Originally Posted by Amnorix
For individual stocks, no doubt, though nowhere near as bad as day trading, where you can get burned alot worse alot faster. For mutual funds over the long haul, though, buy and hold is not a bad way to go.
Fundamentally, alot of people just aren't going to pay very close attention to their investments, and/or lack the knowledge/skill/time to move in and out of various types of investments. Buying and holding isn't at all bad over the long run if you have a sufficiently diversified portfolio.
Day trading should be left to the pros and very dedicated. The leverage and short sightedness of day trading ****s a lot of people.
Buy and hold with a mutual fund isn't bad because there will be turnover in the portfolio by the manager.
Buy and hold forever with individual stocks is a recipie for disaster. Names like Enron and Dell are perrfect examples. Great names when they were runnning up. Now Enron is gone and Dell sets new 52 week lows every year.