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Buy and hold
Investierenab 13 J.
A strategy where you hold securities for the long term and ignore short-term fluctuations. The most successful strategy for private investors.
Buy and hold is the simplest and historically most successful investment strategy for private investors. The principle: buy broadly diversified securities (e.g. an MSCI World ETF) and hold them for decades. Ignore price slumps along the way.
Why it works: stock markets have always risen in the long run. Every crisis – dotcom (2000), financial crisis (2008), coronavirus (2020) – was recovered within a few years. Those who sold during the crisis realised losses. Those who held on won.
The opposite: day trading and market timing – i.e. trying to time the market. Studies show: over 90% of day traders lose money in the long run.
Did you know? Warren Buffett's favourite holding period: “Forever.” He buys shares intending never to sell them. He has held Berkshire Hathaway stock since the 1960s.
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