Many experts advocate a
buy-and-hold
investment strategy for long-term investors. Buy-and-hold means you choose
solid investments — usually stocks in profitable, well-established
companies — and keep them in your portfolio through thick
and thin.
Over time, you expect those investments to
increase in value or provide income so you can make additional
investments. For example, a stock might split several times over
a 15- or 20-year period, potentially increasing the size and value
of your portfolio.
However, buy-and-hold doesn't mean do
nothing. If one of your stocks doesn't live up to your expectations
when similar ones are performing well, you can sell it and buy
something else.
