Making money from holding stocks is nomore a regular and popular practise , that it used to be in past years . The basic cause of its decline in popularity is that today alos many people do not know the benefits of buy and hold.
When you’ll start trading many investors and brokers would make you believe that “Buy and hold is dead now” . The value of this approach has many benefits and ways to make money using this method.
Buy and hold has advantages over fliping stocks, low trading costs, dividends, potential buy outs, turn around plays, etc. The key to buy and hold investing is picking large company stocks with high dividend pay outs and potential for large capital gains. A few stocks that fit this criteria are Caterpillar, IBM, Colgate Palmolive and Exxon-Mobil. All have high dividend pay outs, capital appreciation and strong global brands.
Buy and hold is a strategy that works and is not yet dead. In addition to growing dividends and rising shares there are no extra trading fees or short term capital gains as there are with flipping stocks.