The Buy-and-Hold Strategy
TIP The buy-and-hold strategy has a number of advantages. Investors don't need to worry about real estate cycles, occupancy or rental rates, or even REITs' asset values. Rather, they will simply place their faith in experienced REIT management teams and be patient.
Also, since these investors are not active traders, commission costs and capital gains taxes will be much lower. Furthermore, if the efficient market theory is correct, it's not possible to beat the market anyway, and a buy-and-hold REIT portfolio should slightly outperform a heavily traded portfolio or an actively managed mutual fund.
However, buy-and-hold ...
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