Whether you associate it most closely with the iMac, the iPod, the iPhone or the iPad, it’s impossible to say it’s anything but a successful firm. It is a set-it-and-forget-it strategy for the patient investor that works.Īpple has been one of the most important companies in the world over the past few decades. One of the more significant is that buy-and-hold investors have to sink large amounts of capital into such portfolios, effectively tying it up. The passive strategy isn’t perfect although it is empirically successful. That’s essentially the same as holding it until 2030 for our purposes. One of his most-famous sound bites is “Our Favorite Holding Period Is Forever.” He notes that investors who don’t feel comfortable holding a stock for 10 years shouldn’t own it at all.
The strategy’s most famous proponent is Warren Buffett, who has famously quipped about its utility. Historical data tends to favor this approach, proving its success vis-a-vis shorter-term, active strategies. Buy-and-hold investing is the strategy that seeks to buy low and sell high.ĭiversification and a lot of time spent researching the market are hallmarks of a successful long-term, buy-and-hold investment strategy. One such spectrum is that which contains active, high-volume trading on one end and passive, buy-and-hold investing on the other. Investing is broadly characterized by polarized spectrums.
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