buy-and-hold
UK[ˌbaɪ ən ˈhəʊld]US[ˌbaɪ ən ˈhoʊld]
adj
relating to or being an investment strategy of purchasing securities and retaining them for a long period regardless of market fluctuations.
n
an investment strategy of purchasing securities and retaining them for a long period regardless of market fluctuations.
Etymology
The term is a modern financial compound, originating in the mid-20th century to describe a passive investment philosophy. It directly and literally combines the core actions of the strategy: to 'buy' an asset and then to 'hold' it. The logic is intentionally simplistic, contrasting with active trading strategies that involve frequent buying and selling. Its meaning is entirely derived from the straightforward sum of its component words, with 'hold' evolving from its physical sense of 'grasp' to the abstract financial sense of 'retain ownership'.
Analysis
This is a compound phrase formed from three English words: 'buy' (from Old English bycgan, meaning to acquire by payment), 'and' (a conjunction from Old English and), and 'hold' (from Old English healdan, meaning to grasp or keep). It functions as a fixed idiomatic unit in finance.
Examples
He advocates a simple buy-and-hold approach to investing in index funds.
The buy-and-hold strategy is often recommended for long-term retirement savings.
Despite the market volatility, she maintained her buy-and-hold position in the company's stock.