My favorite time frame for holding a stock is forever.
Interpretation
Investing in stocks with a long-term perspective can lead to significant rewards.
Warren Buffett emphasizes the importance of a long-term investment strategy in stocks, suggesting that investors who hold onto their investments indefinitely are more likely to enjoy substantial gains. This perspective promotes patience and a focus on the enduring value of businesses rather than the short-term fluctuations of the market.
In practice
In a financial seminar discussing stock market strategies, this quote can be used to encourage participants to adopt a long-term investment approach.
I have no views as to where it will be, but the one thing I can tell you is it won't do anything between now and then except look at you. Whereas, you know, Coca-Cola (KO) will be making money, and I think Wells Fargo (WFC) will be making a lot of money and there will be a lot - and it's a lot - it's a lot better to have a goose that keeps laying eggs than a goose that just sits there and eats insurance and storage and a few things like that.
If the world couldn't see your results, would you rather be thought of as the world's greatest investor but in reality have the world's worst record? Or be thought of as the world's worst investor when you were actually the best?
Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's.
I think you should read everything you can. In my case, by the age of 10, I'd read every book in the Omaha public library about investing, some twice. _x000D_ You need to fill your mind with various competing thoughts and decide which make sense.
The most common cause of low prices is pessimism - some times pervasive, some times specific to a company or industry. We want to do business in such an environment, not because we like pessimism but because we like the prices it produces. It's optimism that is the enemy of the rational buyer.
Oneβs objective should be to get it right, get it quick, get it out and get it over. Your problem wonβt improve with age.
Owning equities is an essential part of anyone's portfolio. You just can't ignore it over time. It's going to add the real pop to anyone's overall performance.
The worst thing you can do is invest in companies you know nothing about. Unfortunately, buying stocks on ignorance is still a popular American pastime.
I'm a big believer in investing for the long term, and the decisions you make shouldn't be made if the economy is good or bad at a specific time.
Most investors would be better off in an index fund.
Everybody thinks that they're going to time the market, they're going to sharpshoot the market, and buy right at the bottom. The truth of the matter is that nobody is good at it.
Investing is a virtuous habit best started as early as possible.
Subscribe for the occasional hand-picked quote. No noise.