Buy & Hold
The Buy & Hold strategy is a very conservative one, which consists in buying stock and just keep it for a long period on a portfolio, as long as it produces good results, including payments of dividends and interests on own capital regularly, and preferably, if share prices keep a steady hike for most of the time. The main objective for the investor who buys shares and just hold them it’s increasing his savings over time, with a bit of diversity.
Many investor keep buying stocks for a long time, while shares are still cheap, getting assets for a good average pricing and enlarging their portfolios. Besides, using the cash paid in dividends and rights, they purchase even more stock, increasing the amount of future dividends. Also, these investors use to lend their shares for a fee – as they don’t expect to sell them off in the short and médium term, they can lend their portfolio to other investors, who pay fees.