1/ I have a confession to make. I'm not a buy-and-hold type of investor. My turnover each year would probably be considered too high by most value investors' standards. Because Seth Klarman has a better way with words than myself, I'll let him explain my philosophy...
2/ "Some investors buy and hold for the long term, stashing their securities in the proverbial vault for years. While such a strategy may have made sense at some time in the past, it seems misguided today.
3/ This is because the financial markets are prolific creators of investment opportunities. Investors who are out of touch with the markets will find it difficult to be in touch with buying and selling opportunities regularly created by the markets.
4/ Today with so many market participants having little or no fundamental knowledge of the businesses their investments represent, opportunities to buy and sell seem to present themselves at a rapid pace.
5/ Given the geopolitical and macroeconomic uncertainties we face in the early 1990s and are likely to continue to face in the future, why would abstaining from trading be better than periodically reviewing one's holdings?"
Seth Klarman, Margin of Safety
Seth Klarman, Margin of Safety
