Buy & Hold Mercedes Li XY Lau.

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Presentation transcript:

Buy & Hold Mercedes Li XY Lau

What is Buy & Hold? An investment strategy when an investor buys stocks and holds them for a very long time

Why should we use this method? We believe that short-term trading does not work as well as long-term If you bought a stock of Apple 10 years ago, its value should now be ten times what it used to be If you invest $1 in Apple, now you have $10. If you invested $100, now you have $1,000

Why should we use this method According to the Efficient Market Hypothesis, every security is fairly valued at all times, so there is no real value to trading. More extreme advocates of the EMP may encourage never selling stocks unless you need the money TAX BENEFITS!!! Long-term investments tend to be taxed at a lower rate

When should I sell my stocks? 1. When the company files for bankruptcy 2. When the company indicates accounting problems or theft 3. Whenever you want.

THANK YOU VERY MUCH