Advertisement
Features

Chart of the week: so much for “stocks for the long term”

The average holding period for US stocks plunged from 30 years just before the Second World War to less than two by 2012.

Chart of the average holding period for US stocks

Whatever happened to the notion of "stocks for the long term"?

Far too many investors make the mistake of trying to time the market, says Mark Atherton in The Times, which means they jump in and out so frequently that dealing costs (and the missed opportunities they forfeit by being impatient) erode their returns. Professional investors do this too.

Advertisement - Article continues below

The upshot is that the average holding period for US stocks plunged from 30 years just before the Second World War to less than two by 2012, according to America's Ned Davis Research.

It's high time we all adhered to Warren Buffett's maxim that you shouldn't buy a stock unless you wouldn't mind if the market closed for a decade and you couldn't sell it.

Viewpoint

Philip Aldrick, The Times

Advertisement
Advertisement

Most Popular

Eagle Lightweight GT: the reincarnation of the E-type Jag
Toys and gadgets

Eagle Lightweight GT: the reincarnation of the E-type Jag

Jaguar’s classic E-type sports car has been reinvented for the modern age. The result – the Eagle Lightweight GT – is a thing of beauty.
7 Aug 2020
Platinum: the precious metal that looks set to play catch-up with silver and gold
Silver and other precious metals

Platinum: the precious metal that looks set to play catch-up with silver and gold

Gold and silver continue to soar, but there's still time to get in. And there's another precious metal that looks set to go on a bull run too, says Jo…
7 Aug 2020
UK house prices hit a new record high – can it last?
House prices

UK house prices hit a new record high – can it last?

Despite the pandemic, UK house prices have hit a new high. John Stepek looks at what’s driving the surge in prices, and what it means for house prices…
7 Aug 2020