I was watching a video on advice from Warren Buffet. His strategy is to hold onto stocks, "forever". He said if it gives you 10-15% in a year, that is good. What I don't understand, is where is this gain coming from? If you never sell anything, how do you make any profit?
It's coming from the price someone is willing to pay you for that stock you bought and are holding. And, you don't make a penny profit until you actually sell it.
You need to sell something eventually to make profit. Or if the stock pays a dividend, then you are making something from that.
He doesn't literally mean hold it FOREVER, he means hold it for 10, 20, 30, 40 years, however long it may be before you sell it. If you're 25 years old, maybe he says hold it for 30 years. Obviously you eventually sell it so you can retire! Unless of course you can live without the money and want to pass your investment on to your spouse/children.
I have half my portfolio on long term dividend plays. See this link for some ideas: https://stockaholics.net/threads/dividend-investing-newsletter-for-november.3070/#post-60504
Thanks. I'm in the SPHD etf and a couple of div stocks. It seems most on here are active traders and I was wondering if there were any div folks. I enjoyed your Ark quote. Thanks again Jerry.
