{"id":23195,"date":"2023-12-14T23:56:00","date_gmt":"2023-12-14T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=23195"},"modified":"2026-03-24T10:00:08","modified_gmt":"2026-03-24T02:00:08","slug":"buffett-hold-for-long-haul","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/","title":{"rendered":"Is Buffett no longer hold for long haul? TSMC, HP, and US Bancorp cases study"},"content":{"rendered":"\n<p>Please check my affiliated post of &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/03\/16\/risks-and-disadvantages\/\">TSMC risks and disadvantages in Taiwan<\/a>&#8221; as well.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#TSMC_discussion_in_my_books\" >TSMC discussion in my books<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#Preface\" >Preface<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#Origin_of_this_article\" >Origin of this article<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#Eds_question\" >Ed&#8217;s question<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#There_is_no_quick_answer\" >There is no quick answer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#Buffett_decided_the_top_holdings\" >Buffett decided the top holdings<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#Buffetts_original_statement\" >Buffett&#8217;s original statement<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#2016_Berkshire_Hathaway_Shareholder_Letter\" >2016 Berkshire Hathaway Shareholder Letter<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#1996_Berkshire_Shareholders_Meeting\" >1996 Berkshire Shareholders Meeting<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#My_interpretation_of_Buffetts_views\" >My interpretation of Buffett&#8217;s views<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#Buy_and_hold_is_still_valid\" >Buy and hold is still valid<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#Good_companies_are_rare\" >Good companies are rare<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#What_kind_of_stocks_are_suitable\" >What kind of stocks are suitable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#How_to_select_suitable_companies\" >How to select suitable companies?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#Recent_cases_study\" >Recent cases study<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#TSMC\" >TSMC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#HP\" >HP<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#US_Bancorp\" >US Bancorp<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"TSMC_discussion_in_my_books\"><\/span>TSMC discussion in my books<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>I have discussed the company Nvidia (ticker:NVDA) in two recent books; including:<\/p>\n\n\n\n<p>In my book &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010889106?sloc=main\" target=\"_blank\" rel=\"noreferrer noopener\">The Rules of Super Growth Stocks Investing<\/a>&#8220;:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Sections 2-4, the entire section is dedicated to introducing the company TSMC<\/li>\n\n\n\n<li>Section 3-3, analyze the business development of technology companies to grasp the pulse of key industries<\/li>\n<\/ul>\n\n\n\n<p>In my book &#8220;<a href=\"https:\/\/www.books.com.tw\/products\/0010935641?sloc=main\" target=\"_blank\" rel=\"noreferrer noopener\">The Rules of 10 Baggers<\/a>&#8220;:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Section 3-2, the entire section is dedicated to introducing TSMC and the global semiconductor supply chain.<\/li>\n<\/ul>\n\n\n\n<p>People keep wondering &#8220;Buffett no longer hold for long haul&#8221;. That&#8217;s whay I have this post.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Preface\"><\/span>Preface<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Origin_of_this_article\"><\/span>Origin of this article<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Ed, a reader of my Chines blog, raised a question in the comment area of \u200b\u200bhis blog post &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/05\/07\/sloth-is-great\/\">Sloth is a great virtue in stock investment<\/a>&#8221; a few days ago. An excellent question about Buffett&#8217;s investing style explained by an investing friend. Since this issue is often mentioned and is worthy of discussion, it prompted me to write it into the article you are seeing now.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eds_question\"><\/span>Ed&#8217;s question<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Reader Ed\u2019s original question is as follows:<\/p>\n\n\n\n<p><em>In recent years, Berkshire Hathaway has a record of selling off its holdings, such as TSMC, Hewlett-Packard, and US Bancorp. Is this what his successor has done? Or no longer holding it for the long term?<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"There_is_no_quick_answer\"><\/span>There is no quick answer<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Before entering this article, let me emphasize: Based on my many years of personal research on Buffett, the Berkshire Shareholders Meeting, and Buffett\u2019s letter to Berkshire shareholders, I think this is a question that cannot be answered quickly with \u201cyes\u201d or \u201cno\u201d.<\/p>\n\n\n\n<p>And Buffett has clarified that he has not promised to hold any of his holdings permanently.