Sven Klünder blogs about his finances on Instagram as an “investment engineer”. Sven Klünder
The “Buy and Hold” strategy is considered a popular investment approach for private investors who want to invest in stocks for the long term.
It became particularly popular thanks to famous investors like Warren Buffett.
Stock market legend Warren Buffett once said: “If you’re not willing to hold a stock for ten years, don’t even think about holding it for ten minutes.” For many private investors, this quote serves as a cornerstone for one of the most popular investment strategies: “Buy and Hold”.
This approach of investing in securities over the long term and holding them for years is often praised as a sustainable way to build wealth on the stock market. But is this strategy still sufficient to achieve such goals?
Sven Klünder is a former engineer who invests his money on the stock market in order to become financially independent. His portfolio is in the six-figure range (Business Insider got an insight into his portfolio). He believes that the simple “buy and hold” strategy is not sufficient for long-term investments – and suggests an update to the strategy.
That is why “buy and hold” alone is not enough for the investor
“I would see myself as a broad-based investor for the most part, but a stock has to meet certain criteria to buy in the long term,†Klünder tells Business Insider. “With long-term success in mind, I understand the tendency of many investors to buy and hold.“