April 3, 2014


Dear Friends,

As a serious investor, the 2014 update of The Ultimate Buy and Hold Strategy could be one of the most important articles you are likely to ever read. This week, we premiered the update of this article, along with new graphs and a podcast, which can all be found at this link.

I have been recommending the Ultimate Buy-and-Hold as a sample strategy since 1992, and I don’t use the word “ultimate” casually. This strategy is based on the research of many prominent academics over a long period, including winners of the Nobel Prize in Economic Sciences.

For the majority of buy and hold investors this is the best investment strategy I have found, as I will show you. This strategy is suitable for do-it-yourself investors as well as those who use professional investment advisors. It works in small portfolios (as little as $1,000) and large portfolios. The Ultimate Buy-and-Hold Strategy doesn’t require you to pore over newsletters, pick stocks, find a guru or understand the economy.

I hope you’ll take the time to learn and apply this strategy, as it could make a huge difference in your – and your family’s – financial future.

The Best Tools for Creating Lifelong Clients
This is the title of a talk I will be giving during the OBS Financial Services annual educational conference, May 14-16 in Indianapolis. I’ve been asked to speak to bankers and investment advisors who use Dimensional Fund Advisors (DFA) family of funds, which I advocate since they apply academic research to the practical world of investing.

I will share with these approximately 100 professionals what I’ve learned about creating lifelong clients, and primarily that is to educate them. I believe that investors need a firm understanding about the past.  I think they need to understand the lessons you have learned from “The ultimate buy and hold strategy,” “Fine tuning your asset allocation” and “The ultimate distribution strategy.” Then they have to know how to use those articles and accompanying tables to address their specific goals and circumstances. Like any lasting relationship, a successful partnership with a client and advisor must be predicated on honesty and trust, not a sales pitch. It’s obviously in the best interest of an advisor to keep client for a lifetime. And it’s in best interest of a client to keep an advisor for a lifetime, as it improves the probability of long-term success.

For more on how to select the best and get the most from your financial advisor, be sure to get your free copyof Get Smart or Get Screwed. By the way, the three books in the “How To Invest” series are now available direct from my home page, without requiring you, or a friend, to sign up for this free bi-monthly newsletter. Of course, I hope you will, and pass along the links via your social networks on and offline. These and my other books are also available for sale in hardback, paperback and/or eBook formats.

“Is The U.S. Stock Market Rigged?”
In this excellent interview from 60 MINUTES, Michael Lewis, author of’ “Flash Boys” reveals how a group of unlikely characters discovered how some high-speed traders work the stock market to their advantage. In a future podcast I will discuss why my approach to using index mutual funds minimizes the impact of high-speed trading. In fact, it’s possible my approach even gives investors greater advantages than high-speed traders have.

To Your Success,
Paul Merriman


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