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Playlist Finance: Investing 37 videos

0
Finance: What is a 12b1 fee?
91 Views

What is a 12b1 fee? A 12b1 fee is paid on mutual funds. The fee is paid by investors and is used to market the mutual fund to other potential inves...

1
Finance: What are moving averages?
7 Views

What are moving averages? Moving averages are calculated using past stock prices in an attempt to determine future trends. It’s calculated by ave...

2
Finance: What is the Difference Between Load and No Load?
45 Views

What is the difference between load and no load? Load and no load are terms used for different mutual funds. Load mutual funds charge a fee or comm...

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Finance: What is Buy and Hold Strategy? 2 Views


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What is a Buy and Hold Strategy? A buy and hold strategy can be thought of as what someone might use in a retirement account or college account (comprised of stock) for a young child. They make investments and let them sit there without changes for a long time regardless of any movements in price because these movements should be short-term.

Language:
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Transcript

00:00

Finance allah shmoop what is a buy and hold strategy

00:07

Your broker hates this You buy one stock and hold

00:11

it for twenty five years How is she ever going

00:13

to pay for her beach house when you pay her

00:16

no commissions Well that's her problem If you buy and

00:19

hold the right stock you'll have crushed it Making serious

00:22

bank had you bought ten grand worth of amazon after

00:26

it was cut in half following a typo wouldn't be

00:28

worth over ten million bucks today Shop around find another

00:32

next year by it Hold it live it so that

00:35

maybe in the course of three decades you've bought now

00:37

thirty stocks and you never sell or pay taxes well

00:41

it's that strategy in part that made warren buffett the

00:44

richest man in america and he's been up there for

00:47

a long time He picks one stock holds of forever

00:50

and just counts his dough and note When you buy

00:52

and hold the stock you don't realize a gain on

00:57

your taxes You keep everything it's very important when you

01:00

calculate financial returns That's nice work if you have the

01:03

brain and guts to put all your eggs in just

01:06

a small handful of baskets Picking the right stocks that

01:09

really work You gotta watch your step though When you

01:11

do that you know when i wind up with you

01:13

know egg on your face like the rest of us

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