The Must Follow Podcast

I recently sat down with Sean McLaughlin of StockTwits’s “Must Follow” podcast to talk about our “less is more” investing philosophy at Crossing Wall Street. Here’s what Sean had to say.

In 2015, the idea of a four-year average holding period per stock position might be a completely foreign idea to you. In April, the Wall Street Journal reported the average holding period for U.S. Stocks is just 17 weeks! So, we understand if four years sounds crazy.

But to today’s podcast guest Eddy Elfenbein, four years is the sweet spot.

“A four-year holding period is a reasonable time period to know if your investment is working out” — @EddyElfenbein

Eddy Elfenbein is now in the 10th year of publishing an annual “Buy List” which consists of twenty stocks vetted to be worthy of investment by a host of fundamental qualifications. Each year, the Buy List is reviewed and five new stocks are chosen to replace five stocks Eddy deems to have less opportunity for appreciation ahead. Once January 1st hits, this list — these 20 stocks — are the only stocks Eddy will allow himself to buy for the remainder of the year.

During this run, the slowly-morphing list (equally balanced each Jan 1) has outperformed the S&P 500 by 50% while clocking in with slightly less volatility than the index. What’s not to like about that?

One might guess that to maintain a stoic indifference to the daily and weekly fluctuations of stocks in your portfolio, you must detach yourself fully from the Financial Media Entertainment Complex. But in Eddy’s case, you’ll find fewer people more attuned to the constantly changing global financial news landscape and with a deeper fascination in how the global economy works than him. How does he do it?

We get into this and much much more in this stimulating conversation for anyone who hasn’t yet internalized a less-is-more philosophy to managing your investments:

Posted by on June 30th, 2015 at 10:28 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.