Buy & Hold Strategy in Investing: What Is It?

It's generally understood that stocks can produce better returns than many other types of securities. But anyone who has ever looked at a stock chart knows that stock prices often don't increase smoothly. A buy-and-hold strategy ignores the short-term peaks and valleys and makes the most of the long-term potential of stock investing.

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A person stacking coins next to a wood clock cutout. — Image source: Getty Images.

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Financial Securities

A tradeable asset that holds monetary value.

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Asset Management

A service offered by financial companies to oversee their clients' financial assets. Many asset managers decide how to administer a client's assets based on their investment strategy.

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Get a list of the best companies to buy and hold for the long haul.

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These accounts afford Roth IRA benefits to your child at an early age.

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Find out when selling bonds is a good idea and how to cash in yours.

What You Need to Know About Active vs. Passive Investing

Some don't want to get in the weeds of investing, but others do. Each approach has its own investment style.

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About the Author

Adam Levy is a contributing Motley Fool stock market analyst covering technology, consumer, and financial stocks and how policy, economic, and consumer trends shape personal finance, Social Security and retirement savings. Before The Motley Fool, Adam was a financial advisor at Edward Jones. He studied finance and electrical engineering at Carnegie Mellon University.

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Adam Levy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.