Understanding buy-and-hold investing – a long-term strategy that Warren Buffett swears by

investing hold strategy term warren
Gulf
  • Date: 07/22/2021
  • Source: Business Insider
  • Sector: Economy
  • Country: Gulf

Understanding buy-and-hold investing – a long-term strategy that Warren Buffett swears by

We've all heard the saying: Good things come to those who wait. This can be applied to investing, where you can choose to buy the stock of a company you think will be successful over time, with the expectation of long-term profits. This is known as a buy-and-hold strategy. Buy-and-hold investing is a strategy where purchase an investment, like a or , and keep it for a long period of time despite changes in the market. Many famous investors, such as Benjamin Graham and , are well-known fans of buy-and-hold investing. Over a short period of time, financial markets tend to fluctuate. Stock and other asset prices go up and down almost constantly during trading hours. Graham, the ," equates on a short time horizon to gambling. He says that true investing takes place over a longer time span. Whether you manage your own portfolio or work with a , buy-and-hold investing is the best investment strategy for most people. If you are investing for retirement or other goals at least 10 years away, buy-and-hold investing is a natural fit. The strong argument for buy-and-hold investing is that, over a long enough period of time, a well-run company should increase