This buy and hold technique requires a patient investor who wants to keep their money invested for a few years, which is why it’s one of the best investment strategies for beginners.
There are many investment types, but the most popular strategy, especially for beginners, is value investing. An investment strategy made popular by Warren Buffet, the principle behind value investing is simple: buy stocks that are cheaper than they should be based on their long-term earnings potential. Finding stocks that are under-priced takes a lot of research on the fundamentals of the underlying companies. And once you’ve found them, it may take a few months or years for their price to rise. This buy and hold technique requires a patient investor who wants to keep their money invested for a few years, which is why it’s one of the best investment strategies for beginners. While the stock market has returned about 8% per year over the last 100 years, there are a few people like Warren Buffet whose stock picks have significantly outperformed the market as a long term investment strategy. If you are planning on keeping your money invested in the stock market for at least 5 years and you want the best source for excellent “value stock” recommendations then consider the Motley Fool Stock Advisor. Take a look at the performance of the Motley Fool stock picks over the last 5 years, as of the date in the table: