My Favorite Long-Term Stock Investing Strategy

Running Length: 00:29:57

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

This week, Tracey continues with her series looking at Benjamin Graham’s best-selling book for value investors called “The Intelligent Investor.”

First published in 1949, the last edition by Graham was published in 1973. But in 2003, Jason Zweig, along with a preface by Warren Buffett, updated the book to account for the events of the last 40 years.

How to Invest for the Long-Term

There are a lot of strategies and techniques for investing for the long-term.

But one that doesn’t get much love is dollar-cost averaging. That’s when you devote a certain amount of money on a specified date to buy stocks.

Many people with 401ks are already doing this strategy.

Benjamin Graham only devotes a few pages in the book to this strategy but it really should get more attention as it’s an easy investing method for most people to deploy.

Why Should You Dollar Cost Average?

1.     It takes the emotions out of investing. When you are fearful it’s easy to panic and sell your stocks. But dollar-cost averaging is automatic, no matter how volatile the market may be.

2.     It prevents the “waiting for it to bottom” syndrome. That’s when investors wait on the sidelines as a stock drops as they wait to time it perfectly at the bottom. Market timing is hard and few do it well. Many investors never face their fears and end up not ever buying the stock at all.

3.     It keeps you on track for your plan. Long-term investors should be looking at the long-range future whether it’s 10 years, 20 years or even 30 years or more.

Dollar-Cost Averaging Individual Stocks

While many dollar-cost average into mutual funds and ETFs, it can also be successfully deployed with individual stocks.

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Disclaimer: Tracey Ryniec is the Value Stock Strategist for She is also the Editor of the  more

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