To begin with, let’s use some wisdom from one of the world’s best investors, Peter Lynch. He ran a double digits return portfolio for 13 years before retiring. Peter Lynch told us that selling the best-performing assets and keeping the worst one equal to pulling out the flowers and watering the weeds. Not so smart.
How about Warren Buffett, the Oracle of Omaha, who held coca-cola and Geicko stocks for 20+years. When Warren buys a stock, it’s usually to hold it for a very long time. The proof of the pudding is in the eating. It’s clearly a trend for the successful portfolio manager to find a winner and to keep it.