“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” – Sun Tzu
SUMMARY
INTRODUCTION
Every investor is a tactician, whether they actively try or not. Warren Buffett and his lieutenants at Berkshire Hathaway pursue a well-known strategy of buying high-quality companies trading at moderate valuations for the long-term (“quality merchandise at a discount”), but still, tactically adapt their investment portfolio to the changing environment. They did this most recently, for instance, by selling their stakes in US airlines like Delta and United when their outlook became less attractive in the post-COVID-19 world.