Dell Inc. (DELL), Elan Corporation, plc (ADR) (ELN): You’re a Bad Investor. Here’s How to Get Better.

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“Holding stocks for less than a year amounts to little more than flipping a coin,” Housel found after surveying broader market data dating back to 1871. “But the odds of success grow perfectly with time. If you hold for five, 10, 15, years or more, the odds of earning a positive return on stocks after inflation quickly approach 100%, historically.”

And the authors of the DALBAR study agree, concluding that the best way to avoid market-timing pitfalls is to “adopt a buy and hold strategy that has rewarded prudent and patient investors for decades.”

More advice from The Motley Fool
Dividend stocks can make you rich. It’s as simple as that. While they don’t garner the notability of high-flying growth stocks, they’re also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine.

The article You’re a Bad Investor. Here’s How to Get Better. originally appeared on Fool.com and is written by John Maxfield.

John Maxfield and The Motley Fool have no position in any of the stocks mentioned.

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