Warren Buffett, the successful investor, disclosed that he and Charlie Munger are business pickers, not stock pickers. The secret to their success is investing in companies with trustworthy management and favorable economic characteristics. This approach, known as value investing, emphasizes holding onto top-performing stocks rather than active trading based on short-term fluctuations in prices. Buffett explained this in Berkshire Hathaway’s annual shareholder letter.
Read more at CNBC