International Business Machines Corp. (IBM), JPMorgan Chase & Co. (JPM): The Buy & Hold Test, How Buffett Wins

So we’re tied at 1-1.

Energy

Finally, a quick look at a sector commonly described as recession-proof. Exxon Mobil Corporation (NYSE:XOM), viewed as the energy sector leader, didn’t show much decline during the worst part of the recession. Only falling slightly to $60.00 per share in mid-2008, Exxon now trades well over that level.

Seemingly unshaken by the recession, Exxon actually increased its dividend in 2008 and continues to focus on growth by rapidly investing in the Gulf of Mexico and surrounding areas. Impressively, holding Exxon Mobil Corporation (NYSE:XOM), as well as other major players in the industry, wouldn’t have lost you any money.

Score another one for buy and hold: 2-1.

The conclusion?

We can all learn from Buffett’s ways. His commitment to partnering with companies through thick and thin, rather than trying to make a fast buck, serves him (and his investors) well. The lesson is this: maintain perspective in times of market pull-backs, and we can count on history to make us a winner. Clearly, buy and hold works; thanks Warren.

This article was written by Ian Finney and Edited by Chris Marasco. Chris Marasco is the head editor of ADifferentAngle. Neither has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Goldman Sachs. The Motley Fool owns shares of Bank of America, International Business Machines (NYSE:IBM)., and JPMorgan Chase & Co (NYSE:JPM).

The article The Buy & Hold Test: How Buffett Wins originally appeared on Fool.com and is written by Marie Palumbo.

Marie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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