have an incentive to be a buy and hold person, is I get paid more or I give less to the government if I wait a year or longer.
Austin Wilson:
And all other things equal, we want to pay less tax, if you can, legally and ethically.
Josh Robb:
Legally pay less tax.
Austin Wilson:
Yeah.
Josh Robb:
Tax advantage accounts, that incentive is gone. I could buy it today or I could buy this minute, sell next minute, and I don’t own any tax. As long as it stays in that account and I don’t withdrawal, it’s indifferent. So that’s part of, like you mentioned, is if you’re going to have a strategy that involves more trading, then maybe you’d want it in a tax advantage account. A buy and hold, put it in a taxable account.
Austin Wilson:
Absolutely.
Josh Robb:
So yeah, there is an impact. So think about that. Let’s say you’re utilizing a couple of different strategies for your overall allocation.
Austin Wilson:
You love buckets.
Josh Robb:
Buckets, I love buckets. So there may be a strategy that is more advantageous to trading and you say, “Okay, if I know there’s a possibility of that,” or that maybe it’s some sort of strategy where they come in and out of positions and you have less control over it, you may want to put that in a tax advantage account so that you’re not adversely impacted on your tax return. Whereas you say, “Okay, here’s one that I get to choose the holding period, I get to choose the investments. Maybe that’s a tactical count because then I know if I’m going to sell, I know I’m creating the gains. I’m aware of that on my own.”
Austin Wilson:
Right. The trigger is with you.
Josh Robb:
Yes.
[20:37] – Exceptions
Austin Wilson:
Absolutely. Josh, what is one exception for this sort of thinking?
Josh Robb:
It’s kind of an exception, but the more you think about it, it really shouldn’t be. But let’s say your goals are short term, so then your holding period becomes short term. Now, I would argue then stocks probably aren’t your best thing to be in.
Austin Wilson:
That’s what I was thinking.
Josh Robb:
But let’s say you’re in a position where you want to grow your money, but you’re going to possibly need it in a shorter timeframe. Yeah, then you just be aware of that. And I would again, are you that volatility would be the bigger play there is, what if I need the money short term and I can’t wait for the market to recover.
Austin Wilson:
Right.
Josh Robb:
On April of 2020, the market’s down 34% and I need this.
Austin Wilson:
Yeah.
Josh Robb:
Then I’m locking in losses and I’m selling. But holding period matters, goals matter, and that would consider whether it’s a buy and hold strategy. And again, we’re talking stocks, but maybe it’s a buy and hold strategy for a fixed income ETF for a mutual fund.
Austin Wilson:
Yep.
Josh Robb:
You can still do buy and hold for that, and that’s less volatile. So maybe that’s where you’d fit into those types of shorter term goals where you’d say, “Okay, I may want to own a ETF instead of a mutual fund because I’m not going to get my capital gains at the end of year.” You could be strategic there knowing I have a short timeframe. Still going to hold until I’m done.
Austin Wilson:
Yeah. All of those Reddit people are saying, “Hold the line, hold, hold, hold, hold, hold, hold.” Well, without the buying, this is not even really what we’re talking about. Without the buying side, that gets stocks going flat.
Josh Robb:
You can hold.
Austin Wilson:
It doesn’t mean it’s going to go up. Yeah.
Josh Robb:
You’re still holding your shares.
[22:10] – Conclusion on Holding Period
Austin Wilson:
Exactly. So I guess at the end of the day, Josh, it’s all about how to best meet your long-term goals, right? So investing in general is all about meeting those specifically longer-term goals, but that’s all retirement for a lot of people, that can be a lot of other things. But how long you hold stocks can be a factor in that. And as we know, and we’ve said before, investors left on their own, have historically underperformed the market, they typically make some pretty poor choices when it comes to timing.
