Now back to Buffett, who takes Lynch's strategy one step further. He has said he is "quite content to hold any security indefinitely, so long as the prospective return on equity capital of the underlying business is satisfactory, management is competent and honest, and the market does not overvalue the business."
He does look at valuation -- the price that Mr. Market is willing to pay for his stock. But he doesn't have an itchy trigger finger. Buffett "is not compelled to sell just because of short-term appreciation," writes Robert J. Hagstrom Jr. in his book, "The Warren Buffett Way." On the contrary, "he considers the Wall Street maxim You never go broke taking a profit' to be foolish advice."