Warren Buffett

Warren Buffett

Last Update: 02-09-2016

Number of Stocks: 48
Number of New Stocks: 1

Total Value: $127,408 Mil
Q/Q Turnover: 23%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Warren Buffett Watch

  • Warren Buffett: 'I Am Not Worried' About Market

    A Chicago lawyer had Warren Buffett (Trades, Portfolio) over to his house for dinner Thursday night and a guest commemorated the exceptional event with a press release for his firm. But embedded in the description of general bonhomie that characterized the night were some comforting words from Buffett on the volatile market 2016 brought:

    “I am not worried. Buy and hold good companies and you will make money," Buffett said.


  • Munger on IBM, Life Advice, Why Valeant Comments Brought 'Nothing But Trouble'

  • Why Most Investors Fail in the Stock Market

    Throughout the past 30 days of wild volatility, here’s what I didn’t do.



  • Unique Business Model of Norwegian Oil Service Firm Has Long-Term Value

    TGS-NOPEC Geophysical Co. ASA (TGSNF) recently posted fully diluted losses of 28 cents per share for 2015, and the price is down around 30% since late 2015. The unique business model seems to provide some long-term value.

    TGS-NOPEC is a Norwegian oil and gas service company that provides multi-client seismic data. Seismic data is the only way to physically map sub-surface geology in order to determine where to drill for oil and gas. Oil companies can obtain seismic data either by hiring a seismic contractor and paying the full cost and profit to the contractor, or by purchasing a license to use multi-client data already acquired by a contractor.


  • Starbucks, Foot Locker Beat the Market Over Past Year

    The following are some of the stocks that outperformed the S&P 500 Index over the last 12 months and have been bought by gurus during the last quarter.

    Avery Dennison Corp. (AVY) has a market cap of $5.55 billion, and during the last 12 months has outperformed the S&P 500 Index by 31.3%. Currently five gurus are holding the company, which has returned 3% year-to-date and 56% during the last five years. It is now trading with a P/E ratio of 20.10 and according to the DCF calculator, it looks overpriced by 88%.


  • The Samurai Stock Market

    The strong ones in life are those who understand the meaning of the word patience. Patience means restraining one’s inclinations. There are seven emotions: joy, anger, anxiety, adoration, grief, fear and hate, and if a man does not give way to these he can be called patient. I am not as strong as I might be, but I have long known and practiced patience. And if my descendants wish to be as I am, they must study patience.” – Tokugawa Ieyasu


  • In Vast Difference From Berkshire Style, Lou Simpson Adds to Valeant Position

    Former Geico CIO Lou Simpson (Trades, Portfolio) is well known for having been a trusted manager of the Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) subsidiary, of whom Warren Buffett often sang the praises in his annual shareholder letters. As demonstrated in his fourth-quarter trades, however, Simpson can also have vastly different investment ideas than what can be considered a classic Buffett company.

    One clear example of Simpson’s occasional differences from Buffett and Charlie Munger (Trades, Portfolio)’s style is his current investment in Valeant Pharmaceuticals (NYSE:VRX), whose troubles dominated headlines toward the end of last year. In the fourth quarter, Simpson purchased an additional 745,631 shares in Valeant, upping his stake by 38%. The average price paid for the shares was $112.18, about half the average price he paid during the previous quarter.


  • Invest With a Telescope, Not a Microscope

    It was another bloody week in the stock market (Standard & Poor's 500 index dropped 3.1%), and any glass half full of data was interpreted as half empty.

    The week was epitomized by a Citigroup (NYSE:C) report entitled “World Economy Trapped in a Death Spiral.” A sluggish monthly jobs report on Friday, which registered a less-than-anticipated addition of 151,000 jobs, painted a weakening employment picture. Professional social media site LinkedIn Corp. (NYSE:LNKD) added fuel to the fire with a soft profit forecast, which resulted in the stock getting almost chopped in half (-44%) in a single day (ouch).


  • Baron Growth Fund 4th-Quarter Letter

    Dear Baron Growth Fund Shareholder:

    U.S. stock markets experienced unusual volatility during the three months ended Dec. 31, 2015. Baron Growth Fund (the “Fund”) increased 1.40% (Institutional Shares). The Russell 2000 Growth Index, the small-cap benchmark against which we compare the performance of this Fund, rose 4.32%. During 2015, the Fund declined 4.06% per share. This compared to a decline of 1.38% for the Russell 2000 Growth Index.


