An active investor enjoys keeping a close eye on market trends and takes a hands-on approach with the goal of beating market returns.
Active investors like to do their homework. They’re looking for stocks they can keep for the next 5-10 years.
Passive investors are focused on returns over the long term instead of timing the market for short-term profits.
Ignoring short-term fluctuations, buy-and-hold investors will aim to hold investments over many years or decades.
Buy-and-hold investors own a range of securities from value, growth, and dividend stocks to index funds, with the aim of investing in quality assets that have strong fundamentals.