4 lessons for investors on the example of Warren Buffett's portfolio (3)

2. Set rules, but break them if necessary
It is known saying of Warren Buffett, that his favorite holding period is for good, and if you are worried about the idea that you hold shares for 10 years, do not hold them even for 10 minutes. Of course, it is entirely consistent with his personal doctrine to buy good companies and hold them for a long time.
However, Buffett did not hesitate to violate this rule if necessary. In contrast, shares of CocaCola and AmericanExpress (NYSE: AXP), located in Berkshire's portfolio from 1987 and 1964 respectively, the holding has invested in company Deere & Company (NYSE: DE) only for four years - 2012-2016, and then sold the asset, possibly in connection with the decline in agriculture. The holding owned shares in KinderMorgan (NYSE: KMI) only for one year, in 2015-2016, the shares were acquired by Buffett's managers, not by the Oracle of Omaha himself. The Company from time to time from 2009 to 2014. owned shares of ExxonMobil (NYSE: XOM).
Of course, getting rid of the assets - it is rather an exception to Buffett's portfolio, not the rule, but also during tough investment strategy you should be flexible enough to admit mistakes or receive benefit from an unexpected opportunity.