Never Sell

Buffett just sold down Goldman Sachs and JP Morgan as well. Says a lot about what he thinks of certain sectors at least.

https://www.forbes.com/sites/sergeiklebnikov/2020/05/16/buffett-sells-stocks-goldman-sachs-no-elephant-sized-acquisition/amp/

 

I guess it does

 

I read an early Buffet biography. He was a maths genius - a human calculator, had an intense passion and obsession for investing, and he was a workaholic putting in massive hours week after week.

Must have missed the page where he was a fraud ha ha

 

That is pretty impressive. The natural ups and downs of the stockmarket (and the fact that share values keep changing) can really mess with you psychologically, so you need to stay disciplined.

 

I must have missed that page too lol

 

This is always the hardest part. It's why two people with the same strategy can end up with different results. Having a plan is easy. Sticking to it under pressure is much harder.

 

100% - taking action and 'doing it' is the key...

 

So His predicting another crash.... why he is not buying but selling off????

 

Let me explain (cough) because the US Fed has pumped so much money into the market that companies which should have been a 'bargain' for Buffet to buy are staying afloat.

He likes to buy good companies at a cheap price and there just aren't any.


-Frank

 

You don’t have to swing at every pitch as a ‘value investor’ Meaning Buffett doesn’t have to buy everything on offer.
I as a ‘market investor’ don’t worry about that thankfully, I just keep buying the market when I can afford, if I wanna get creative I Buy individual stocks etc

 

i buy into a company ( almost always ) with the INTENTION of keeping SOME ' forever '

if the market rises so much that it is sensible to to retrieve that investment cash ( and let the profits run ) i will normally take that option

HOWEVER for those with a little market experience will quickly realize , that sometimes companies make poor choices , or appoint lacklustre boards , etc etc , and SOMETIMES you are better to exit when in profit

AMP , BLD come straight to mind for me , but have also made the same move elsewhere

SHV was probably a poor decision to leave , in hindsight , but i had tripled my investment cash if only all my mistakes were like that

hold 'forever' but only when you have a company run sensibly for me , boards and directions change .. the investor should consider IF to change decisions as well

in the recent downturn i have been buying extra SELECTED stocks , NOT extra of everything i hold .

please think for yourself , but feel encouraged to read and learn from a wide variety of sources

 

Yes, his rule number 1 was not about holding period
"Rule No.1: Never lose money. Rule No.2: Never forget rule No.1."


What Buffett said in 1988 letter.
In 1988 we made major purchases of Federal Home Loan
Mortgage Pfd. (“Freddie Mac”) and Coca Cola. We expect to hold
these securities for a long time. 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. Our holdings of Freddie Mac are the maximum
allowed by law, and are extensively described by Charlie in his
letter. In our consolidated balance sheet these shares are
carried at cost rather than market, since they are owned by
Mutual Savings and Loan, a non-insurance subsidiary.

We continue to concentrate our investments in a very few
companies that we try to understand well. There are only a
handful of businesses about which we have strong long-term
convictions. Therefore, when we find such a business, we want to
participate in a meaningful way. We agree with Mae West: “Too
much of a good thing can be wonderful.”

 

So anyone offloading??

 

Dow smashed overnight, will be another bumpy period here I think