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When it comes to investments, there are primarily two things people invest for capital gains and cash flow.
Capital Gains are the one-time profit you make on the sale of an investment. The strategy behind capital gains is to buy and sell. In order to realize capital gains, you must sell the asset. As long as market prices go up, capital-gains investors win. But when the markets turn down and prices fall, capital-gains investors lose.
Cash Flow is an ongoing stream of income you receive from an investment. You may receive this money on a monthly, quarterly, or annual basis, depending on the investment. The strategy behind cash flow is to buy and hold.