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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
A strategy of buying stocks and keeping them for years regardless of short-term moves.
Why It Matters
Buy and hold is the strategy that has created the most millionaires. Warren Buffett's favorite holding period is 'forever.' If you had bought and held the S&P 500 for any 20-year period in history, you would have made money. The key is ignoring short-term volatility and letting compound growth work. Most attempts to 'time the market' fail miserably.
Key Points
- Time in the market beats timing the market - studies consistently show this
- Buy-and-hold investors pay less in taxes (long-term gains) and transaction fees
- The hardest part is emotional: not selling during crashes and not chasing during bubbles
Related Terms
Common Questions
A strategy of buying stocks and keeping them for years regardless of short-term moves. Buy and hold is the strategy that has created the most millionaires. Warren Buffett's favorite holding period is 'forever.
Buy and hold is the strategy that has created the most millionaires. Warren Buffett's favorite holding period is 'forever.' If you had bought and held the S&P 500 for any 20-year period in history, you would have made money. The key is ignoring short-term volatility and letting compound growth work. Most attempts to 'time the market' fail miserably.
Time in the market beats timing the market - studies consistently show this
Buy-and-hold investors pay less in taxes (long-term gains) and transaction fees
The hardest part is emotional: not selling during crashes and not chasing during bubbles