Back الشراء والاحتفاظ Arabic Comprar i mantenir Catalan Buy and hold German Comprar y mantener Spanish خرید و نگهداری Persian Osta ja pidä Finnish Acheter et conserver French バイ・アンド・ホールド Japanese 매수 후 보유 Korean Comprar e manter Portuguese

Buy and hold

Buy and hold, also called position trading, is an investment strategy whereby an investor buys financial assets or non-financial assets such as real estate, to hold them long term, with the goal of realizing price appreciation, despite volatility.[1]

This approach implies confidence that the value of the investments will be higher in the future. Investors must not be affected by recency bias, emotions, and must understand their propensity to risk aversion. Investors must buy financial instruments that they expect to appreciate in the long term. Buy and hold investors do not sell after a decline in value. They do not engage in market timing (i.e. selling a security with the goal of buying it again at a lower price) and do not believe in calendar effects such as Sell in May.[2]

Buy and hold is an example of passive management.[3] It has been recommended by Warren Buffett, Jack Bogle, Burton Malkiel, John Templeton, Peter Lynch, and Benjamin Graham since, in the long run, there is a high correlation between the stock market and economic growth.[4][5]

  1. ^ BEERS, BRIAN (May 13, 2020). "Buy And Hold Definition". Investopedia.
  2. ^ Lake, Rebecca (June 19, 2019). "8 Mistakes That Can Wreck Your Buy-and-Hold Strategy". U.S. News & World Report.
  3. ^ Malkiel, Burton G. (January 5, 2015). A Random Walk Down Wall Street. W. W. Norton. ISBN 9780393248951.ISBN 0-393-03888-2
  4. ^ Elkins, Kathleen (September 18, 2018). "Warren Buffett and Jack Bogle agree on the formula for long-term success: 'Buy and hold'". CNBC.
  5. ^ TUN, ZAW THIHA (August 22, 2019). "Pros & Cons Of A Passive Buy And Hold Strategy". Investopedia.

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