Conventional wisdom suggests investors should aim to buy low and sell high, ideally cashing out at a stock’s peak. Warren Buffett, however, takes a different view.
Speaking at the 1998 Berkshire Hathaway Annual Meeting, Buffett said he has no concern if a stock he sold continues to rise. In fact, he sees it as a positive sign.
“I would worry, frankly, if I sold a bunch of things right at the top, because that would indicate that, in effect, I was practicing the bigger fool-type approach to investing, and I don’t think that can be practiced successfully over time,” Buffett explained.
Instead, he believes the best investors often sell stocks that later climb higher. To him, this reflects a strategy rooted in buying strong businesses rather than chasing market timing.
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© 2026 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.