Buy and Hold Investment Strategy

“Buy and Hold” is not a clear name for a brilliant investment strategy, especially when you are concerned about the safety of your money. However, historical data suggest that the strategy of buying and maintaining shares has established itself as quite successful. Long-term investment strategies are usually designed for decades, and this strategy is based on what you have in stock for quite some time. It often happens that market fluctuations, a bearish trend, inflation and a general economic downturn lead to a sharp decrease in the value of the portfolio during the first 2-5 years.

When you use this strategy, you should consider that there will be, and even should be, periods when you lose your money. And yet, in the long run, this is the way when you can receive an average of about 10% of the initial investment per year with minimal, or acceptable, risks. Of course, this percentage applies to standard portfolios, such as those offered by pension funds or insurance companies. Continue reading →