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Buy and Hold
Term category: General Investing, Stocks
In 10 words or less: A strategy that involves buying stocks and holding onto them for a long time.

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.

StockJargon 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.

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