yes, he proudly admits that he has been down over 50% in one year twice in his life. Maybe some of his shareholders were selling but he was still buying. To call him "buy and hold" isn't really accurate. More like "hold and buy." I would love to hear him defend "averaging down" against most et posters.
As an investor, when your holdings take a nose dive, you have to determine why they fell before deciding whether to buy more or exit with a large loss. In Buffets case, however, his fund tends to own a controlling interest, so he has an option not available to most investors, i.e., that of stepping in and taking an active role in a company.
you got that right my friend Like the man said "after we bought Geico we stopped buying stocks and started buying companies."
If Warren Buffet ever bothers replying, his answer would be very interesting ( It would be singular if in his answer he talks about "Rolling the Dice" like in Las Vegas).
Value investors buy more as the price falls. Traders buy more as the price rises. Both have advantages and disadvantages.
I would love to see Mr. Buffet prove his point beyond partisan hyperbole and bloviation by announcing that he set aside deferred and capital gains treatment and paid his personal income taxes at the ordinary income rate, just like his personal secretary, in order to set an example for others in his profession and income bracket.
Buffet takes a meager salary and abides by the same tax rules you do. He never said berkshire doesn't pay a lot of taxes. It does as it marks gains and losses and generates income - he doesn't because he never sells his stock. There are no tax shelters, carried interest, SPVs, etc.
or you could look at it this way....the amount of taxes his secretary pays are outrageous, even more than a billionaire pays
TEA baby, taxed enough already. Got a problem? Come up with some other solution than taxing me more. Perhaps cutting spending? How would your life or my life or any child's life be harmed if we quit spending money on The Department of Education? I don't even know what they do. Do you? Or does anybody?
hell, my parents never even needed to say the "Pledge of Allegiance" in school. Who knows how many tax dollars from my dad were spent implementing that thing? Money I could have used for a new baseball glove. All to compete with the Soviet Union. And look how they turned out. And we are not far behind if we keep doing what they were doing.