Warren Buffett’s Stock Advice That Changed My Life

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I want to share with you this short excerpt from Warren Buffett’s 1988 Letter to Shareholders of Berkshire Hathaway, because it is on the short list of investing quotes that have had a long-lasting effect upon shaping my general investing philosophy:

 “In fact, when we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.  We are just the opposite of those who hurry to sell and book profits when companies perform well but who tenaciously hang on to businesses that disappoint. Peter Lynch aptly likens such behavior to cutting the flowers and watering the weeds.”

A lot of people try to follow some variation of “buy low and sell high” when structuring their assets. It is a very ephemeral strategy, because you spend your life switching from bond to bond, stock to stock, renting stocks the way a gentleman rents a beer on a Saturday. … Read the rest of this article!