Our Favorite Holding Period Is Forever

Buffett wrote this in his 1988 Berkshire Hathaway Chairman's Letter, specifically in the context of justifying two major new stock positions Berkshire had taken: Federal Home Loan Mortgage and Coca-Cola. He stated: "We expect to hold these securities for a long time. In fact, when we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever." Berkshire had spent $1 billion buying Coca-Cola stock throughout 1988 and 1989, and Buffett has never sold a single share.