Long-Term Holds

The “buy and never sell” philosophy in investing — holding a position through the full compounding curve rather than marking up and selling.

Kyle threaded the Yale SOM paper On the Nature of Long-Term Holds in 2020, anchoring on three ideas: (1) the core of Compounding is “have a system that works well enough to let you stay in the game”; (2) the key behind investors like Buffett and Marks isn’t insight but TRUST — “get your investors to trust you long enough to stay in the game” (Morgan Housel via David Perell); (3) wealth is most often created by owning real estate and owning a business. The thread’s implied critique of private equity: “20+ years of PE paying Peter to markup Paul” — a model that converts long-term assets into a trading business.

Where this appears

• The Idea Of Buy And… (tweet) — Kyle’s 2020 thread on the Yale SOM paper, the Compounding argument, and why trust is the real moat in long-term investing.