{"id":12668,"date":"2023-05-30T17:24:43","date_gmt":"2023-05-30T14:24:43","guid":{"rendered":"https:\/\/www.robomarkets.com\/blog\/?p=12668"},"modified":"2023-10-12T15:25:25","modified_gmt":"2023-10-12T12:25:25","slug":"the-buy-and-hold-strategy-a-time-tested-approach-to-long-term-investing","status":"publish","type":"post","link":"https:\/\/www.robomarkets.com.cy\/blog\/investing\/strategies\/the-buy-and-hold-strategy-a-time-tested-approach-to-long-term-investing\/","title":{"rendered":"The Buy-and-Hold Strategy: A Time-Tested Approach to Long-Term Investing"},"content":{"rendered":"\n

The buy-and-hold strategy is one of the most popular investment approaches. It is based on the idea of holding assets over the long term with the aim of generating returns from the rise in their prices, and dividend<\/a> payouts, if any. Today we will look at its basic principles, benefits, and risks, and explain how prominent investors have used it.<\/p>\n\n\n\n

<\/span><\/a>Historical performance of the buy-and-hold strategy<\/span><\/h2>\n\n\n\n

The buy-and-hold strategy is one of the most popular and widely used investment strategies. Let’s look at its historical performance with the Vanguard 500 Index Investor as an example. According to Portfolio Visualizer, the average annual total return of the index from January 1994 to April 2023 inclusive was 12.93%. The highest annual return during this period reached 32.18%, and the minimum annual return was 18.23%.<\/p>\n\n\n\n

\"Vanguard<\/a>
Vanguard 500 Index Investor return chart, 1994–2023*<\/em><\/figcaption><\/figure>\n\n\n\n

<\/span><\/a>Buy-and-hold strategy principles<\/span><\/h2>\n\n\n\n