Does Buffett Hold Stocks Forever

Short-term investment, long-term investment or hold stocks forever? Buffett tells us how he did it. Question: Why would you hold stocks forever, if the fundamentals change permanently? (Buy and hold) Buffett: We don’t—we sell plenty. If we lose confidence or conditions change, we sell. When in doubt, we keep holding. But for [our wholly-owned] companies, […]

What is Economic Franchise

Economic franchise is one of the most important investing concepts used by Warren Buffett. Companies with economic franchise are rare in the business world. They are great businesses which enjoy pricing power and could stand incapable management. In his 1991 letter to Berkshire Hathaway shareholders, Warren Buffett explained the concept of economic franchise: “An economic […]

Warren Buffett on Stock Repurchase

One usage of retained earnings we often greet with special enthusiasm when practiced by companies in which we have an investment interest is repurchase of their own shares. The reasoning is simple: if a fine business is selling in the marketplace for far less than intrinsic value, what more certain or more profitable utilization of […]