How do I calculate the buy and hold?
When calculating Buy-and-hold, it is important to determine the weights of each stock in the portfolio. This can be done by taking the total portfolio value, including stocks, bonds, cash, and other investments, and dividing it by the cash value of each stock. This will give you the weight of each stock in the portfolio. To make the calculation easier, you can use spreadsheet software such as Sourcetable to help you organize and calculate the weights of each stock.
Weight of each stock = Cash Value of each stock / Total Portfolio Value
What are the benefits of using a Buy-and-hold strategy?
The main benefit of using a Buy-and-hold strategy is that it allows investors to take advantage of long-term capital gains and benefit from stock appreciation over time. Additionally, this strategy is known for outperforming actively managed portfolios, so investors can potentially increase their returns.