Definition of Core Holding





What is a "core holding"? What is the definition of the term "core holding"?

A "core holding" is an investment that you are planning on holding on to for a very, very long time.

Core Holding definition in financeFor instance, you may be a fan of Warren Buffett and his "buy and hold" strategies. You may decide to purchase shares of Berkshire Hathaway with the plan of holding until you hit retirement age. In this case, Berkshire Hathaway would be a "core holding".

This would be a core holding as it applies to the stock market. A "core holding" can be any asset that you plan on holding for an extended period of time.

For instance, let's say that you are a real estate investor. You may decide to purchase a 12-unit apartment building because it is cheap and throws off a great deal of cash flow. You may decide that this apartment building will be one of your "core holdings" due to the fact that the residents are great and the building throws off a great deal of cash.




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