  • This Highly Profitable Airline Is Cheap Now

    Whenever investing in airlines, first and foremost, remember Richard Branson’s advice: “If you want to be a millionaire, start with a billion dollars and launch a new airline.”

    Even Warren Buffett (Trades, Portfolio), the most successful investor, has warned us about the negative aggregate value that airlines brought to investors over time. Normally, an airline should have lots of capital for buying or leasing airplanes and fixed huge operating costs. In order to be profitable, an airline should fill as many seats as possible for any flights.


  • These 2 Stocks Prove That Buy-and-Hold Strategy Will Make Us Wealthy

    Warren Buffett (Trades, Portfolio) always says: “Our favorite holding period is forever.” Many investors who are not patient enough often ask themselves why Buffett does not sell at the top and buy at the bottom. He did buy and sell, for many stocks and other financial instruments, because of what he calls opportunity cost. But with most of Berkshire Hathaway’s (NYSE:BRK.A) (NYSE:BRK.B) cash on hand, he prefers to buy just to keep, despite the large fluctuations in the stock market price.

    Indeed, I have made some money on buying and selling. I often bought at the dip when the companies announced weak earnings and/or they just experienced a sudden drop in the stock price without any reason, but their earning power still remained. And I sold when its stock rebounded significantly. However, I realized that much more money would have been made via buying and holding.


  • A Mistake That Cost Buffett Billions

    When we start to invest, we are eager to try different methods of investing. We will try the methods with which we feel in love the most, the methods about which we already have some fundamental knowledge.

    For example, investors with advanced math knowledge might love quant and technical analysis. Others might follow value investment. Of course, all investors will have a similar goal: to compound money at the highest rate for the longest period of time. However, our minds are often toward short-term large profits, which might sacrifice long-term gains. Besides, short-term gains might go along with higher risks, meaning that the probability of losing capital is quite high.


  • Which Industries Are Super Investors Dumping and Where Are They Shopping?

    Like most value investors, I’m not really a macro guy.

    I just go through filings alphabetically, chase leads like insider buying and guru buying, go over 52-week low lists, etc., and subsequently judge the fundamentals of each business individually to determine whether I like it as an investment or not. On a rare occasion I’m tempted to take a position in an ETF on the Russian stock market or the Greek stock market but in practice ended up owning a few specific Greek stocks based on their fundamentals.


  • Warren Buffett’s 3 Cornerstones of Sound Investing

    Warren Buffett (Trades, Portfolio) is worth over $60 billion. He knows a thing or two about investing.

    True geniuses tend to make things simpler, not more confusing. Buffett is no exception.  

  • Don't Let Mr. Market Separate You From a Great Company

    Over a five-year period, the price of a stock will largely track the fundamentals of the company rather than its quarterly economic reports. We live in a world in which information on virtually anything is no further away than your smartphone.

    With the ability to access information and the media’s reporting on the stock market as though it were a sports event, investors lose track of the long term and focus too much on the short term.


  • Quarterly 'What Did Warren Buffett Buy?' Contest Begins

    It’s time for GuruFocus’ quarterly ‘Guess What Warren Buffett (Trades, Portfolio) Bought’ contest.

    To play, enter three stocks with symbols you think Warren Buffett (Trades, Portfolio) might have purchased in the fourth quarter in the comments section below, along with a brief explanation of why you picked them. Eligible stocks include any in Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B)’s portfolio, including those that may have been purchased by his two portfolio managers, Ted Weschler and Todd Combs.


  • Is Berkshire Hathaway Now a Buy?

    In the past 12 months, shares of Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) have had a rare pummeling, down 15%, over double the decline of the S&P 500 (SPY). Since 2000, there have only been a handful of occasions where shares have experienced a trailing 12 month loss of this magnitude. Still, on every one of those occasions, Berkshire stock would have been a prudent buy.

    Is this time any different?


  • Researching United Technologies: Here’s How I Do It

    One of the greatest challenges that authors face when posting articles on financial blogs is how much information they should include and how much they should exclude. Space is limited, and many readers prefer a short write-up. Therefore, most authors (yours truly included) attempt to summarize their positions in the fewest words possible. However, this approach implies that readers will fill in the blanks between what is said and what is left out. Unfortunately, that is not what always happens.

