Buy-and-hold investing yields 1% to 3% extra annually in tax savings
David Senra · Li Lu and Charlie Munger and Warren Buffett · Sep 25, 2024 · at 14:41
David Senra discusses Charlie Munger and Li Lu's shared investment philosophy regarding long-term ownership over frequent stock trading.
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“Sit on your ass investing. You're paying less to brokers. You're listening to less nonsense, and if it works, the tax system gives you an extra one, two, or three percentage points per year. This important investment philosophy assumes that one is better off buying a business with exceptional business economics, working in its favor, and holding it for many years than engaging in a lot of buying and selling, trying to anticipate market trends.”
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