No strategy is without flaws, and buying and holding equities is no exception. One of the more common critiques of the practice is that the fundamental outlook – even the long-term outlook – of a company can change in extreme situations, and in such scenarios you should take action and sell, rather than passively sit around and do nothing.
Even the Oracle of Omaha, as Buffett is known, has made mistakes. His slow recognition of the e-commerce revolution that was challenging Wal-Mart Stores (WMT) caused him to dramatically underperform the market and miss out on billions in gains between 2005 and 2017.
Source: MSN Money
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