    In my own personal experience, the best example I can offer to illustrate what I’m talking about relates to comprehensive research and due diligence. I am a firm believer that all investing in common stocks requires comprehensive research and due diligence before your money is invested. As a result, I often provide articles on what I refer to as research candidates. Most of the time I am presenting candidates who I believe appear sound or attractively valued.


  • Should We Use EBITDA to Compute True Business Earnings?

    In the business valuation process, many Wall Street firms and investors have used EBITDA as a measure of business cash flow, and EBITDA multiple to determine the appropriate valuation of the business. However, there are other opinions that EBITDA is often a misleading number for real business operating performance. Let’s take a closer look to see whether we should use EBITDA in our valuation process.

    What is EBITDA?


  • Why the S&P 600 Small-Cap Index Is Undervalued

    Warren Buffett (Trades, Portfolio) is planning to put his money in index funds for his heirs. Buffett says, “My advice to the trustee couldn't be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard's.) I believe the trust's long-term results from this policy will be superior to those attained by most investors — whether pension funds, institutions or individuals — who employ high-fee managers.”

    If the Oracle of Omaha is recommending index investing for his family, should you do the same? Maybe you are an avid believer in Benjamin Graham’s value investing ideas and a long-time admirer of John Bogle (the creator of index investing). Can you meld these two different investing philosophies? Yes, you can with Value Index Investing!


  • Buffett and Munger on How to Get Better at Valuing Companies

    During the 2010 Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) Annual Investor Meeting, Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) were asked how investors can get better at valuing a company. We have heard the famous quote by Oscar Wilde: "A cynic is a man who knows the price of everything and the value of nothing." Improving valuation skills is critical to taking advantage of mispricings. So how did these two investors improve their skills over time?

    Buffett: Very, very good question. I started out not knowing anything about valuing companies. Ben Graham taught me a way to value a certain type of business, but the selection of available companies dried up. Charlie taught me about durable competitive advantage. Not how big circle of competence is, but knowing where the edges are is most important. Think about businesses in your own hometown. Ask questions about the businesses. Which do you want to buy into? Which are hard to compete with? Talk about businesses with people. What is working? What is not? You have to ask. You would be surprised at how many companies I know nothing about. The goal is to find companies that will be around for 20 years and offer a margin of safety. You have to recognize your limitations to be successful in this business. Six, seven years ago I looked at Korean stocks, and I could see a number of businesses that met margin of safety. I bought 20 and diversified.


  • T Rowe Price Equity Income Fund Exits Flowserve in 4th Quarter

    T Rowe Price Equity Income Fund exited its position in many stocks during the fourth quarter.

    The Fund sold out its stake in Corning Inc. (GLW) with an impact of -0.91% on the portfolio.


  • How to Blend Value and Index Investing

    Warren Buffett (Trades, Portfolio) is planning to put his money in index funds for his heirs. Buffett says, “My advice to the trustee couldn't be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard's.) I believe the trust's long-term results from this policy will be superior to those attained by most investors — whether pension funds, institutions or individuals — who employ high-fee managers.”

    If the Oracle of Omaha is recommending index investing for his family, should you do the same? Maybe you are an avid believer in Benjamin Graham’s value investing ideas and a long-time admirer of John Bogle (the creator of Index Investing). Can you meld these two different investing philosophies? Yes, you can with Value Index Investing!


  • Arnold Van Den Berg Cuts Stake in Coca-Cola by Nearly Half

    Arnold Van Den Berg, who founded Century Management in 1974, reduced 39 stakes in the fourth quarter with most reductions below 10%. Following are his largest reductions.

    The largest reduction was in Great Lakes Dredge & Dock Corp. (GLDD) in which he reduced his stake by 99.87% with an impact of -0.68% on the portfolio.


  • Second Thoughts on Bank of America's Growth Prospects

    At $5, Bank of America (NYSE:BAC) was super cheap. Even now, on a relative price to earnings basis, the stock looks like a bargain. However, if I could truly determine that the company had the potential to reach the $4 per share in EPS it had a decade ago, then I’d be much more definitive about holding on.

    One factor is the volatility around Fed movements. While the banks are going to make money one way or another, the country as a whole cannot afford higher rates without a total restructuring, and we don’t want to end up like Puerto Rico.


