Buy and Hold: The Buy and Hold strategy involves purchasing high-quality stocks or index funds and retaining them for many years, regardless of market fluctuations. Rooted in the belief that markets rise over the long term, this approach leverages the power of compounding returns while minimizing trading costs and taxes. Investors focus on fundamentally strong companies or broad market indices like the S&P 500. It requires patience and discipline, shielding investors from emotional decision-making during downturns. Warren Buffett is a prominent advocate, emphasizing that time in the market beats timing the market. Ideal for passive investors, Buy and Hold builds wealth steadily and is foundational to many retirement portfolios.
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