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To: dbblg who wrote (76659)	9/6/1999 7:23:00 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 164684

>>would you mind sharing a little of the thought process you went through to become a buy-and-holder? How hard was it? When I decided to spin off half my assets to professional managers this past winter I listened to a lot of portfolio strategy, and I became convinced that for the stocks I like buying and holding is the best policy. There were moments during the correction when I questioned the decision, but the smartest advice I got during that pain came from my Montgomery broker who said that the worst possible mistake would be to switch back to trader mode after a substantial decline. Boy is he right. I was a trader for a long time. Trading is a control pursuit. Regardless of the circumstances or results there is a comforting sense of control. There is the luxury of choice, too. It's a fundamental fact that the more choices in life a person has, the happier he or she is. Then there is the challenge and action trading provides, which is stimulating. All that goes out the window with buy-and-hold. Buy and hold requires conviction (opposed to control), focus (opposed to choice) and patience (opposed to action). For me this has been hard work. What has convinced me that this approach works is my experience losing good positions in the shuffle as a trader, the sheer number of my positions now, and in taxable accounts the huge tax subsidy given to long-term holders which effectively doubles the opportunity for return.