We have all had some experience with the buy and hold mentality. Maybe it wasn't in the markets. Did you collect baseball cards as a kid? Ever buy an old car in hopes of an increase in value? Or maybe you have had investments left to you from a relative who owned them for years. The point is that we are conditioned to think about our investments as "buy and hold". This approach has been under attack recently as the popularity of ETF's, and the use of options has gained traction. So the big question... Is buy and hold dead?

Since 1900 the markets have averaged a return of 7% annually. Yep, even through all the big swings, the markets have still returned 7% on average. So, at first glance, buy and hold doesn't look so bad. If we consider a consistent contribution to your account and assume that this trend continues, buy and hold seems well worth it. Not to mention the tax savings of long term capital gains, or qualified retirement accounts.

One technique that has been taking hold lately is the ability for investors to utilize options in their retirement accounts. In addition, the use of options in traditional margin accounts has skyrocketed over the past 10 years. Investors now are learning that with a few simple additions to their strategy, they can start to outpace the historical average return. This doesn't come without its risks though. Let's just say there is a right way to do it and a wrong way. Betting it all on an out of the money call option will certainly leave you with a sour taste in your mouth.

Another technique is a blended ETF strategy. These days you can spread your portfolio over many different ETF's that all have specific goals in mind. With the correct allocation among these ETF's one could certainly see an improvement in returns as compared to the average. Add to this the low fee's and attractive tax benefits and one could further amplify their long term returns.

So, to sum it up I would say that buy and hold is alive and well for the passive, long term investor. Statistics prove that you cant go wrong with a consistent, long term investment strategy. For those that want to take it a step further though, buy and hold is simply a thing of the past, and larger returns are there for the taking.