Frequently Asked Questions (FAQs)
Q: Capital gains are great, but I don't
want to be trading frequently, thereby increasing my capital
gains rate. How long do you recommend holding an investment?
A: We also believe in keeping portfolio
turnover to a minimum to avoid paying higher capital gains.
On average, the stocks in our High-Dividend Portfolio
are held greater than two years on average. For our accumulation portfolios where we invest weekly (e.g. Dividend-Growth Portfolio and High-Yield Stock Portfolios), while we do occasionally sell a stock, there is a case to be made to just buy-and-hold-forever since they only invest in high-quality stocks. There will be the inevitable clunker stock, but it would just become a small part of the portfolio over time.
The collection of Stock
Screens for Short-Term Investing (available separately),
as one would guess, holds stocks for a shorter time.
And stocks in the Short-Term Stock Screens were held for an average
of 12.2 days.
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