This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Buy and Hold Investing Is Not Dead

Stocks in this article: AAPL WEN DPZ PETM HPQ CSCO AMZN SPY QQQ

NEW YORK ( TheStreet) -- The more I consider their mantra, the more I think some people who consider buy-and-hold investing "dead" simply aren't very good stock pickers. Or position managers.

At first blush, I was going to say Sure, just putting your money in an index wouldn't have worked all that well, but that's not true either. Consider the performance of the Nasdaq and S&P 500, as represented by the PowerShares QQQ (QQQ) and SPDR S&P 500 (SPY), over the last decade.

QQQ Chart QQQ data by YCharts

And imagine if you regularly added to a position in the Qs or SPY and/or bought more on dips, corrections and crashes.

But we'll set aside the irrelevance of stock picking when you can just buy an index and do quite alright for yourself in the stock market, at least historically speaking. Most people make this more complicated than it is. If you're not going to buy index funds or, if they just don't perform all that well, it absolutely comes down to stock picking.

I started thinking along these lines when I saw that, seemingly out of nowhere, Wendy's (WEN) is almost an $8 stock.

My biggest problem -- back when I could own individual stocks (As an employee of TheStreet (TST), company policy prohibits me from owning individual stocks other than TST) -- was not adhering to a buy-and-hold philosophy.

Wendy's might be the best example.

In April of 2012, I wrote about the company as a freelancer for TheStreet. Comparing Wendy's to Domino's Pizza (DPZ), I predicted Wendy's May Be the Next Big Turnaround Story. While I would hardly call the turnaround complete, if you bought WEN at the beginning of 2012 -- like I did -- you're sitting pretty today. The stock is up approximately 41% since then.

Now might be the time to take some profits. Not when I did. I could lie and say I sold because I had to ahead of full-time employment at TheStreet. Not so. I sold long before I became full-time, basically breaking even on the transaction.

I made money on DPZ, but also sold that one way too early.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs