Warren Buffett’s investment in Apple has been nothing short of remarkable. With the stock skyrocketing from $23 to $242 since his purchase in 2016, delivering a staggering 952% return, it’s evident that holding onto quality shares for the long term can yield impressive results. While buying at the right price is crucial, the often overlooked aspect of holding onto investments is equally important.
-
Holding for Returns:
- Charlie Munger, Buffett’s trusted partner at Berkshire Hathaway, emphasized that investment success doesn’t come from constant buying or selling, but from holding onto quality assets. The same principle applies to Berkshire’s Apple investment, where selling the stock at seemingly high valuations would have resulted in missed opportunities for substantial gains.
- When to Sell:
- While holding onto investments for the long term is crucial, there are instances where selling may be warranted. For Apple, potential issues such as political tensions with China and legal challenges could impact the stock’s future performance. However, the company’s strong growth in services presents a balancing factor, emphasizing the need for careful consideration before making a decision to sell.
Investors can learn from Buffett’s strategy of holding onto quality shares and not giving in to the temptation of selling too early. While reducing Berkshire’s stake in Apple was attributed to tax reasons, investors should focus on the company’s growth prospects and overall value before deciding to sell. Even if a stock appears expensive, it’s essential to look beyond the surface and consider the underlying business’s potential for further growth. By striking a balance between buying at the right price and holding onto investments, investors can maximize their returns in the stock market.
Leave feedback about this