Warren Buffett's Long-Term Stock Ownership Philosophy Drives Berkshire's 20% Annual Returns

Warren Buffett's long-term investment philosophy emphasizes owning stocks only if one would be happy holding them even if the market closed for a decade, a principle that has helped Berkshire Hathaway achieve nearly 20% annual returns over decades. Research supports Buffett's approach, showing that frequent portfolio checking and game-like trading app features can lead to poorer investment decisions and increased risk-taking. While Vanguard and industry experts agree that many investors do not need financial advisors for basic investment selection, advisors provide valuable support in navigating complex financial planning and emotional aspects of investing, especially in retirement. A recently highlighted 150-page investment masterwork compiles wisdom from legendary investors like Benjamin Graham and Howard Marks, underscoring value investing and psychological discipline principles applicable across traditional stocks and cryptocurrencies. Lew Sanders, a veteran value manager, stresses identifying whether market anxieties are temporary or structural to avoid value traps and seize genuine value opportunities amid high equity valuations and evolving economic conditions. These insights collectively underscore the enduring importance of disciplined, long-term, research-driven investing strategies over reactive or speculative behaviors.