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffett_decided_the_top_holdings\"><\/span>Buffett decided the top holdings<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Buffett said in 2022 that Buffett himself is responsible for overseeing Berkshire&#8217;s approximately US$350 billion securities investment portfolio and operating approximately 90% of it, while the remaining 10% is managed by investment deputies Todd Combs and Ted Weschler.<\/p>\n\n\n\n<p>It is easy to judge whether to buy for Buffett. All stocks with heavy holdings (such as the top ten holdings or those holding more than 5% of the shares) must be bought by Buffett. TSMC, Hewlett-Packard, and U.S. Bank are all among Buffett&#8217;s heavy holdings.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffetts_original_statement\"><\/span>Buffett&#8217;s original statement<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2016_Berkshire_Hathaway_Shareholder_Letter\"><\/span><a href=\"https:\/\/www.berkshirehathaway.com\/2016ar\/2016ar.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">2016 Berkshire Hathaway Shareholder Letter<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><em>You should be fully aware of one attitude Charlie and I share that hurts our financial performance: Regardless of price, we have no interest at all in selling any good businesses that Berkshire owns. We are also very reluctant to sell sub-par businesses as long as we expect them to generate at least some cash and as long as we feel good about their managers and labor relations. <\/em><\/p>\n\n\n\n<p><em>We hope not to repeat the capital-allocation mistakes that led us into such sub-par businesses. And we react with great caution to suggestions that our poor businesses can be restored to satisfactory profitability by major capital expenditures. (The projections will be dazzling and the advocates sincere, but, in the end, major additional investment in a terrible industry usually is about as rewarding as struggling in quicksand.) Nevertheless, gin rummy managerial behavior (discard your least promising business at each turn) is not our style. We would rather have our overall results penalized a bit than engage in that kind of behavior.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1996_Berkshire_Shareholders_Meeting\"><\/span>1996 Berkshire Shareholders Meeting<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When Buffett and Munger answered questions from shareholders at the Berkshire Hathaway shareholder meeting in 1996, they had the following wonderful conversation:<\/p>\n\n\n\n<p>Shareholders: Berkshire owns several companies \u2014 stock in several companies \u2014 which are called permanent holdings. In the early \u201970s, we had a two-tier market, the one-decision stocks, high P\/Es \u2014 50, 60 times earnings.  If that were to reappear again, would Berkshire\u2019s companies still be permanent? Or is there a price for everything?<\/p>\n\n\n\n<p>WARREN BUFFETT: Well, <em><strong>there are things that we think there\u2019s no price for. And we\u2019ve been tested sometimes and haven\u2019t sold them<\/strong><\/em>, but \u2014<\/p>\n\n\n\n<p>You know, my friend, Bill Gates, says, you know, it has to be illogical at some point.<em><strong> The numbers have \u2014 at some price, you have to be willing to sell something that\u2019s a marketable security, forgetting about a controlled business.<\/strong><\/em><\/p>\n\n\n\n<p><strong><em>But I doubt if we ever get tested on \u2014 there\u2019s only a couple of them in that category.<\/em><\/strong><\/p>\n\n\n\n<p>Actually, there \u2014 you know \u2014 I won\u2019t comment on that. (Laughs)<\/p>\n\n\n\n<p><strong><em>We really have a great reluctance to sell businesses where we like both the business and the people.<\/em><\/strong> <em><strong>So I don\u2019t think I\u2019d count on seeing many sales<\/strong><\/em>. But if you ever attend a meeting here, and there are 60 or 70 times earnings, keep an eye on me. (Laughs)<\/p>\n\n\n\n<p>Charlie?<\/p>\n\n\n\n<p>CHARLIE MUNGER: The so-called two-tier market created difficulties, I would say, primarily because a lot of people or companies were called tier one when they really weren\u2019t. They just had been, at some time, a tier one. If you\u2019re right about the companies, you can hold them at pretty high values.<\/p>\n\n\n\n<p>WARREN BUFFETT: <strong><em>Yeah, you can really hold them at extraordinary levels if you\u2019ve got \u2014 it\u2019s too hard to find. You\u2019re not going to find businesses that are as good.<\/em><\/strong><\/p>\n\n\n\n<p><em><strong>So then you have to say, \u201cAm I going to get a chance to buy back the same business at a lot lower price? Or am I going to buy something that\u2019s almost as good at a lot lower price?\u201d<\/strong><\/em><\/p>\n\n\n\n<p><em><strong>We don\u2019t think we\u2019re very good at doing that. We\u2019d rather just sit and hold the business and pretend the stock market doesn\u2019t exist.<\/strong><\/em><\/p>\n\n\n\n<p>That actually has worked out way better for us than I would\u2019ve predicted 20 years ago. I mean, that mindset is \u2014 or 25 years ago \u2014 that mindset is \u2014 there\u2019s been a fair amount of good fortune that\u2019s flowed out of that that I really wouldn\u2019t have predicted.<\/p>\n\n\n\n<p>CHARLIE MUNGER: But there, you\u2019re demonstrating your trick again, you know? Still learning. A lot of people regard that as cheating. (Laughter)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"My_interpretation_of_Buffetts_views\"><\/span>My interpretation of Buffett&#8217;s views<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buy_and_hold_is_still_valid\"><\/span>Buy and hold is still valid<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Hold for long haul after buying is still the most profitable and simplest way to hold stocks, but this approach has a very important prerequisite. The purchased company stocks must be suitable for long-term holding.