Introduction to Buy-and-Hold Investing
Buy-and-hold investing is a simple approach that many long-term investors use to make money. With buy-and-hold investing you buy stocks and hold them for many years. Patiently owning a diversified portfolio of stocks with steady price appreciation and rising dividends coupled with dividend reinvestment can lead to substantial profits.
The following table table shows buy-and-hold returns for Johnson & Johnson (JNJ), a global personal care and pharmaceuticals company.
Holding Period Results
# Years Held
Frequency of Profitable Returns
Average Percent Return
Average Annualized Return
Average Annualized Return for S&P 500
|All return data are based on monthly closes (adjusted for splits and dividends) from January 1980 to the present from Yahoo! Finance.|
Here are ten more well-known stocks that have consistently made money for long-term buy-and-hold investors: 3M, Clorox, Coca-Cola, Colgate-Palmolive, Exxon Mobil, International Business Machines, Kimberly-Clark, PepsiCo, Proctor & Gamble and Sherman-Williams. See S&P 500 buy-and-hold returns for comparison.
Use the Stock Holding Period/Return Calculator to see long-term buy-and-hold returns for your favorite stocks.