The Daily Buffett

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Stay the Course

July 10th

Charlie and I would follow a buy-and-hold policy even if we ran a tax-exempt institution.

Warren Buffett

Buffett and his partner, Charlie Munger, are renowned for their buy-and-hold investment strategy, which is built on acquiring stocks and holding them for an extended period, rather than prioritizing short-term trading. This idea reiterates the significance of long-term investment, asserting that the prime moment to part with a stock is almost never.

While tax considerations are important, they should not drive investment decisions. Even in a tax-exempt environment, a solid strategy would still hold its ground. Emphasizing the intrinsic merit of an approach over any tax advantages it may offer is a cornerstone of intelligent investing.

This sentiment also speaks to the necessity of maintaining a steady investment philosophy and not being swayed by external factors such as tax laws. Temporary shifts in strategy might lead to immediate gains, but seldom foster enduring wealth. Consistency, therefore, is key in investment behavior. Resilience in the face of changing circumstances is a testament to the strength of a robust investment philosophy.

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