At the annual Berkshire Hathaway shareholder meeting live streamed on Yahoo Finance, Warren Buffett discusses stock buying tactics.
BECKY FAST: Sir. Buffett has for decades adhered to the philosophy of buying and holding or holding forever was too short a time. Is that a misunderstanding on my part, or has his philosophy changed? It appears to be a much larger turnover in the equity portfolio recently.
WARREN BUFFETT: I do not think there is that much turnover.
CHARLIE MUNGER: No, but there is too much.
WARREN BUFFETT: What?
CHARLIE MUNGER: There is way too much.[LAUGHTER]
WARREN BUFFETT: Yes.
CHARLIE MUNGER: It̵
WARREN BUFFETT: Yes, I agree. The truth is that our companies are stocks. So we own $ 400 or $ 500 billion, maybe more in businesses. We do not turn them over at all. We do not resell companies. We probably could. We do not even get into what we could do, but we do not. We do relatively little, and Charlie says we would do better if we – not a “we” – if I had done less.[LAUGHTER]