Is Buy And Hold The Best Strategy For An Individual Investor?
In this day and age of instant gratification, is “Buy And Hold” a good investment strategy? The answer is “It depends”. I know, this is taking the easy way out, but it really does depend on the individual investor. The buy and hold strategy has several pluses and it is practiced exclusively by one of the greatest stock market investors of all times, Warren Buffet. Therefore, it can’t be all bad. One big plus for the investor is you don’t have time to study the market, if you don’t have the time to study the charts, or you don’t have time to keep up with the news, then buy and hold is a great investment strategy for you. Another big plus, you don’t have pay commissions for a lot of trades that eat into your profits. Something that a lot people don’t consider is the tax benefits that come from buying and holding. It is much easier at tax time to only enter 3 or 4 trades instead of 300 to 400 trades. The down side to the buy and hold strategy is when you try to hold on to your stocks duri
