What is the 'buy and hold' approach?

Buy and hold is a strategy of buying assets and holding them for a long period despite price fluctuations, in the expectation that their value will rise; it is an example of passive management.

Its commonly cited advantage is that making fewer trades can reduce trading costs and the tax burden. However, it presupposes a judgment that the assets held will rise in value over the long term, so what you hold still matters.