To: Skeeter Bug who wrote (6717 ) 10/9/1998 10:01:00 AM From: JSwanson Read Replies (2) | Respond to
I think Kory has the correct point about the buy and hold strategy. It is without a doubt the best after tax strategy for a taxable investor. The only people that don't want you to employ it are those who will lose the income from the huge reduction in trading. Each time you close a position you will have paid two commissions and, more importantly, incurred a tax. You can talk all you want about huge profits over a few months but in reality no one can consistently predict short-term events. Further, the tax and commission penalties of frequent trading will far outweigh the benefits in the long run. It is far better to do your research and invest long-term in companies you are comfortable holding for many, many years regardless of market opinion which is just a voting machine in the short run.
