Abstract

There has been a proliferation of numerous investment strategies over the years, but one strategy is perceived to have stood the test of time. Investing in the foreseeable future is favored by many successful long-term investors which focus on maintaining a long-term investment horizon. Investing in the long term involves purchasing assets and holding onto them for an extended period, regardless of short-term market fluctuations. Exploring the benefits of this method can help investors make informed selections and build a disciplined investment mindset to achieve their financial goals. The goal of this study was to empirically evaluate the merits of a purchase and hold strategy in financial markets because of its perceived considerable influence on active market players. A Sharpe ratio was utilized for six financial markets from June 13, 2018, to June 13, 2023. The findings revealed that market participants can achieve a sustainable return by simply maintaining a long-term view of their portfolios. This was evident in the Nasdaq, CAC 40 and Nikkei 225. Upon selecting a particular risk tolerance and investment horizon, market participants may earn significant returns on their portfolios.

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