Buy and Hold

What is the buy and hold strategy?

The buy and hold strategy involves buying shares and holding them for a longer period of time (several years). It is generally assumed that most shares are subject to a longer-term upward trend and that they rise by an average of around 5% per year. Sales growth rates and dividends are given special consideration when selecting shares. We as traders do not care about this strategy since we manage our equity positions in the short to medium term (days to a few weeks).