Long-term investor: Dominic Milotte

Dominic Milotte believes investment success is all about owning, not trading. The Montrealer subscribes to the investment philosophy of Warren Buffett, and not only does he follow the famous investor’s patient value approach, but Buffett’s Berkshire Hathaway is a key holding in his portfolio.

Milotte began investing nine years ago as an active trader, but after a lot of reading—including Benjamin Graham’s The Intelligent Investor—and market experience, he came to appreciate the benefits of the long-term value approach. Milotte focuses on the company’s business and ability to pay a dividend, as opposed to making buy and sell decisions based on short-term price movements.

“My philosophy is to hold a stock as long as it still has fundamental attractiveness,” says Milotte, a 39-year-old federal civil servant. He limits his holdings to 10 to 12 stocks. “I have held some of my stocks for a long time, but I’ve sold some after just three years because I realized I misjudged the company, or the fundamentals had changed and I lost faith in its future.”

He’s learned to ride out market storms and remain calm and now regards himself as a “grown-up” investor. “The biggest obstacle as a buy-and-hold investor is psychological. Thinking long-term goes against everything we see and hear in today’s investment world, especially since the 2008 crisis.”

Enjoyed reading this profile? Meet long-term investors Gurchuran Rai and James Ford, two other investors profiled in our “Stocks that pay you back” series.