Buy and Hold

Buy and Hold

A passive investment strategy with which an investor buys stocks and holds them for a long period regardless of fluctuations in the market.

Notes:

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 superior to an active investing strategy. There is no easy answer to this question as both sides have valid arguments. Buy and hold, however, is advantageous as far as tax implications are concerned.

See also: Active Management, Buy, DRIP, Overstay, Passive Management