Mark Hulbert reports (bypass registration here) on MarketWatch.com that the average holding period for a NYSE-listed stock is 11 months, which is quite shocking. By trading too often, investors are not allowing compounding to work its magic. Transaction costs and taxes eat into returns and it is a wonder anybody makes money in the market with such short attention spans.

I am happy to report that in five years of investing in the markets, I have mostly bought stocks and seldom sold them. I sincerely believe that it is easy to lose money quickly in the market but getting rich is a slow process that takes decades, not months.

Note: I am working on a post on “Best Deals in Canada”. I am planning to mention President’s Choice Checking Accounts, Virgin Mobile cell phone service etc. I would really appreciate any suggestions or comments.