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...Similar Posts
Our financial goals should be aligned with our values and priorities
Our values and priorities shape the decisions we make in every aspect of our lives, including our finances. When it comes to se...
Take advantage of employersponsored retirement plans like 401(k)s
Employersponsored retirement plans like 401(k)s are a valuable tool for building long-term wealth. These plans allow employees ...
Stay diversified to mitigate risk in your portfolio
Diversification is a fundamental principle in investing that is essential for managing risk in a portfolio. When you diversify ...
Impact of inflation
Inflation is a term we often hear in our daily lives, but do we truly understand its impact? Let's delve into this concept to g...
Timing is essential when it comes to mergers
Timing is essential when it comes to mergers. The success or failure of a merger often hinges on when the deal is struck. A wel...
Debasing the currency devalues savings
When governments debase their currencies, they are essentially reducing the value of the money in circulation. This can have a ...
Money is a tool to help you achieve your goals
Money is a peculiar thing. It's a tool that can be used to build a life you want, to provide security for you and your family, ...
Entrepreneurial ventures require careful planning
The path of the entrepreneur is one fraught with uncertainty and risk. To navigate this treacherous terrain successfully, one m...
Efficient market hypothesis suggests stock prices reflect all available information
The efficient market hypothesis suggests that stock prices reflect all available information. This means that the prices of sto...
Make a plan for your money
When it comes to managing your money, one of the most important things you can do is create a plan. Without a plan, it's easy t...