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Buying and holding has worked very well in the past, this makes it very popular. However there are also a lot of different ways to buy and hold. Let us look at some of the methods which people tend to use when buying and holding.

1. Buy ETFs

What are ETFs? These are basically investments which consists of a number of other investments. For example an ETF may hold 20 or 30 or more stocks and keep them for the long term.

The great thing about ETFs is that they are very easy to buy. You can buy it just like you buy a stock, by opening up a brokerage account typing in the symbol and clicking buy. Because each ETF is already diversified you do not have to worry about finding a large number of strong stocks, just a couple good ETFs.

2. Value Investing

Unlike the last approach in which you simply buy a diverse ETF, this strategy attempts to find the best investments out there in order to get a higher return. By using fundamental indicators such as the PE ratio to get into companies that are likely to beat the market.

Since this strategy has been created it has shown unbelievable results. It is even the method Warren Buffet one of the richest people who ever lived follows. The method is simple, find solid companies and hold onto them for the long term. This method can take a lot of reasearch, yet it can also be worth it.

3. Dividend Investing

Another method of long term investing is investing in great dividend paying stocks. These are companies that consistently pay out a nice dividend to their shareholders. Every investor gets a percentage of the companies earnings, this makes it a very popular way of getting an extra income.

The best part about this strategy is that if you get into strong companies that are growing the dividend will also grow as time goes by.