The Buffett approach is to buy great companies and hold, theoretically, forever as they compound.
But as a small investor, does that make sense? Especially in retirement accounts where you don't pay taxes for selling.
For example, I am up about 40% on Salesforce, a great company I could hold forever. But it will transition to a slow-grower due to its size.
Would it make more sense to reallocate to faster growing companies or companies that are grossly undervalued?
Is the compounding effect of buy-and-hold worth it when you're not managing billions.
Obviously it is if a company isn't huge and still has huge runway to grow. But that's not the case with Fortune 500 companies.