Does Buy and Hold Improve Performance?

The buy-and-hold strategy has been around for a long time—most famously applied to the S&P 500. The theory? You can’t outperform the market, so just own it.

But the most successful investors I’ve known took a different approach. They didn’t just buy and hold the market—they bought and held great investments like AAPL, MSFT, ORCL, CSCO, and Bitcoin. Their biggest wins came from not selling too soon.

Years ago, the average stock holding period was six years. Today, it’s just six months. Yet, long-term ownership continues to be one of the best ways to build wealth.

So, does buy and hold improve performance? It depends on what you own.
✅ 4 Reasons Buy and Hold Works:
1️⃣ Accuracy is near 100%. Over time, great stocks rise.
2️⃣ Fewer decisions = fewer mistakes. Every trade is a chance to be wrong.
3️⃣ Tax advantages. Holding longer defers taxes, letting your money compound.
4️⃣ Lower tax rates. Long-term capital gains taxes are much lower than short-term rates.

The easiest way to buy and hold the right stocks? The Stars model. 🌟
Are you a buy-and-hold investor, or do you take a more active approach? Let’s discuss. ⬇️