Buffet was wrong!
Or maybe even he has changed his mind by now. I don't know.
What I do know is that the strategy of buying and holding "forever" doesn't make any sense.
You can make money by buying undervalued stocks, holding them for as long as it takes until their price reflects their value (or better yet, they become over-valued), but why keep holding them after that?
If you only buy stocks that are under-valued, what is the advantage in holding onto that stock once it becomes over-valued?
And if you love the management and business plan today, who's to say they will be any good 20 years from now?
Best case scenario: buying undervalued stocks and holding them forever will give you the potential for a short-term gain (5 years or however long it takes for the market to realize the hidden value) and will give you "market perform" after that.
Maybe this is why B-H is beginning to perform as a surrogate index fund?
As a general rule I'm not smarter than Warren. So what am I missing here?