buy and hold strategy - pros and cons, page-2

Much of my money has been in a buy & hold pattern with much of the dividends reinvested were possible.

Nett result is an IRR of 9.8% per annum for the last 10 years.

May not be tops in the return stakes but it sure ain't in the mud and feeding the sharks and investment funds either.

The biggest issue I have with a buy/hold is that the portfolio slowly (fast) gets totally out of balance. It started of in balance and now has 50% by value in WOW and another 30% in CBA. Originally they were 10% each in the portfolio. While it's unbalanced, these guys have stormed ahead and are paying great dividends and look like they'll continue to as well. To switch out is sensible BUT it costs via CGT and at this stage I don't see any need to do this and crystalise a real tax cost to be paid when there is no credible threat to their dividends.

Regards
DKit