Buy and Hold: Can the Lazy Investor Method Really Make You Rich?

Question

Have you heard the saying "holding long-term can make money"? This is the buy and hold strategy – buy assets and just leave them, not moving for years or even decades, relying on time and compound interest to earn.## Why do it this way?**Spend less money**: Frequent trading incurs commissions and taxes, which can eat into your profits. Holding long-term means less trading, and the money saved continues to appreciate.**Tax incentives**: Many places have lower long-term capital gains tax rates, which can help you pay less tax.**Compound Interest Magic**: The profits generated from investments are reinvested, allowing money to generate more money over time, with greater effects the longer you invest. Historical data shows that stocks and bonds generally trend upward in the long term.## But there are also traps**Market volatility is frightening**: There may be a significant drop in the short term, and it&#39;s hard to watch your account shrink. Strong psychological resilience is required.**Not guaranteed to win**: Choosing the wrong asset can also lead to losses; company bankruptcy and industry recession can happen. Therefore, diversification in investment is necessary.**Be patient**: This method tests human nature the most. Many people can&#39;t endure it and are tempted to act rashly when they see others becoming rich quickly through short-term trading.## How to operate?1. **Selected Assets**: Buy stocks/bonds/real estate with strong fundamentals and high growth potential.2. **Diversify Risks**: Don&#39;t put all your eggs in one basket, mix stocks/bonds/real estate.3. **Regular Adjustments**: Although it is called long-term holding, you should regularly check if the investment portfolio has deviated.4. **Regular Investment**: Invest a fixed amount of money each month, without worrying about the timing of entry.In simple terms: choose good assets → diversify investments → review regularly → stick to it → wait to collect money. It sounds boring but works, especially suitable for office workers and retirement planning.