The buy-and-hold strategy generally involves purchasing stocks that are fundamentally strong and holding them in your portfolio for a long term, i.e., 5-10 years, regardless of market fluctuations and volatility. Fundamentally strong companies demonstrate consistent earnings growth over a substantial period, fund their operations with equity rather than borrowed capital, i.e. have a low debt-to-equity ratio, a high return on equity (ROE), and stable cash flow over a sustained period.
Why Warren Buffett’s buy-and-hold strategy may not always be the best way for long-term wealth creation?
