Passive Investing

Passive Investing

An investment strategy involving limited ongoing buying and selling actions. Passive investors will purchase investments with the intention of long-term appreciation and limited maintenance.

Notes:

Also known as a buy-and-hold or couch potato strategy, passive investing requires good initial research, patience, and a well diversified portfolio.

Unlike active investors, passive investors buy a security and typically don't actively attempt to profit from short-term price fluctuations. Passive investors instead rely on their belief that in the long term the investment will be profitable.

See also: Active Investing, Active Management, Buy and Hold, Diversification, Passive Management

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Passive investing

Putting money into a profitable business opportunity that is deemed passive by the IRS and thus benefits from tax deductions.