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Good_companies_are_rare\"><\/span>Good companies are rare<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>My blog post &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/12\/good-companies-are-rare-two-or-three-will-make-you-very-rich-take-texas-instruments-as-an-example\/\" target=\"_blank\" rel=\"noreferrer noopener\">Great companies are rare, two or three will make you very rich<\/a>&#8221; is about this topic. Keep in mind that even Buffett has repeatedly said that there are very few opportunities that are worthy of investors&#8217; big bets. This is also the content of my previous post &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/07\/a-few-in-lifetime\/\" target=\"_blank\" rel=\"noreferrer noopener\">Do it right a few times in your lifetime is enough<\/a>&#8220;.<\/p>\n\n\n\n<p>This is why Buffett advocates that when choosing investment opportunities, investors should filter in such a way that there are only 20 investment opportunities in a lifetime.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_kind_of_stocks_are_suitable\"><\/span>What kind of stocks are suitable?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Yes, the question comes back to what kind of stocks are suitable for long-term holding.<\/p>\n\n\n\n<p>This is the company that Buffett identifies as a &#8220;permanent&#8221; holding of Berkshire Hathaway. Buffett has repeated this idea on many occasions. These companies are <strong><em>the companies controlled<\/em><\/strong> by Berkshire Hathaway mentioned by Buffett in the previous article.<\/p>\n\n\n\n<p>In fact, in addition to companies that have been completely acquired and privatized by Berkshire Hathaway and become Berkshire Hathaway subsidiaries, Buffett also holds a large number of shares in a few listed companies, as he has repeatedly stated, and all of them are for long-term holdings of more than 20 years, for this part, please refer to the list of these companies compiled for everyone in my blog post &#8220;&#8221;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/17\/possibility-of-long-term\/\">Possibility of long-term holdings, Deep dive on Buffett&#8217;s case<\/a>&#8220;.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_select_suitable_companies\"><\/span>How to select suitable companies?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As mentioned before: the company stocks you buy must be suitable for long-term holding, and what kind of stocks you buy must be suitable for long-term holding. These two core principles are. In my blog post&#8221;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/03\/20\/long-term-investment\/\">How Buffett Structures His Long-Term Investment Portfolio<\/a>&#8220;, I detailed Buffett&#8217;s method of establishing his long-term holdings.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recent_cases_study\"><\/span>Recent cases study<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"TSMC\"><\/span>TSMC<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As I myself have repeatedly reminded Taiwanese investors in many articles on this blog &#8211; do not have the bias of only having positive comments about TSMC (ticker: TSM) and not tolerate any negative comments &#8211; once there are any Bias will affect correct judgment, especially investment, which is a professional judgment that pays great attention to thinking, facts and patience. Once too many personal preferences are mixed in, you will definitely pay a heavy price.<\/p>\n\n\n\n<p>Buffett does not deny that TSMC is a good company (please note: good companies and good stocks are two different things). He will sell mainly because of geopolitical risks. Therefore, he regretted and sold out after holding TSMC for a very short period of time. This is Buffett&#8217;s dream. A rare investment behavior. I personally think Buffett&#8217;s statement is more euphemistic, and this is by no means the only reason. He just said this so that everyone can accept it; He gave himself an out when he dump most the stake and to admit his mistakes.<\/p>\n\n\n\n<p>From all aspects, TSMC is really not a company that Buffett emphasizes is suitable to buy and hold for long haul (see the analysis of my previous three related posts for details: &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/16\/common-creteria-buffett\/\">Common creteria when Buffett pick up stocks<\/a>&#8220;, &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/27\/buffett-portfolio\/\" target=\"_blank\" rel=\"noreferrer noopener\">The commonalities of Buffett portfolio \u2013 cheap, fixed income, repurchase<\/a>&#8220;, and &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/04\/09\/buffetts-acquisition-criteria\/\">Buffett&#8217;s Acquisition Criteria<\/a>&#8220;). <\/p>\n\n\n\n<p>Fom my long-term research on Buffett, my impression is that Buffett rarely holds such a large number of shares in a company (it was Berkshire&#8217;s tenth largest holding at the time).<\/p>\n\n\n\n<p>If TSMC is not the only case, it is almost completely sold out within one year of holding it (86% of TSMC&#8217;s holdings were sold within one quarter of the fourth quarter of 2022). TSMC is also a rare case.