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Non-Tech : Claire's Stores (CLE) NYSE

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To: Chuzzlewit who wrote (396)8/6/1997 1:01:00 AM
From: Brad Bolen   of 619
 
Today at a book store I remembered something I read in a book called "Stocks for the Long Run"--another must read for general stock info.

I recall that the book has a study in it that compares a timing strategy to a buy and hold strategy. It compared the two in three different time periods. The first (I believe) was pre WWII. The second two periods after. The interesting thing was that the timing strategy they measured actually beat the hold strategy pretty handily during the modern period. However, the final annualized return for the timing strategy was a few hundreths of a percent lower than the hold stategy after transaction costs were factored in. A whole bunch closer than I would have thought. Jason should be happy about this. However, the 'hold' did win by a few hundreths..no big deal really... except it sure takes a lot more work to try to 'time'. I'll just buy my stock longer term and hang out at the beach without my pager.

B.
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