A passive investment strategy in which an investor buys stocks and holds them for a long period of time, regardless of fluctuations in the market. An investor who employs a buy-and-hold strategy actively selects stocks, but once in a position, is not concerned with short-term price movements and technical indicators.
Investopedia Says:
Conventional investing wisdom tells us that with a long time horizon, equities render a higher return than other asset classes such as bonds. There is, however, a debate over whether a buy-and-hold strategy is actually superior to an active investing strategy; both sides have valid arguments. A buy-and-hold strategy has tax benefits, however, because long-term investments tend to be taxed at a lower rate than short-term investments.
Related Links:
Discover tips from a long-term strategy that can help you make better short-term trades. What Can Traders Learn From Investors?
There are many strategies to help balance your portfolio. Here are a few to get you started. Choose Your Own Asset Allocation Adventure
These guiding principles will help you avoid common folly during the decision-making process. Ten Tips For The Successful Long-Term Investor
Investors would be wise to consider the impact of the government's cut on their returns. Learn ways to minimize it. A Long-Term Mindset Meets Dreaded Capital-Gains Tax
Find out what to look out for when trading during market instability. Tips For Investors In Volatile Markets
These two approaches aren't incompatible - learn how to get the best of both worlds. What Can Investors Learn From Traders?
Diversification? Optimal portfolio theory? Read this tutorial and these and other financial concepts will be made clear. Financial Concepts
