A Very Long-Term Buy-and-Hold Portfolio

Abstract

A buy-and-hold strategy over a 44-year investment period turns out to perform as well as a strategy of investing in a broad market index. At the end of 44 years, the buy-and-hold portfolio tracks the S&P 500 index much the same as portfolios of most active managers. Although it is concentrated, its fundamental characteristics are attractive. This strategy will be more tax-efficient than indexing.