Originally posted by wiseowl
Originally posted by abhishekbasu
There are lots of reasons why people buy and hold stocks. Peter Lynch sometimes bought stocks just to be keyed in on its business. The thought behind it is that you tend to watch the companies that you are invested in more closely than others. Same for Rakesh Jhunjhunwala in India.
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Today there are several other ways to stay clued in to the business ; buying a stock is not a necessity. Annual reports are freely available on a company's website (and in many other places) and so are transcripts and audio recordings of conference calls. There are several business newspapers and news channels. Watching from the sidelines is more easily possible these days than earlier. Of course, one needs to have patience.
"If you don't feel comfortable owning something for 10 years, then don't own it for 10 minutes." - Warren Buffett
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I think you missed the point that I was trying to make.
1. Don't you think Rakesh Jhunjhunwala/Peter Lynch has/had access to annual reports or newspapers or audio conferences or whatever else you mentioned? Sometimes, people buy into a stock so that they are more
attentive to the developments in the company. That has nothing to do with
accessibility of information.
2. Buffet is talking about "
owning", not buying or selling. I absolutely agree with that. If I am not happy with a stock I
own, I would rather sell. On the other hand, if I am not willing to BUY today, does not necessarily mean I will sell today.