Which of the following is right about the long run risk of buy and hold...
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Which of the following is right about the long run risk of buy and hold a stock for many years versus shortterm investment in a stock Buy and hold for years is more risky than holding a stock for just one year because return is compounded over time and risk is increasing in holding horizon Buy and hold involves lower total risk then holding a stock for just one year because of time diversification. So it might be less worrisome to stick to buyandhold for the longer term as Warren Buffett does. Buy and hold a stock for thirty years is always a safer choice on average than holding a stock for one year. Buy and hold a stock for years has the same risk as the risk of holding a stock for one year
Which of the following is right about the long run risk of buy and hold a stock for many years versus shortterm investment in a stock
Buy and hold for years is more risky than holding a stock for just one year because return is compounded over time and risk is increasing in holding horizon
Buy and hold involves lower total risk then holding a stock for just one year because of time diversification. So it might be less worrisome to stick to buyandhold for the longer term as Warren Buffett does.
Buy and hold a stock for thirty years is always a safer choice on average than holding a stock for one year.
Buy and hold a stock for years has the same risk as the risk of holding a stock for one year
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