The Problem With Buy and Hold

Funds that buy stocks and hold them forever, like Fundsmith or Lindsell Train, should focus more on valuation, according to Artemis's Simon Edelsten

David Brenchley 25 April, 2019 | 9:42AM

Robotics, buy and hold investing, investment, valuation, healthcare, robotics, automation

Investors should re-assess the risk/reward of “buy-and-hold” funds run by the likes of Lindsell Train, Fundsmith and Baillie Gifford, according to Artemis’s Simon Edelsten as he looks to take his Silver-rated fund into even more defensive territory.

Edelsten runs his Artemis Global Select fund with a quality-growth bias but a valuation discipline that he says many of his peers, which are ever-more popular with retail investors, do not. And that is likely to see them run into problems as the economic cycle continues to roll on and, eventually, reverse. Valuation investing is at its simplest, the discipline of selling stocks when they become too expensive. 

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Alphabet Inc A1,616.11 USD3.80 Inc3,036.15 USD-5.45
Bristol-Myers Squibb Company58.45 USD0.92
Daifuku Co Ltd10,730.00 JPY-1.20
Facebook Inc A263.11 USD-6.31
Mid Wynd International Inv Tr PLC O Inc642.00 GBX-2.73
Roche Holding AG295.20 CHF-0.20
Vodafone Group PLC103.00 GBX-0.48

About Author

David Brenchley

David Brenchley  is a Reporter for

Audience Confirmation

By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies