News reports are often full of misinformation and misleading information.
It's often reported that Warren Buffet holds his stocks for years and even "forever".
No bullshit can be more bullshit than that.
He rearranges his potforlio regularly, which means he sells some of his holdings and uses the proceeds to buy something else.
And his so called long-term fundamental approach to investing has fatal flaws as evidenced by the 2008 financial meltdown when his entire investment went down nearly 50% in less than a year and could have gone down further till bankrupt had government not used taxpayer money to save the market.
The Archilles' heel in his investment method is his belief in long term performance of the economy and therfore the willingness to take hits which he thinks will eventually be over when the economy turns around.
Well, he was dead wrong in 2008 when the stock market went through the floor. Had government not used taxpayer money to save the market, his 40 years' success would have been all wiped out to nearly zero in only one year.
So what exactly was his Archilles' heel?
No stop-loss, or, no loss-cutting.
The sorry thing about him is that he has so far not admitted the weakness and flaw in his investment philosophy.
The worse thing is instead of thanking the poor taxing paying piblic for saving his ass, he turned around and publicly expressed gratitude to Obama and the government for saving the market and his investment.
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