<\/p>\n\n\n\n<p>In short, his final judgment illustrates his decision. Buffett ultimately does not agree that TSMC is suitable for buying large quantities of stocks and holding them for a long time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"HP\"><\/span>HP<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The purchase was made in the first quarter of 2022 and increased along the way, bringing Berkshire&#8217;s stake in Hewlett-Packard (ticker: HPQ) to more than 10%. But he has been out since September 2023. With Buffett&#8217;s style, he may eventually sell all HP shares. HP is much easier. I personally think that Buffett is not good at investing in technology stocks and it is not within his circle of competence. At least for HP, he is admitting his mistakes and getting out.<\/p>\n\n\n\n<p>HP has a very low price-to-earnings ratio, a high yield rate, and the implementation of treasury stocks (for details, see my previous post &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/03\/04\/hp-important-good-company\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does HP make money? The pros and cons of investing in HP<\/a>&#8220;); therefore, it is in line with Buffett&#8217;s stock selection style (for details, see My previous posts were &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/16\/common-creteria-buffett\/\">Common creteria when Buffett pick up stocks<\/a>&#8221; and &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/27\/buffett-portfolio\/\" target=\"_blank\" rel=\"noreferrer noopener\">The commonalities of Buffett portfolio \u2013 cheap, fixed income, repurchase<\/a>&#8220;).<\/p>\n\n\n\n<p>As I said in my previous post  &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/03\/04\/hp-important-good-company\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does HP make money? The pros and cons of investing in HP<\/a>&#8221; emphasizes: HP is a good company, but not a good stock. HP is a typical declining company among technology stocks and has no prospects. It is not suitable for long-term investment and is not suitable for judgment by Buffett&#8217;s preferred value investment method. For details, please see the special article in Section 3-2 of my book &#8220;Super Growth Stock Investment Rules&#8221;, and I will not repeat the content in the book here.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"US_Bancorp\"><\/span>US Bancorp<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>US Bancorp (ticker: USB) is the fifth largest bank in the United States, with more than 3,000 branches around the country, mainly located in the western and midwestern United States. It is a typical banking stock within Buffett&#8217;s circle of competence.<\/p>\n\n\n\n<p>As early as the first quarter of 2006, Berkshire had invested in U.S. Bank and held it for at least 16 years, which is not a short holding period. At the end of the fourth quarter of 2022, Berkshire began to reduce its holdings in U.S. Bank. At that time, the reduction was as high as 91% compared with the end of the third quarter, which heralded a huge change in Buffett&#8217;s thinking.<\/p>\n\n\n\n<p>Buffett said at the 2022 shareholder meeting: The crisis in the banking industry in the United States has long been foreshadowed, and the U.S. banking system has become too complex. He had been selling bank stocks before, first at the start of the coronavirus pandemic and then in the past six months as banks increasingly faced problems such as mismanagement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As I said in my previous post &#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/03\/04\/hp-important-good-company\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does HP make money? The pros and cons of investing in HP<\/a>&#8221; addressed: <em><strong>A good company will not necessarily be a good stock. <\/strong><\/em>This is a big myth that most people have when investing in stocks. <\/p>\n\n\n\n<p>\u201cset your own rules and stick to them; never argue with the market; never make a play you can\u2019t afford; never give way to irrational exuberance. Above all, don\u2019t be a sucker.\u201d<br>\u2015&nbsp;<strong>Jesse Lauriston Livermore<\/strong><\/p>\n\n\n\n<p>The market is always right.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"155\" height=\"103\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2023\/12\/bh-1600x1200-1.jpg\" alt=\"hold for long haul\" class=\"wp-image-23196\"\/><figcaption class=\"wp-element-caption\">credit: analisedeacoes.com<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"block-d8a344e9-4edc-4dc1-b981-40aa61d258b5\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/03\/23\/tsmc-ceo-appalling-remarks\/\">&#8220;TSMC CEO appalling remarks on Chinese robots, inferiority to nVidia Huang<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/09\/22\/chang-refuted-by-yeh\/\">Morris Chang refuted by Yeh Wanan, Taiwan was unwilling to invest in TSMC<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/10\/21\/abandoned-nuclear-hit-tsmc\/\">Taiwan&#8217;s abandoned nuclear hit TSMC hard, profit margins decrease 1% by electricity price increase<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/03\/16\/risks-and-disadvantages\/\">TSMC risks and disadvantages in Taiwan<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/03\/02\/tsmc-moat-competitiveness\/\">165 billions investment proved TSMC moat and competitiveness is fragile<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/19\/nubank-advantages\/\" target=\"_blank\" rel=\"noreferrer noopener\">What company is Nubank owned by Buffett? How it makes money and its advantages?