Grantham: There’s Risk in Value — and in Buy-and-Hold

Jeremy Grantham has released the second half of his fourth-quarter 2008 letter on GMO’s website, and in it he offers several intriguing points about why value investors got hit hard in 2008, where the economy is headed, and whether a buy-and-hold approach to stock investing makes sense. Calling 2008 “The Year of The Value Trap”, Grantham notes that the decades-long pattern of big market declines leading to great stock bargains and big recoveries did not… Read More

Why Buy & Hold Isn’t Dead

Validea CEO John Reese today writes for MSN’s Strategy Lab that those proclaiming the death of buy-and-hold investing are premature in their claims — very premature. Buy-and-hold has a two-century-plus track record of success, Reese says; for market-timers to claim that the approach is “dead” after one very bad year or so just doesn’t make sense — especially now, before market-timers have faced their toughest challenge. “If the riskiest part of market-timing involves missing the… Read More