Warren Buffett has made his enormous fortune by investing in exactly that way, holding fine companies, which have proven track records and competent management, over the long term. He says his favorite holding period is 'forever', though he has sold some stock like Fannie Mae when signs of trouble were coming and he felt his money was better invested elsewhere.
I'm much rather buy into a fund which has a good record over 5 and 10 year periods. Some do very well over a one year time frame but may not do so well over the longer term.
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Tim B of WA 3:35PM March 18, 2011