Buy & Hold Strategy

The “Buy & Hold Strategy” is an investment strategy that involves purchasing Securities and holding them for a long period, regardless of fluctuations in the market. The rationale behind this approach is that, over time, the price of Securities tends to increase, allowing investors to benefit from long-term Capital Appreciation rather than trying to time the market or make frequent trades.

For example, an investor might buy Shares of a company like Apple and hold onto them for several years. Despite market volatility, the investor maintains the position, anticipating that the value of Apple Stock will increase significantly over the long term.

A notable case of the Buy & Hold Strategy is Warren Buffett, who has famously endorsed this approach by Investing in companies like Coca-Cola and American Express for decades. His investments have generally yielded substantial Returns, illustrating the potential effectiveness of the strategy when applied with careful Stock selection.