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Portfolios are important to any investor as they provide a way to track investments, find opportunities, and compare performance. But what is the best way to create a portfolio? There are three main ways to build a portfolio:
1. The buy-and-hold strategy: This involves buying stocks that you believe in and holding onto them for years. This strategy is good for investors who want to keep their money in the market but don't want to constantly monitor it.
2. Momentum trading: This strategy means buying stocks when they start performing well and selling them when they stop performing as well as they used to. It is suitable for investors who want more control over their money but don't have the time or interest in monitoring it all day.
3. Value investing: This strategy involves buying stocks when they are at their lowest cost basis and selling them when they reach their highest point. It is ideal for investors who want to make money over the long term and are interested in building wealth instead of just quick profits.
Question: Without an orderly and structured approach towards creating and building an investment portfolio, the investor is likely to fail. Describe the three ways to build an investment portfolio. Then select one of these portfolios as your personal choice, explaining why you would use the chosen portfolio-building method.
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