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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Pink Minion who wrote (45398)	4/12/2001 3:37:29 PM
From: Proud_Infidel	Read Replies (3) \| Respond to of 70976

Re:My favorite saying from the poster kid of LTBH, Warren Buffett is: "There are two important rules to the stock market." 1. Not to lose money. 2. Not to forget the first rule. You are contradicting yourself by using Buffett as an example of why one should not Buy and Hold. Buffett is the ultimate LTBH'er. Most of his positions are decades old. Here is another Buffett quote: Buffett wrote in his 1996 annual report that "inactivity strikes us as intelligent behavior. Neither we nor most business managers would dream of feverishly trading highly profitable subsidiaries because a small move in the Federal Reserve's discount rate was predicted or because some Wall Street pundit had reversed his view on the market. Why, then, should we behave differently with our minority positions in wonderful businesses?" BTW, 115 to 34 is painful only if one looks at it day to day. In the next decade, AMAT will have had several more splits and people who are sitting on hundreds of shares now will be sitting on thousands by then. And yet every cycle we will see people trade for 10% here and 20% there, all the while LTBH will probably yield 30% annually for the next 10 years from current levels; and this is without any worry of jumping in and out, without all of the taxes and commissions paid, and without the headache of paperwork and the IRS etc etc. BK