Buy and hold has come under a lot of fire lately as investors and advisors question whether there’s a better way. It’s good to question and re-analyze over time. But it’s not good to have a knee-jerk reaction to the last year’s stock market roller coaster that can do permanent damage to your long-term returns.
John Bogle, founder of Vanguard funds, has been one of the long-time advocates of low-cost, buy-and-hold investing. Morningstar Advisor just published a new interview with him where he answers David Drucker’s questions about whether his approach is standing the test of these turbulent markets. I don’t want to spoil the surprise, but for those of you without the time to read the whole article, Bogle’s answer is YES, buy-and-hold, low-cost investing is still the way to go.
Read Bogle’s full comments at http://advisor.morningstar.com/articles/article.asp?s=0&docId=16537&pgNo=0.