Hello and welcome to Money Girls Quick and Dirty Tips for a richer life.

I'm your host Laura Adams. This episode is about investment strategies that can help you

select a successful portfolio. I've received several emails from intelligent young

listeners who want to know more about the basics of investing especially when it

comes to stocks. I applaud your enthusiasm for building wealth. This show

will introduce you to basic investment strategies and will be a good review

for the more experienced investors who are listening.

There are two major camps of investment philosophies, passive strategies and active strategies.

Investors on the passive side generally believe that it's best to purchase a good investment

and keep it for the long term. This is often called a buy and hold strategy. The

idea is that fewer transactions of buying and selling minimize costs.

A buy and hold strategy is also supported by the concept that over longer periods of time

investing in stocks can provide higher returns despite market volatility.

Active investment strategies on the other hand aim to maximize return despite transaction costs.

Active investors believe they can achieve higher returns

by timing the stock market.

This means buying low and selling high

over shorter periods of time.

Active investors watch the market carefully and make decisions based on current events

or from charting patterns of a stock's performance.

Neither strategy is inherently right or wrong, but should be adopted based on one's level of knowledge, investing experience, and tolerance for risk.

With our current economic conditions, preserving and building wealth, is simply more challenging

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