Play for the Long Haul With 10-Year Stocks

Editor's Note: Arne Alsin's column runs exclusively on RealMoney.com; this is a special free look at his column. For a free trial subscription to RealMoney.com, click here. This article was published Jan. 23 on RealMoney.

Sometimes it's best to buy and forget. The market is more volatile than reason dictates: The average stock oscillates 50% per year, while the long-term average gain in the market is about 9%.

Making big money in a stock -- generating a several-fold gain -- generally requires holding the position for several years. It means holding fast to a "buy and forget" mindset, ignoring the short-term whims of the market in favor of long-term appreciation.

This isn't to say that an entire portfolio should be held untouched for several years. Things change, and adjustments have to be made to positions. But the allure of a bet like the one Warren Buffett made in Coca-Cola (KO Quote) in the late '80s, for example, is compelling: There are no commissions to pay, no slippage due to overtrading and not a dime of tax owed. And, to the extent you're committed to the position, you can flat-out ignore the market. It's relaxing just to think about it. ...