Have anyone held a stock for more than 3 years? 5 years or even 10 years? How does it feel like and what you did to make yourself held on to it even when there are times you wanted to sell it? - Seedly
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Anonymous

Asked on 21 Jun 2020

Have anyone held a stock for more than 3 years? 5 years or even 10 years? How does it feel like and what you did to make yourself held on to it even when there are times you wanted to sell it?

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Ng Wei En
Ng Wei En, Analyst at Mastercard
Level 6. Master
Updated on 21 Jun 2020

You should think about selling a stock not because it's about time since its been 3 years or 5 years or 10 years, it should be about whether your investment thesis remains. This means whether the research that supports your decision in buying and whether the profitability of the company still sticks.

Take Coca-Cola for example. The stock has been consistently giving out dividends year over year and is regarded as a very stable business because who doesn't love drinking Coca-Cola? It is a classic soft drink well-loved by many for decades, especially so for the Westerners. Investors who held on to Coca Cola stock over the decades have been well compensated with dividends. However, much attention has been paid to the harmful effects of overconsuming soft drinks and the high level of sugar that could lead to health issues like diabetes recently. Many countries are also starting to impose sugar tax to signal consumers to consider healthier alternatives. If Coca Cola adapts well and starts venturing into healthier alternatives, then you can consider holding on to their shares. If they still stick to their original Coca Cola as their core business as with previous decades, then maybe its about time to sell.​​​

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Ng Wei En
Ng Wei En

21 Jun 2020

Indeed. Definitely takes a lot more skill for an average investor to choose the right stock than a right ETF. Passive investing ETFs definitely have a higher rate of return for most retail investors.
Frankie Rappaport
Frankie Rappaport

21 Jun 2020

(owning stocks myself, that grew quite good, but probably not better than my 'good' ETFs) I generally doubt, because of empiric evidence and also theory, that stock picking works (compared to appropriate index investing). good luck !
Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Jul)

Level 9. God of Wisdom
Answered on 21 Jun 2020

I hold my stocks/ETFs for 24 years maximum now, I hold them always for (almost) 'forever'. I sold only (rarely) when I wanted to buy something expensive, and 2-3 stock companies defaulted completely, so total loss, during the dot.com bubble. The rest worked out just fine for the majority.

It would be a mistake to believe that there is a selling point.

Buy & Hold ultra-longterm is the major road to investing success. Feels good. Not many have this patience in good + bad times, though.

what also to avoid, here:

https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy​​​

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Frankie Rappaport
Frankie Rappaport

21 Jun 2020

Link https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy