Buy-And-Hold Is Dead!

In school, I was taught “buy and hold” was the safe investment strategy that made millions.

Buy stocks in solid companies, sit back and wait decades, and voila, I’d be awash with millions.

They’d shove THAT graph in your face and say “A $10,000 Investment in XYZ Company in 1955 would be worth $5 million today!

Thankfully, I ignored it.

In 1987, I opened a retirement account with $1,000 and invested the monies in a growth mutual fund at a major investment firm.

Yes, I let the “professionals” manage it for me.

For the next decade, I didn’t touch it. Essentially, I forgot about the account.

In the 10 years that followed, I made many lifetimes worth of income by following a different road map and leveraging different strategy.

And what about that retirement account opened years ago?

I never touched it and let it ride the ebbs-and-flow of the Slow-lane.

Today that account is worth $698.

$698!

With inflation, the real purchasing power is $500.

My spare change bucket on my kitchen table was a better investment.

Had I invested $1 million, I’d have lost more than $400,000.

And this is the Slow-laner’s anointed weapon of wealth? Hilarious!

Millions worship the Slowlane roadmap with “buy and hold” as Main Street, a Main Street that is decades long, imperiled by hazards, and rarely routes to wealth.

I recently heard a Slow-lane prognosticator proclaim the effectiveness of “Get Rich Slow” by
citing this tasty factoid:

If at the end of 1940 you had invested $1,000 in the stocks of the S&P 500 you would now have $1,341,513.

So let’s examine this fact, assuming it is fact.

1. It’s 1940 and assume you are 21 years old.
2. It’s 1940 and you somehow got your hands on $1,000, which in today’s dollars is about $15,000.
3. You took that $1,000 in 1940s money and did as above.

Congratulations!

It is NOW 2012 and you are 93 years old, rich with $1,341,513.

Or if you were lucky to get your $1,000 ON BIRTH, you’d now be 73 years old!

Yes, folks, it’s time to get excited!

“Get Rich Slow” is going to make you rich!

Just ignore your 74-year life expectancy and make sure your wheelchair comes equipped with chrome rims.

Seriously, how does anyone get excited over this crap?

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