To successfully employ the buy-and-hold strategy, what must individuals do?

Question

Quizplus · Accepted Answer

To successfully employ the buy-and-hold strategy, individuals need to hold a diversified portfolio of securities and be willing to weather short-term downturns in the market. This strategy is about taking a long-term view and not reacting to temporary fluctuations in stock prices. Choosing a single sector or performing a sophisticated analysis may not lead to diversification and can expose investors to greater risk. Investing primarily in bonds and preferred stocks is a conservative strategy that may not generate significant returns over the long term.

To Successfully Employ the Buy-And-Hold Strategy, What Must Individuals Do