Part of the beauty of buy-and-hold investing is its simplicity. The market always has occasional pullbacks and crashes, but the long-term trend has always been up. A high-quality company with an extensive track record of success and reasonably priced (or even cheap) shares will go along for the ride, if the investor is patient enough.
But as with every other investing strategy, it doesn’t always work out.
Warren Buffett is one of the greatest buy-and-hold investors of all time. He has held a stake in American Express (AXP) for more than half a century, for example, and he says his favorite holding period is “forever.” And yet he knows that sometimes an investor needs to cut and run from even the most storied names. Once a major shareholder in Johnson & Johnson (JNJ), Buffett’s Berkshire Hathaway (BRK.B) today holds only a token stake.
Times change and fortunes ebb and flow, but long-term holdings should be able to sail through it all. That used to be true of the names on our list. These famous companies once were titans in their respective industries, but future decades won’t be as good to them as the past. Have a look at these former buy-and-hold stocks that are no longer worth buying or holding.
SEE ALSO: The 10 Least Shareholder-Friendly Stocks
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Date — October 31, 2017 4:00 am
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