And if you are more of a buy and hold type investor, you’re going to do better than that. And that’s one of the benefits that we like to preach in our world is you’re going to do well and meet your goals just by not making bad choices. And that’s something that working with a financial advisor can really help you with. So as a reminder, if anybody would be interested, there is an invest with us tab on our website and you can check that out. You can schedule a meeting with Josh himself to have a discussion. And he has a pretty good ear for this stuff. So check that out if you’re interested. I think it’d probably be best, wow I can’t talk, to wrap this up with some quotes of wisdom from some very wise men in the world. So Josh kick us off.
Josh Robb:
Yeah. And as we do this too, there is the constant like you mentioned. Fundamentally, we are actually more likely to sell winners and hold onto losers too long than we are to sell the losers and keep those winners. We are more likely to say, “Hey, this thing’s up. I’m going to lock in these.” And then say to the loser stock, “It’s probably going to come back at some point.” And so you’re right. We’re predisposition to make bad emotional decisions for investing. That’s why strategy, that’s what goals, that’s why having a plan matters, is you’re not forced to make that decision, which usually is wrong. You say, “Okay, I’m selling this one because my strategy tells me, my goals tell me, my plan tells me I’m too big there.”
Austin Wilson:
Right.
Josh Robb:
“I’m buying this one even though I don’t like it because I need it for diversification. It historically has been fine, it’s just not doing well right now.”
Austin Wilson:
Yep.
Josh Robb:
And you just take the emotion out of it. But to look at that, Nick Murray, who we’ve talked about in a prior podcast, he’s written some books. He says, when it comes to stocks, buy when you have the money sell, when you need the money, everything else is market timing, which is another term for madness. And you could tell he’s not a fan of market timing or day trading.
Austin Wilson:
Right. He would be a buy and hold type investor there.
Josh Robb:
Until you need the money.
Austin Wilson:
And then it’s okay to sell. It’s part of the plan.
Josh Robb:
Yes.
Austin Wilson:
Another wise man that most people in the investing world have looked up to for decades is Warren Buffett. Oracle of Omaha famously said “Our favorite holding period is forever,” because to him and I’m thinking Apple specifically, he’s got a huge stake in it. He’s held it for a long time. It’s big, but it does well. And he understands the company and nothing’s changed. He’s not getting rid of it. And unless things change or your situation changes, hold that stock. So as always, check out our free gift to you. It’s a brief list of eight principles of timeless investing. These are overarching investment themes to keep you on track, to meet your long-term goals. And yeah, we talk about investing for the long-term there. That’s for sure. Check it out, it’s free on our website. Josh, how can people help us grow this podcast?
Josh Robb:
Yeah. Make sure you subscribe. That helps you get an alert every time we drop an episode on Thursdays. Leave us a review on Apple Podcasts, it’s always nice. Helps us with ranking so more people can find us. If you have any ideas or have thoughts or questions about long-term holding or what that means to be buy and hold type of investor, you can email us at hello@theinvesteddads.com. And then if you know somebody who’s talking about this or let’s have a discussion about day trading, send them this episode. I’m sure they’d like to hear it.
Austin Wilson:
Absolutely. Well until next Thursday, have a great week.
Josh Robb:
All right. Talk to you later.
Outro:
Thank you for listening to the Invested Dads Podcast. This episode has ended, but your journey towards a better financial future, doesn’t have to. Head over to theinvesteddads.com to access all the links and resources mentioned in today’s show. If you enjoyed this episode and we had a positive impact on your life, leave us a review, click subscribe, and don’t miss the next episode.
Josh Robb and Austin Wilson work for Hixon Zuercher Capital Management. All opinions expressed by Josh, Austin or any podcast guest are solely their own opinions and do not reflect the opinions of Hixon Zuercher Capital Management. This podcast is for informational purposes only and should not be relied upon for investment decisions. Clients of Hixon Zuercher Capital Management may maintain positions in the securities discussed in this podcast. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses, which would reduce returns. Securities investing involves risk, including the potential for loss of principle. There is no assurance that any investment plan or strategy will be successful.
