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Buy and Hold - Definition
Below, you'll find a definition of this investing term...

Definition: The buy and hold strategy is one in which the investor buys a stock and plans to hold it for a long period of time (5 or more years).  Regardless of what happens during that time, they'll continue to hold it.

TeenAnalyst Advice: One of the big mistakes that people make when they first start investing is that they act on every whim.  Every time some unfavorable news comes out, they'll sell their stocks.

This is a bad practice as studies have shown that active investors often underperform those who take long-term approaches.  We recommend buying stocks of good companies and holding them for a long time.

 

Related Sections on Our Website

Investing - Learn more about investing basics and strategies.

Stocks - Learn about investing in the stock market.

 

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