http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold How Do You Choose an Investment to Buy and Hold? The richest people in the world started successful companies or bought into them. And these people retain ownership over the years. You may be too late to found Microsoft, Walmart, Amazon.com, or Berkshire Hathaway but you can follow the examples of these folks. Buy and hold value investing, when you choose the right investments, results in profits that continue for years and years. Why does this approach work? And, how to do you choose an investment to buy and hold? How Do You Choose an Investment to Buy and Hold: Why Does This Work? We like the Warren Buffett quote that the first rule of investing is not to lose money and the second rule is to not forget the first rule. We have written recently about the importance of not losing money when investing and how you have to increase your rate of return on an investment to recoup losses and get back on track after a year or two of losses. Likewise we wrote about how to invest without losing any money by focusing on bonds held to maturity. Although you can make a lot of money in a bull market, too many investors stay with volatile investments too long because they are unable to profitably time an investment cycle. Why a successful buy and hold investment works is because you do not waste money on repeatedly buying and selling and incurring excessive overhead that eats away at your gains. And, a solid long term investment provides appreciation as well as dividends. The long term in this case is ten years or more, which is enough time to average out the gains and losses of an investment cycle.

1. How Do You Choose an Investment
to Buy and Hold?
By www.ProfitableInvestingTips.com

2. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
The richest people in the world started
successful companies or bought into
them.

3. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
And these people retain ownership
over the years.

4. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
You may be too late to found Microsoft,
Walmart, Amazon.com, or Berkshire
Hathaway but you can follow the
examples of these folks.

5. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
Buy and hold value investing, when you
choose the right investments, results in
profits that continue for years and
years.

6. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
Why does this approach work? And,
how to do you choose an investment to
buy and hold?

7. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
How Do You Choose an
Investment to Buy and
Hold: Why Does This
Work?

8. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
We like the Warren Buffett quote that
the first rule of investing is not to lose
money and the second rule is to not
forget the first rule.

9. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
We have written recently about
the importance of not losing money
when investing and how you have to
increase your rate of return on an
investment to recoup losses and get
back on track after a year or two of
losses.

10. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
Likewise we wrote about how to invest
without losing any money by
focusing on bonds held to maturity.

11. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
Although you can make a lot of money
in a bull market, too many investors
stay with volatile investments too long
because they are unable to profitably
time an investment cycle.

12. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
Why a successful buy and hold
investment works is because you do
not waste money on repeatedly buying
and selling and incurring excessive
overhead that eats away at your gains.

13. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
And, a solid long term investment
provides appreciation as well as
dividends.

14. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
The long term in this case is ten years
or more, which is enough time to
average out the gains and losses of an
investment cycle.

15. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
How Do You Choose an
Investment to Buy and
Hold: Choosing
Investments

16. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
A recent article by The Motley
Fool highlights three cheap big
pharma dividend stocks that they
suggest you can buy and hold for many
years.

17. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
One of the greatest enemies of
investors is trading too frequently.

18. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
Jumping in and out of stocks too often
dramatically reduces returns over the
long run.

19. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
That’s why it pays to find stocks that
you can buy and hold onto for years.

20. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
Stocks that meet three criteria often
make the best long-term picks.

21. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
First, their valuations should be
attractive. Stock valuations tend to
revert to their means over time.

22. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
Second, they should pay great
dividends. Don’t underestimate how
important reinvested dividends are to
total returns.

23. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
Third, the stocks should have solid
long-term growth prospects.

24. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
Their three suggestions are AbbVie,
Gilead Sciences, and Pfizer.

25. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
In each case, the main reason to
choose these companies is new
medications in the pipeline and strong
research and development which will
provide revenue far into the future.

26. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
Long term revenue is the key to
choosing an investment to buy and
hold.

27. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
This is the basis of using intrinsic
value as a guide to investing.

28. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
The key to using this approach is to
stick with companies whose business
models you understand (and are easy
to understand) and which will likely
work to provide profits into the long
term future.

29. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
But, buy and hold does not mean buy
and ignore.

30. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
The classic example of a business plan
that technology changes made
obsolete is Eastman Kodak.

31. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
These folks invented the personal
camera and film and were the world
leader for most of the 20th century.

32. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
Then digital came along, and their
business plan did not work.

33. http://profitableinvestingtips.com/profitable-investing-tips/how-do-you-choose-an-investment-to-buy-and-hold
When you choose an investment to buy
and hold you still need to pay attention.