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Josh Brown: How Two Of History’s Greatest Investors Deal With Losses
FYI: It’s been a tough month for investors. As of yesterday, roughly half of the stocks in the S&P 500 have fallen into bear markets, with declines greater than 20%. International stock markets have fallen dramatically, with the losses accelerating on the heels of the latest Asian currency “event”. Regards, Ted http://thereformedbroker.com/2015/08/13/how-two-of-historys-greatest-investors-deal-with-losses/
I think there's very few things where I can really say with all certainty that they are "forever" holdings, or even "very long-term holdings". Railroads. Abbott. Ecolab has become one and has become an increasingly large holding. Lot of healthcare-related stuff. Visa and Mastercard.
There's the long-term theory and the long-term reality and I think lately I have trimmed or dumped some longer-term holdings where the theory was there but perhaps the stomach for the potential reality - and I do think things are turning South - wasn't.
Well Buffett seems to prefer stuff he can hold forever but Tepper, not so much. I think both would say that they have convictions in their 'buys' which is why they are willing to roll with the hit when the collective market goes briefly against them. Not everyone is programmed to do that however but in most cases it works assuming your holding the right stuff.
I have a few of those in my own portfolio as we speak - EPD, KMI and MMP. Even AAPL, just this week. I've bought more. Ask me in a year or two how that worked out. I certainly can not say that I will take them to the grave with me but for now they are paying me well to be their friend.
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There's the long-term theory and the long-term reality and I think lately I have trimmed or dumped some longer-term holdings where the theory was there but perhaps the stomach for the potential reality - and I do think things are turning South - wasn't.
I have a few of those in my own portfolio as we speak - EPD, KMI and MMP. Even AAPL, just this week. I've bought more. Ask me in a year or two how that worked out. I certainly can not say that I will take them to the grave with me but for now they are paying me well to be their friend.