“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years.”
– Warren Buffet
Warren Buffet is pretty consistent in his philosophies, similarly quoted saying, “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes”. Now, many of us are not players in the stock market, that is just fine, the quote can still apply to you.
Look for quality stock, whether it be financial stock, or human stock (friends). If you aren’t willing to hold onto it/them for at least a few years, then they may not be worth your time invested in the first place.
Let’s all look for some quality ‘stock’!
Just as important as the need for gratefulness when money is made, is the need to not chase it. Going out there expressly for the purpose of making money is the surest way to chase and never actually catch.
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Related Reading: Buffett is just one name to learn from — explore the full list of people to follow in finance.
What Warren Buffett’s Quote Teaches About Long-Term Investing
When Warren Buffett says he buys “on the assumption that they could close the market the next day and not reopen it for five years,” he is making the case for patient, buy-and-hold investing. The point is not to predict short-term price moves but to own quality businesses you would be comfortable holding through years of closed markets. If you would not want to own a company for a decade, Buffett argues, you should not own it for ten minutes.
Buy Quality, Then Be Patient
The quote pairs two ideas: focus on quality, and resist the urge to trade. Quality means durable businesses with real earnings, not hot tips. Patience means giving compounding the years it needs to work. A simple way most people apply this is by owning broadly diversified, low-cost funds such as the best index funds for retirement and then leaving them alone. If you are still learning, start with the fundamentals of how to get good investment returns as a beginner.
Why Not Chasing Returns Wins
Buffett’s caution is really about temperament. Investors who chase performance tend to buy high and sell low, while those who hold quality assets capture the market’s long-run growth. The same discipline shows up in another Warren Buffett savings tip for retirees, and it can be channeled into income through dividend investing for a sustainable income stream. For unbiased guidance before you invest, review the basics at Investor.gov from the SEC, and read more on the buy-and-hold strategy on Investopedia.
Key Takeaways
- Buffett’s quote is a case for buy-and-hold investing: own businesses you would keep even if markets closed for years.
- Prioritize quality over hype, then give compounding time to work.
- Chasing short-term gains usually backfires; patience and temperament drive long-run results.
- Low-cost index funds make this discipline easy for everyday investors to follow.
Frequently Asked Questions
What does Warren Buffett’s quote about closing the market mean?
It means you should only buy investments you would be happy to hold for years without the option to sell. By imagining the market closed for five years, you focus on the underlying business quality rather than short-term price swings, which is the heart of long-term investing.
Is buy-and-hold still a good strategy?
For most long-term investors, holding quality, diversified assets through market cycles has historically outperformed frequent trading. It lowers costs and taxes and removes the temptation to time the market. It is not risk-free, but it aligns with how compounding actually builds wealth.
How do I find “quality” investments to hold?
Look for durable businesses or broad, low-cost index funds rather than speculative bets. Many investors also learn from experienced voices; see the top people to follow in finance for credible perspectives on evaluating quality.
Related Reading: Wealth is what you keep, not just what you earn — see the Robert Kiyosaki money quote and its lessons.