  • Dan Loeb's Third Point Re a Tremendous Value

    It’s not often that you can buy into a legendary value investor hedge fund at a discount. Third Point Re (NYSE:TPRE) might be the exception.

    Ever since Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) found long-term success, hedge fund managers have scrambled to set up their own insurance companies. In this structure, the insurance entity focuses on underwriting policies, while the premiums are managed by the hedge fund manager.


  • Seth Klarman Comments on a Bad 2015

    As you might know, some of Seth Klarman (Trades, Portfolio)'s comments from the 2015 Letter to Investors have been disclosed. It is important to note that, since its inception 33 years ago, this is only the third year in which the fund has had a drawback. Overall, the result of its publicly traded positions was a loss of 6.7%, while the private investment portfolio raised 2.4%. Generally, Klarman is very blunt and straightforward in his comments yet, with a great deal of insight and wisdom, embedded.

    "Value investors must be strong and resilient, as well as independent-minded and sometimes contrary," he wrote. "You don't become a value investor for the group hugs. Indeed, one can go long stretches of time with no positive reinforcement whatsoever. Unlike some other fields of endeavor, in investing you can do the same thing as yesterday but achieve completely different reported results. In the long run, the research and analysis you perform should overcome market forces; the fundamentals ultimately matter. But in the short run, markets can trump effort and insight."


  • American Express Is Too Cheap to Ignore

    One of Warren Buffett (Trades, Portfolio)’s favorite stocks has fallen significantly. After reaching its all time high of nearly $95 per share in July 2014, American Express (NYSE:AXP) has dropped continuously to only around $55 per share. Investors have seemed to lose confidence in this credit card company.


  • Stocks in the Spotlight

    Stocks ended down on Monday as they came under heavy pressure toward the end of the trading day. Stocks once again followed crude lower, which settled at $30 after finishing last week at $31.

    News is starting to get interesting for energy stocks as the reality of $30 starts to set in. For example, Halliburton presented "an enhanced set of proposed divestitures" to the U.S. Department of Justice earlier this month. Halliburton also laid off 4,000 workers last year in an effort to cut costs down. In Canada, where the cost to produce a barrel of crude is much higher, some producers are losing money on every barrel they sell. Companies operating in the Canadian Oil Sands include Canadian Natural Resources (NYSE:CNQ), Suncor Energy (NYSE:SU), to which Warren Buffett keeps adding, and Imperial Oil (IMO).


  • Western Union, Wells Fargo Among Popular High Yield Guru Stocks

    The following are companies with high and growing dividend yields that gurus are buying according to GuruFocus' All-in-One Screener.

    Western Union Co. (WU) has a trailing dividend yield of 3.6% with a three-year growth rate of 17.30% and a five-year growth rate of 45%. The stock is now trading with a trailing 12-month P/E multiple of 10.70 and an estimated forward P/E multiple of 9.34. During the last 12 months, the stock price has dropped by 2%.


  • American Express Down on Weak Earnings Report

    American Express (NYSE:AXP) continued its earnings descent, reporting lower fourth quarter and full-year earnings at the end of its fiscal year. For the fourth quarter, revenue was down 8% from the year-ago quarter to $8.4 billion. For the year, revenue was down 4% to $32.8 billion. Earnings also trended lower, with EPS down 12% from last year's fourth quarter at $1.23. For the year, EPS was $5.38, down from $5.56 in 2014.

    Descending revenue and earnings growth has been a trend for the company in recent quarters as the company’s leadership and strategic direction has been questioned by investors. In 2015, U.S. Card Services revenue gained 6%, while all other business segments were lower. For the year, International Card Services was down 9%, Global Commercial Services was 32% lower and Global Network and Merchant Services was down 4%.


  • 5 Warren Buffett Stocks Trading Near 52-Week Lows

    Warren Buffett (Trades, Portfolio) had an inarguably poor 2015, with many of his top positions down and stock of his own company, Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), falling around 13% for the year.

