I generally prefer a buy and hold approach. It is because I view shares of companies as entitlement to profits, and profits of good companies would only increase over time even if their short-term share price fluctuates. Also, capital gain is not recurring income whereas dividend gain is, and the latter is important to me since I am investing to retire. Of course, the question would be how to differentiate “good” companies from “bad” companies. Here, I would like to hypothesize that in a capitalist economy, a company with strong capital can attract good talent, invest in better technology, etc. would statistically have a better chance of being a “good” company. For any statistics to work, it would need sufficient samples. That is, investing a little in numerous potentially “good” companies is statistically better than investing a lot in a few potentially “good” companies. Having a portfolio that consists of...