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Updated almost 8 years ago,
Buy and Hold vs Value Investment in the Stock Market???
Hello BP! I would like to start a debate on Buy and Hold investing vs Value Investment in the Stock Market.
I have read multiple investment books (Rich Dad Poor Dad, The Richest Man in Babylon, etc...) and I am certain that investment is the key to having a stable financial future. I have a career going on so I am not interested in full time RE (flipping houses or wholesale) and trading stocks, I am leaning in long term investing.
In my market, it is rare to find Buy and Hold deals with significant cashflows (it is similar to Boston, NY or Los Angeles market). What do you think are the minimum Cap Rate and Cash on Cash ratios you have to get to invest in Buy and Hold over Value Investment in the stock market??
For those not familiar to Value Investment, it is the kind of investment style that Warren Buffet does where you analyze balance sheets, annual reports, dividends and stock price to figure out intrinsic value of a company in order to find a stock that is undervalued and can potentially grow over time (you can expect around 10% returns).