    Investors may view Buffett’s performance from different perspectives. His tried-and-true giant positioning in American stalwart companies suffered last year as investors borne on bull-market enthusiasm turned to astronomically priced growth stocks like Amazon.com Inc. (NASDAQ:AMZN) and Netflix Inc. (NASDAQ:NFLX), which many value investors – like David Einhorn (Trades, Portfolio) – believe are due for a fall back down to earth. Second, many of his peers, like Einhorn, Bill Gates (Trades, Portfolio) and Carl Icahn (Trades, Portfolio), have lost millions and billions in the market turmoil of 2016, in which, as CNN reported, only 18 companies in the S&P 500 dwelt in positive territory Thursday.


  • Some Thoughts on American Express

    American Express (NYSE:AXP) made news on Thursday with the announcement of a disappointing outlook for 2016 and 2017 as well as the more challenging competitive environment it had expected. The stock plummeted by more than 12% Friday.

    I have followed American Express and its rivals, including Visa (NYSE:V) and MasterCard (NYSE:MA), for awhile. While acknowledging the fact that American Express is still a great franchise, its moat has narrowed quite a bit. What happened Thursday and Friday reminded me of an excellent Bloomberg article that was published in October 2015. For investors who are interested in learning more about American Express, it is a great read because it revealed some of the behind-the-scenes stories that are usually not available to noninsiders.


  • Valuable Lessons From the Buffett Partnership Letters

    I have come across one of the largest compendiums of the early Buffett partnership letters, with letters from 1957 to 1970. It is important to remember that Buffett was investing smaller sums of money, and that he was able to reap his largest returns during this tenure. Among the letters, it is remarkable the amount of wisdom and insight that we can get, not only on investment strategy, but on the feel of the market and how to seize opportunities as they approach. In this article, I will comment on the overall expectations of a true value-investing strategy during both bull and bear markets.

    What to expect during a bear market


  • Why Buffett Keeps Loading Up on Phillips 66

    The casual observer may conclude from Buffett’s continued buying of Phillips 66 (NYSE:PSX) he is bullish on oil, but that’s not necessarily the case.

    Phillips 66 is primarily a refiner with 14 facilities. Together these produce in excess of 2 million barrels every day. In addition the company owns a chemical joint venture, CPChem, 60-plus natural gas processing facilities and 62,000 miles of pipeline.


  • Managing Bear Market Risk

    Preservation of capital is important to me in investing. Market risk is the challenge of the overall market and unpredictable price swings. I can select good companies and still have them pulled down with a market correction or crash. The stock market is often emotional and inefficient over the short term. Stocks fluctuate on news stories every day, and this is what creates buying and selling opportunities. Managing these risks through asset allocation can help reduce the volatility and down draft.

    I manage this type of risk by following the U.S. stock market value in relationship to their GDP. I watch the U.S. market because we in Canada often follow the States. If they crash, we usually go with them.


  • Berkshire Hathaway: Estimating Earnings Power

    I’ve spent the past few months reading Warren Buffett (Trades, Portfolio)’s letters to shareholders from the past 50 years. This is the first time I’ve read the letters from start to finish in chronological order, and I think it was a revealing exercise. I’ll have plenty to say about this over the coming months (I also have notes that I’ll gladly share with anyone who is interested – just message me with your email address).

    One of the most notable changes at Berkshire Hathaway (BRK.B) in the past 10 to 15 years has been the explosive growth in the noninsurance operating businesses. This quote from the 2011 shareholder letter is a good example:


  • How to Remain Calm Like Buffett in Turbulent Times

    As Martin Luther King Jr. Day has passed, one of his quotes still resounds: "The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy." As I was re-reading one of Warren Buffett (Trades, Portfolio)'s most famous articles, this New York Times piece, it becomes very clear that a true value investing strategy is tested during times of turbulence, but most importantly, the character to stay away from fear and seize those opportunities to establish aggressive positions.

    How was it possible that during the immense crisis that the markets were going through, there were some investors not only allocating all their available funds, but also asking for more contributions, as Seth Klarman (Trades, Portfolio) did? Buffett answered this with the following logic:


  • Value Trap Alert: American Express

    American Express (NYSE:AXP) provides charge and credit payment card products and travel-related services to consumers and businesses worldwide.


  • The Oracle Shared Insights on Making 50% a Year Managing Small Sums

    Many of us are familar with Warren Buffett (Trades, Portfolio)'s confidence in making 50% a year if managing small sums. But less familar to us is how he would go about it because it is rarely discussed.

