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I've been thinking a lot about longterm holdings. Besides the advantage of not paying taxes, if you are still in your working life, there is no reason that you have to sell to invest in something else. You just keep investing paycheck to paycheck in whatever is available at the time. Three examples recently got me thinking about this. Buffett talks about Citi Services preferred, which he sold shortly after he bought it, for a small profit and it went on to be a multibagger. He did fine, but if he held onto it, it would've worked out fine too. Munger's mention last year of the oil royalty that he bought for himself for $1,000 in the 1960s and it still pays him $70k a year even decades later. Joel Tillinghast still has the first stock he bought when he was a child (!), which went through several mergers, but currently pays a dividend that is much higher than his original purchase price. And one of his 1000 baggers was Hansen's Natural, which later became Monster Beverage. At times it got pricey, but he just had the patience to sit on it because the company was getting better. If the company isn't in decline, and you have capital available to buy the other things you see, why sell when the compounders are so few and far between? Some of Peter Lynch's best returns came from things like Dunkin Donuts which he held for years, not ones that he sold after a quick pop. Even Phil Fisher's record wouldn't be worthy of talking about if he didn't hold Motorola until the day he died. I can understand dancing in and out if you're going to invest in a cyclical business like energy or shipping, but I definitely think that there is something to deciding which stocks are Tinder dates and which ones are marriage material. If you are getting a deal in a cheap stock, in an industry with bad economics, then it's a trading sardine. But if you managed to get into something with a long runway and in a business with a higher than average return on invested capital, then as Munger said, over time your return should match the returns on the business. If those businesses are rare, then why sell and pay taxes to look for quick hits when these businesses come up so rarely?

Yup. Textbook vs real world. Rates rising means debt will be more expensive and therefor it will HAVE TO! dent profits…..real world? Go look at most balance sheets. Debts a non issue for most. Add in a perfect excuse to jack up prices…it was visible from afar for sure. Mostly everyone was prepared. As we discussed earlier, the ones who get fucked are the mom and pop companies. Same as COVID.