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26/08/22
16:11
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Originally posted by TheOldGuy:
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Good morning from Germany! The Vanguard Group did a study on which type of investor makes the most money on the stock market. The focus was on long-term holders and the type - sell expensive - buy cheap. For this purpose, the data from 1928 - 2021 was used. In total, this was 29,000 trading days. A look was also taken at actively managed investments and passive investments. Conclusion : If you didn't hit the high to sell or the low to buy for even 10 trading days, you were already a good 1% below the long-term holder in terms of annual return. If you didn't succeed in doing this for 30 days, you only had half the return. Things didn't look any better for the managed systems. Here, the costs were a key factor that made this type of system perform worse than passive systems. In both cases, finding the perfect timing to sell and buy is almost impossible. Besides that The costs play a role, which is often forgotten by investors, as well as the fact that many papers are constantly becoming more expensive, so that the buyback becomes more expensive or the number of papers held decreases.
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TheOldGuy, Please share your personal experience in your investment strategy. Has your personal experience in buy and hold supported the Vanguard's finding? Have you made any real profit so far? Thanks