Buffett famously said his favorite holding period is "forever." That’s not just a cute quote; it’s the core of the Berkshire Formula. He doesn’t try to buy low and sell high next week; he buys a business he likes and lets it compound.
Imagine planting a tree. You don’t dig it up every few months to see if the roots are growing, right? That would kill it. Yet that’s exactly what most investors do with their stocks. The Berkshire Formula says: pick good soil (a solid company) and water it (hold it) for years and years. The magic happens when you stop looking at the stock price every five minutes.