I read somewehere (I thought on codinghorror) that it is bad practice to add strings together as if they are numbers, since like numbers, strings cannot be changed. Thus, ad
As the others said, $str1 . $str2 is perfectly OK in most cases, except in (big) loops.
Note that you overlook some solutions:
$output = "$str1$str2";
and for large number of strings, you can put them in an array, and use implode() to get a string out of them.
Oh, and "adding strings" sounds bad, or at least ambiguous. In most languages, we prefer to speak of string concatenation.