Warren Buffett’s advice for surviving a bear market and falling stocks

  • We may be entering a bear market soon, but now is not the time to panic if you are an investor.
  • As Warren Buffett wrote in his 2016 letter to shareholders, investors should do two things when stocks fall: stay in the market and buy cheaply.
  • President Donald Trump also said that now is “a great opportunity to buy “stocks.

Stocks may be on the verge of a bear market, but now is not the time to panic.

While the Dow and S&P 500 are both on track for the worst losses in a decade, as Business Insider’s Callum Burroughs reported, it’s important to remember Warren Buffett’s oft-repeated advice: “Be afraid when others are greedy and greedy only when others are afraid.”

As MoneyTalksNews reported, Buffett, billionaire investor and founder of Berkshire Hathaway, reiterated some of his top tips for maintaining wealth during a bear market in his 2016 letter to shareholders: Stay in the market and buy well. price.

Buffett wrote:

“During such scary times, you should never forget two things: First, widespread fear is your friend as an investor, as it is used to make profitable purchases. Second, personal fear is your enemy. It will also be your friend. Unjustified. Investors who avoid unnecessary cost ups and downs and simply sit for an extended period of time with a collection of large, conservatively funded US companies will almost certainly do well. “

In other words, don’t fall victim to widespread panic and start selling stocks, because the sources of wealth investments are long term.

Read more: A young retiree who surveyed 100 millionaires found that many of them had built their fortunes using a simple investing strategy championed by Warren Buffett

“US companies – and therefore a basket of stocks – will almost certainly be worth a lot more in the years to come. Innovation, productivity gains, entrepreneurship and an abundance of capital will ensure this … Many companies, of course, fall behind, and some will fail, “he wrote.

More importantly, it’s impossible to predict when economic crises will occur, Buffett said, but they are inevitable.

President Donald Trump seems to share the same sentiment as Buffett. As the US stock market suffered record losses until Christmas, Trump on Christmas Eve told reporters that right now it is “a tremendous opportunity to buy “stocks, according to a Reuters report.

“We have companies, the biggest in the world, and they are doing very well. They have record numbers,” Trump said.

Staying in the market for the long term is a proven way to build and maintain wealth.

John, a self-made millionaire who runs the personal finance blog ESI Silver, interviewed 100 millionaires over the past few years and have found that many of them use Buffett’s signature investment strategy: they invest in low cost index funds and they tend not to give in to the temptation to change their investments frequently.


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