Long term holding
If you hold on to something for years and years you'll get dividends or distributions that slowly add up but for the years that were really bulish, would it be better to lock in those gains and then buy back in so you actually earned something? If you don't sell on the gains and let it ride up and down then you never really gained something if that makes any sense.
Eg. $6000 unrealized gains and you don't sell, a year later its down to 1K so you never gained that potential 6K addition to your wealth and it's back down, would holding long term really negate these points moot?
"But the investor who has held a stock for years is never any better off than today's purchaser. This point is proved with a thought experiment. Pretend your broker made a mistake and sold your shares today, only to catch the mistake and reverse the transaction. You will not be aware of the transaction because your economic position has not changed. You would
own the same value of the stock
hold the same number of shares
receive the same value of dividend.
But now your cost is the same as the current market price - and your YOC is the same as the 'current yield'. If you never learn of the transaction you may continue to brag about that outsized YOC - your own personal delusion.
Too often you hear investors making very bad decisions based on this use of YOC. E.g when a company's prospects change and the stock should be sold, the long-term owner says "Oh, I can't sell my stock NOW. I'm earning a huge yield and I couldn't match that with anything else". He decides to not sell because his YOC will fall. "