    In a Q&A session with students from the University of Kansas in 2005, Buffett gave a rare specific answer to this question. Below is the dialogue quoted from the transcript that was posted on this link:


  • Larry Robbins Exits McDonald's, Paypal, Fossil

    Larry Robbins (TradesPortfolio) of Glenview Capital Management sold out several stakes in the third quarter.

    Glenview Capital Management, founded in 2000 by Larry Robbins (Trades, Portfolio), is a privately held investment management firm. Following are the trades with a high impact on the portfolio.


  • Stocks Bring High Dividend Yields to HOTCHKIS & WILEY

    HOTCHKIS & WILEY has focused exclusively on finding and owning undervalued companies that have a significant potential for appreciation. Following are the stocks that have high dividend yields in that portfolio.

    Denbury Resources Inc. (DNR)


  • Is General Motors Really This Cheap?

    Favorable macro trends and company-specific improvement have helped General Motors (NYSE:GM) remain a strong performing holding in our Top 20 Dividend Stocks portfolio.

    Earlier this morning, the company announced some good news for shareholders. GM raised its 2016 earnings outlook by 5%, boosted its dividend by 6%, and increased its share repurchase plan by 80%. Shares advanced by 2% to 3% in early morning trading.


  • Warren Buffett Buys Phillips 66 for Fourth Consecutive Day

    Warren Buffett (Trades, Portfolio) continues to build his stake in Phillips 66 (NYSE:PSX), reporting Monday his third purchase filing this month.

    Buffett’s company Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) said it bought 1,645,887 shares of the company on Jan. 7, at prices ranging from $76.45 to $78.01 per share. This represents a 2.64% increase from the number of shares Buffett owned the day before.


  • Buffett Trims Chicago Bridge & Iron, Goldman Sachs, Walmart

    Warren Buffett (Trades, Portfolio) has been called "The Oracle of Omaha" for his impressive investing prowess. He follows a value investing strategy that is an adaptation of Benjamin Graham's approach. Following are the stocks in which he reduced his stakes during the third quarter.

    He reduced his stake in Chicago Bridge & Iron Co. (CBI) by 78.74% with an impact of -0.34% on the portfolio. The current stake is 0.06% of his total assets and 1.89% of the company’s outstanding shares.


  • Alan Fournier Makes Modest Reductions in Middleby and Priceline

    Alan Fournier (Trades, Portfolio) manages Pennant Master Fund, Pennant Windward Master Fund, Broadway Gate Master Fund Ltd. and Pennant General Partner LLC

    He reduced his positions in 16 stocks during the third quarter; most of the reductions were below 10%:


  • Buffett on Making an American Capitalist


    The Investors Podcast has a new episode out about Roger Lownenstein's book, "The Making of an American Capitalist."


  • One of Warren Buffett's Favorite Dividend Stocks Is on Sale

    Warren Buffett (Trades, Portfolio) only owns two stocks in the energy sector, and they both pay a dividend – Suncor (SU) and Phillips 66 (PSX). Suncor’s dividend yield is 3.7%, and it has increased its dividend for 13 consecutive years.

    Buffett first bought into Suncor in 2013, investing around $500 million at the time. He subsequently purchased more shares during the third quarter of 2015, making Suncor close to his 20th-largest holding.


  • How Long Is Long Term?

    If you ask 100 investors, at least 90 of them will likely say that they are long-term investors. In fact, we often hear claims such as “according to the IRS, capital gains and losses are classified as long term or short term. If you hold the asset for more than one year before you dispose of it, your capital gain or loss is long term. If you hold it one year or less, your capital gain or loss is short term. My average holding period is longer than 12 months so I’m a long-tem investor.” But is anything over 12 months long term? Or do you have to hold your stocks for three to five years before you can call yourself a long-term investor? What about five years? Ten years? Or forever?

    I used to think that three to five years should definitely be considered long term, but my experiences in 2015 changed my thinking on this topic completely. Now I think it depends on how you think your return will be realized – business fundamental growth, multiple expansion, a combination of both, or special situations?


  • Will the U.S. Remain Supreme Against Emerging Markets?

    With global markets being dragged down by a slowing China, many are worried about the spillover effect into other developing economies. Unfortunately for emerging market investors, the negative effects wouldn’t be the start of underperformance. For a decade, emerging market equities have lagged those of developing markets.


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