Friday, February 21, 2014


Just got a couple more emails that started out with the title above, "Buy and Hold These Stocks Forever."  While I always check them out out of curiosity, I don't always take their recommendations.

You have to think about why you would want to hold a stock forever.  Warren Buffett says that forever is his favorite holding time for an investment and that would be true if you were making great returns the whole time you're holding the stock.  But to my way of thinking, the only reason I'd want to hold a stock forever is a constant stream of rising dividend income.  As long as an investment in my portfolio continues to increase and pay dividends, I see no reason to sell and replace it with another investment.  Of course this takes into account the financial condition of the company and future earnings prospects which would facilitate continued and rising dividends.

So when you find a good company with a good track record for paying and increasing dividends, by all means a buy and hold forever strategy is the way to go.

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