I have been following Brookfield Asset Management for the past 15 years. It is a wonderful company that eschews short term market noise and stands fast and strikes when others lack the desire and/or capital to do so. They are among the most long-term orientated investors out there. Brookfield is one of our top holdings and we will keep on buying it on any price weakness for the foreseeable future.
Here’s a link to a great post by Michael Batnick that ponders the fact that Warren Buffett almost sold, rather than bought Berkshire Hathaway:
I would tend to believe that Warren Buffett would have found another vehicle for his investment acumen, but you never know…
Now although this story focuses on Warren Buffett, I believe that the real lesson comes not in emulating Buffett, but in avoiding the mistake of the guys that tried to low-ball him.
All too often investors pass up excellent opportunities by being far too fixated on short term price levels. For instance, if you think that the price of a stock can grow significantly, then there is rarely an excuse to try to be too cute when buying it. What usually happens is that being cheap ends up being quite expensive. By trying to buy a stock for 20 cents cheaper, you tend to end up paying a considerably higher price a some point in the future, all the while knowing that you should be owning the stock.