Buffett Warns of Liquidity Curse

In his annual letter to shareholders, Warren Buffett promotes his buy-and-hold approach to investments for professionals, calling stock market liquidity a curse for many equity holders.

Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc., cited a farm he’s owned since 1986 to caution individuals against frequent buying and selling of stocks.

Investors should treat their equity holdings like real estate purchases, focusing on the potential for profits over time rather than short-term price fluctuations, Buffett, 83, wrote in an excerpt from his annual letter published on the website of Fortune magazine today.

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