“Our favorite stock holding period is forever.” – Warren Buffett
I want to talk to you about some of the best advice I’ve ever received from one of my favorite investors, Warren Buffett. The key to successful investing is buying a great company when it’s on sale and then holding it for long periods of time.
In this video, I explain why a buy and hold strategy can pay off for you in big ways.
There’s truly nothing on the planet that can produce wealth like a great company that you can buy at a great price and hold.
In a nutshell, if you bought Walmart when it was just getting going as a public company in the 1970’s and it doubled it’s growth rate every 4 years. In 32 years when you’re ready to retire, Walmart has doubled 8 times.
What this means is, if you invested 10,000 dollars into Walmart, and 32 years later, when you’re ready to retire your $10,000 has compounded into about $2,400,000. By literally doing nothing, you’ve turned $10,000 into $2.4 million. Compound growth rates are hard to understand, but once you understand them you’ll get rich.
That’s why buying and holding can be so powerful. Especially, if you’re starting early.
Invest Like Warren Buffett
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Featured Photo Credit: Stuart Isett/Fortune Most Powerful Women/Flickr, used under a Creative Commons license.
On the InvestED podcast, Phil and his daughter Danielle shine a light on the successful investing strategies that gurus like Warren Buffett have used for 80 years. Listen in for a great stock market education on basics, learn how to invest on your own, and follow along with real-time examples and investing tips from week to week.