Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982... http://www.amazon.com/gp/product/1939... In this lesson, students learned the importance of buying an asset that they can hold for ever. Buy purchasing a company that has long term prospects, the owner (or stock holder) doesn't have to continually pay capital gains tax. When comparing the capital gains tax of a person that trades in the short term, it becomes very obvious that it's not advantageous. By purchasing a company with long term prospects, you're not only minimizing your capital gains tax, but you also enjoy the sustained earnings through time.