Warren Buffet: “If I had never sold a stock, I would be much wealthier”

by look_wide

One of the biggest obstacles to active stock picking (as opposed to indexing) seems to be with all the problems with timing the market. We tend to want to buy when others want to buy, and less when others are fearful (i.e. the worst timing).

But this strategy seems attractive. You pick high quality companies that you think will surge over the next 20 years (Amazon, Tesla, Disney, whatever you think) and NEVER SELL.

This takes out some of the issues with active investing where people are getting in and out of the market at all the wrong times.

What do you think? Would this solve any of the problems with active investing?

edit: lots of awesome comments but I think some people aren’t being as charitable to the proposal as they should. Using examples of companies that rose and fall after 30 years isn’t very fair to the main idea behind this proposal. Let’s say buy and hold for 10 years minimum. The basic idea is that you are NOT thinking about getting in and out of the stock at the right times. Buy and hold even on the down years.

 

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.