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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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Transcript

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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