The message is that once you have bought a good asset, you should hold it for the long term.
There will be economic and business cycles in between but a good asset, bought at a reasonable valuation, will give you good returns in the long run.
Buffet further says that if you are a non-professional and cannot pick stocks, you still have an option of investing in stocks. All you need is a diversified portfolio of good businesses which you can easily own through index.
“The goal of the non-professional should not be to pick winners—neither he nor his “helpers” can do that—but should rather be to own a cross-section of businesses that in aggregate are bound to do well."
Experts argue that investors should buy good companies and hold it for the long term. In case you find it difficult to identify stocks, you can simply invest through an index fund which is also cost effective in terms of management fee.
The idea is to own businesses which will do well and create wealth over time.
There will be economic and business cycles in between but a good asset, bought at a reasonable valuation, will give you good returns in the long run.
Buffet further says that if you are a non-professional and cannot pick stocks, you still have an option of investing in stocks. All you need is a diversified portfolio of good businesses which you can easily own through index.
“The goal of the non-professional should not be to pick winners—neither he nor his “helpers” can do that—but should rather be to own a cross-section of businesses that in aggregate are bound to do well."
Experts argue that investors should buy good companies and hold it for the long term. In case you find it difficult to identify stocks, you can simply invest through an index fund which is also cost effective in terms of management fee.
The idea is to own businesses which will do well and create wealth over time.
