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Finance: What is Buy and Hold Strategy? 2 Views

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What is a Buy and Hold Strategy? A buy and hold strategy can be thought of as what someone might use in a retirement account or college account (comprised of stock) for a young child. They make investments and let them sit there without changes for a long time regardless of any movements in price because these movements should be short-term.

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00:00
Finance allah shmoop what is a buy and hold strategy
00:07
Your broker hates this You buy one stock and hold
00:11
it for twenty five years How is she ever going
00:13
to pay for her beach house when you pay her
00:16
no commissions Well that's her problem If you buy and

00:19
hold the right stock you'll have crushed it Making serious
00:22
bank had you bought ten grand worth of amazon after
00:26
it was cut in half following a typo wouldn't be
00:28
worth over ten million bucks today Shop around find another
00:32
next year by it Hold it live it so that
00:35
maybe in the course of three decades you've bought now
00:37
thirty stocks and you never sell or pay taxes well
00:41
it's that strategy in part that made warren buffett the
00:44
richest man in america and he's been up there for
00:47
a long time He picks one stock holds of forever
00:50
and just counts his dough and note When you buy
00:52
and hold the stock you don't realize a gain on
00:57
your taxes You keep everything it's very important when you
01:00
calculate financial returns That's nice work if you have the
01:03
brain and guts to put all your eggs in just
01:06
a small handful of baskets Picking the right stocks that
01:09
really work You gotta watch your step though When you
01:11
do that you know when i wind up with you
01:13
know egg on your face like the rest of us
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