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/\" target=\"_blank\" rel=\"noreferrer noopener\">What company is Snowflake owned by Buffett? Where is its value?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/23\/snowflakes-competitiveness\/\">Deep dive on Snowflake&#8217;s competitiveness<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/06\/17\/wells-fargo\/\">Wells Fargo, a major holding once praised by Buffett and Munger<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/12\/14\/buffett-hold-for-long-haul\/\" target=\"_blank\" rel=\"noreferrer noopener\">Is Buffett no longer hold for long haul? TSMC, HP, and US Bancorp cases study<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/03\/supermicro-is-not-worth\/\" target=\"_blank\" rel=\"noreferrer noopener\">Supermicro, a repeat offender of scandals, valuation is not justified and unsustanable, no worth for long-term holding<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/06\/artificial-intelligence-listed-companies\/\" target=\"_blank\" rel=\"noreferrer noopener\">Top five lucrative artificial lucrative intelligence listed companies<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/01\/09\/tsmc-valuation\/\">Why is TSMC valuation much lower than US peers?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/04\/01\/tsmc-dcf-value\/\">What&#8217;s TSMC DCF intrinsic value?How to calculate it quickly with a free tool?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/05\/07\/sloth-is-great\/\">Sloth is a great virtue in stock investment<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/08\/12\/good-companies-are-rare-two-or-three-will-make-you-very-rich-take-texas-instruments-as-an-example\/\" target=\"_blank\" rel=\"noreferrer noopener\">Great companies are rare, two or three will make you very rich<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/07\/a-few-in-lifetime\/\" target=\"_blank\" rel=\"noreferrer noopener\">Do it right a few times in your lifetime is enough<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/16\/common-creteria-buffett\/\">Common creteria when Buffett pick up stocks<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/04\/27\/buffett-portfolio\/\" target=\"_blank\" rel=\"noreferrer noopener\">The commonalities of Buffett portfolio \u2013 cheap, fixed income, repurchase<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/04\/09\/buffetts-acquisition-criteria\/\">Buffett&#8217;s Acquisition Criteria<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"http:\/\/s%26p%20500%20index%2C%20the%20only%20stock%20worth%20holding%20forever\/\" target=\"_blank\" rel=\"noreferrer noopener\">S&amp;P 500 index, the only stock worth holding forever<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/10\/16\/long-term-investors\/\" target=\"_blank\" rel=\"noreferrer noopener\">Stocks are the best bet for long-term investors<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/03\/20\/long-term-investment\/\">How Buffett Structures His Long-Term Investment Portfolio<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/07\/buffett-investment-idea\/\">What helps Buffett to get his investment idea?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/17\/possibility-of-long-term\/\">Possibility of long-term holdings, Deep dive on Buffett&#8217;s case<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/21\/why-long-term-investment\/\" target=\"_blank\" rel=\"noreferrer noopener\">Why long-term investment is better?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/07\/investors-should-pay-attention-to-the-annualized-rate-of-return-irr-how-to-calculate\/\" target=\"_blank\" rel=\"noreferrer noopener\">Investors should care annualized rate of return (IRR), calculate with free IRR Calculator<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/03\/04\/hp-important-good-company\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does HP make money? The pros and cons of investing in HP<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/06\/04\/how-dell-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does the resurrected Dell make money?<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Regarding stock hold for long haul, Buffett has clarified that he has not promised to hold any holdings permanently.<\/p>\n","protected":false},"author":1,"featured_media":23196,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35,15,402,80,11],"tags":[48,49,354,260,746],"class_list":["post-23195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-long-term-investing","category-charlie-munger","category-jesse-livermore","category-portfolio-management","category-buffett","tag-brk-a","tag-brk-b","tag-hpq","tag-tsm","tag-usb"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/23195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=23195"}],"version-history":[{"count":68,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/23195\/revisions"}],"predecessor-version":[{"id":41352,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/23195\/revisions\/41352"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/23196"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=23195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=23195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=23195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}