Lou Simpson was one of the greatest investors of all time.
His wisdom condensed in Six Words- Buy Cheap, Hold Expensive, Sell Rarely
We try to be disciplined in the price we pay for ownership even in a demonstrably superior business. Even the world’s greatest business is not a good investment if the price is too high.
This is often the most difficult, because you’re investing in something you wouldn’t buy at current prices, but you don’t want to sell because it’s a really good business and you think it’s ahead of itself on a price basis. It might be worth holding on to it for a while.
If I’ve made one mistake in the course of managing investments it was selling really good companies too soon.