Bag Holder: Meaning and Examples

What Does Bag Holder Mean?

By Mike Price – Updated Sep 9, 2025 at 12:34 PM

Key Points

Bag holders keep stocks until they're worthless, ignoring signs to sell due to emotional bias.
Investors often overlook portfolio checks, especially when changing jobs or addresses.
To avoid value traps, periodically reassess investments and be wary of stagnant industries.

Loading paragraph...

Value Trap

A value trap is a stock that looks like a great deal but really isn't.

Loading definition...

However, sometimes the stock that everyone else thinks is a dud eventually rebounds and makes investors rich. We'll discuss how you can become a bag holder, a few examples of bag holder stocks, and how to determine whether a stock is a value or a value trap.

Loading paragraph...

A man looking at research of a bag holder stock. — Image source: Getty Images.

Loading image...

Loading paragraph...

Loading pitch...

Loading paragraph...

How to Invest in Stocks

Are you ready to jump into the stock market? We've got you.

Day Trading: Why It's a Bad Idea

Similar to gambling, investors try to profit on market ups and downs. Is it worth it?

How to Buy Amazon Stock (AMZN)

Want to invest in the world's second-largest retail company? Get pro tips on picking the right method for your portfolio.

How to Invest in SpaceX in 2025

Learn how to invest in Elon Musk's space exploration company.

Loading hub_pages...

Loading paragraph...

Loading pitch...

About the Author

Mike Price is a 23 year-old Masters of Finance graduate who first started learning about investing on the Motley Fool when he was 13. He is currently seeking a job.

XMFMichaelPrice

Mike Price has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Best Buy. The Motley Fool recommends Bausch Health Companies. The Motley Fool has a disclosure policy.