Sometimes it’s best to do nothing

A week or so ago, I read an article in The Wall Street Journal that provides a great lesson to all investors:  Buy good businesses and then just hang on.  Do nothing.

I’m smiling to myself, because I’m pretty sure I can guess what you’re thinking:  “Heard this story before, Alan.  Buy and hold.  Be patient.  Value investors are in it for the long term.”  And you’re right.  You have heard it before; and you’ll hear it over and over again, for one simple reason:

Quoting from the story’s headline, “It’s a recipe for success”.

To prove his point, Randall Smith, who wrote the piece, uses the ING Corporate Leaders Trust as an example.  The 22 stocks in this $750 million dollar portfolio are all descended Read More »