Buy hold strategy for a long term horizon ?

In short, Yes!

I realized most of my clients have the mindset that they should either be in or out of the markets, simply because they have this concern that the stock correction will take place one day. Which I agree, and it has to happen!

Why ?

Corrections are look upon to be beneficial to both the market and investors. This can help aid the market in the readjustment and recalibration of asset prices that have become unsustainably high. ( Source: Investopedia.com )

However, here's a know fact, when Amazon first held it's Initial Public Offering on May 15, it's only price at $18 per share, and currently it's worth $3,264.11 per share closing in on 8th June 2021.

As a value investor looking to be invested for the long term horizon, what we want to do is to identify great businesses with Wide Moat, Amazon is a very good example.

In investing terms, the word “moat” usually refers to a competitive advantage. To say that a company has a “wide moat” is to say that it has a unique edge over other companies in its industry. In a broader sense, it can be used to describe something in the company's business that serves as a protective barrier.

Moat Explained: ( Source: https://www.thebalance.com )

Take Amazon for example, I would like to think of it as a opportunity to be able to leverage into in a good business model as my potential investment.

I would use:

Buy & Hold Approach ( Increase in value over the years )

&

Dollar Cost Averaging Approach ( To pick up more units along the way )

The only time i will relook into this strategy is if Amazon decides to reconstruct or change their business model and venture into sometime else.

If you'd have me, I'd love to show you how to spot for good business with a wide economic moat to invest in.

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#JustinInCase: The above information is provided for general information only and does not constitute financial advice. While we have taken care to check the source of the information, we cannot guarantee that the information is accurate, complete or will suit your individual financial needs. Please refer to the original source for more details.