| Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 1,725,312,868 visitors served. |
|
Dictionary/ thesaurus | Medical dictionary | Legal dictionary | Financial dictionary | Acronyms | Idioms | Encyclopedia | Wikipedia encyclopedia | ? |
Buy-and-Hold Strategy |
0.04 sec. |
|
Buy-and-hold strategy A passive investment strategy with no active buying and selling of stocks from the time the portfolio is created until the end of the investment horizon. Opposite of active strategy.
Buy-and-Hold Strategy An investment strategy in which one does not do any trading on one's portfolio between the initial selection of the securities and the end of a certain time period, which is usually a long time from the creation of the portfolio. A buy-and-hold strategy ignores short- and medium-term trends and concentrates exclusively on the long-term. A buy-and-hold strategy can also attempt to eliminate any emotional trading that may be done foolishly during a particular bear market. In general, a buy-and-hold strategy yields a solid return as the market trends upward with time. However, it can be exceptionally risky during a prolonged and severe bear market or recession. For example, if one used a buy-and-hold strategy starting in 1929 and held it throughout the Great Depression, one would have had to wait most of one's life before seeing a profit on the portfolio. See also: Active strategy. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
|
| ? Mentioned in | ? References in periodicals archive | |
|---|---|---|
| If 2005 confirmed anything for Eric McKissack, CEO and Chief Investment Officer of Channing Capital Management, it's that the buy-and-hold strategy he advocates is still one of the best ways to approach investing. Advise clients to form a long-term, buy-and-hold strategy rather than a more active trading approach. Second, there should not be a general assertion that non-fee managers are "designed primarily for companies pursuing a buy-and-hold strategy. |
| Financial Dictionary |
| Free Tools: |
For surfers:
Free toolbar & extensions |
Word of the Day |
Help
For webmasters: Free content | Linking | Lookup box | Double-click lookup | Partner with us |
|---|