Back to overview
Strategy

Buy & Hold

Buy and hold for many years.

Long-termPassiveWarren Buffett, John Bogle

Core idea

Buy & hold means buying good companies or broad indices and holding them for very long periods — regardless of short-term swings. Compounding and long-term economic growth are meant to drive returns.

How it works

You pick positions carefully, hold them through ups and downs, and sell only when the fundamental thesis genuinely changes.

Pros

  • Low effort, low transaction costs
  • Harnesses long-term compounding
  • Emotion-light

Cons

  • Sitting through crises is psychologically hard
  • Individual stocks can decline permanently
Known for
Warren Buffett, John Bogle

For educational and informational purposes — not investment advice, not a recommendation to follow this strategy.