Longterm investors can benefit from a buy-and-hold strategy from "summary" of All About Asset Allocation, Second Edition by Richard Ferri
Long-term investors who adopt a buy-and-hold strategy stand to gain various benefits. This approach involves purchasing investments and retaining them for an extended period, regardless of short-term market fluctuations. By maintaining their positions over the long run, investors can potentially capitalize on the overall upward trajectory of the market. This strategy is particularly advantageous for those who have a low tolerance for risk or lack the time and expertise to engage in frequent trading. One key advantage of a buy-and-hold strategy is the potential for reduced trading costs. Constantly buying and selling investments can lead to high transaction fees, which can eat into overall returns. By holding onto investments for an extended period, investors can minimize these costs and potentially incre...
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