Bag Holder: Meaning and Examples

What Does Bag Holder Mean?

By Mike Price – Updated Sep 9, 2025 at 12:34 PM EST

Key Points

Bag holders keep stocks until they're worthless, ignoring signs to sell due to emotional bias.
Investors often overlook portfolio checks, especially when changing jobs or addresses.
To avoid value traps, periodically reassess investments and be wary of stagnant industries.

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Value Trap

A value trap is a stock that looks like a great deal but really isn't.

However, sometimes the stock that everyone else thinks is a dud eventually rebounds and makes investors rich. We'll discuss how you can become a bag holder, a few examples of bag holder stocks, and how to determine whether a stock is a value or a value trap.

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A man looking at research of a bag holder stock. — Image source: Getty Images.

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About the Author

Mike Price is a 23 year-old Masters of Finance graduate who first started learning about investing on the Motley Fool when he was 13. He is currently seeking a job.

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Mike Price has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Best Buy. The Motley Fool recommends Bausch Health Companies. The Motley Fool has a disclosure policy.