Revenge of the Buy-and-Hold Nerds


Howard Gold Image Howard Gold Founder & President, GoldenEgg Investing

Updated Friday, May 7th, 2010

I got a nice surprise when I looked at my account statements recently: Was I really back to even?

Over the weekend, I pored over some old statements, crunched some numbers, and voila! My accounts had recovered nearly everything they had lost during the financial crisis and bear market. Even after this week's tumultuous selling, my accounts are still within a few percentage points of where they were.

That doesn’t include subsequent 401k contributions, which actually put me ahead of where I was. Our daughter’s 529 college savings plan is also in the black again.

I say this not to boast—I’m a good investor, but no genius. Otherwise, I’d be lounging on a yacht in the Caribbean sipping a 1990 Chateau Margaux and thinking Great Thoughts.

Because the stunning fact is, I’m not alone: Two leading financial advisors tell me a lot of their clients are in the same situation.

We’re just average, hard-working Americans who save, invest, plan for the future, and remain aloof from cable-news shout fests, blogosphere conspiracy theories, and scare-mongering spiels from shameless investment pitchmen.

We had truly diversified portfolios and stuck to our guns when times were toughest, continuing to re-invest dividends and contribute to our retirement plans.

So, not only did we limit our losses during the horrendous crash and bear market, but we were already in stocks when the giant rally began last March, and didn’t have to outguess the market all the way up.

Call us the “buy-and-hold nerds,” and for now, at least, we’re winning.

Christopher J.