Sunday, May 26, 2024
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Correction Territory – The Irrelevant Investor


Warren Buffett as soon as stated, “Be grasping when others are fearful. Besides when earnings are being revised decrease, breadth is unhealthy, and also you’re in a better for longer atmosphere.” (I stole this from Ben)

It’s straightforward to cite Buffett, it’s laborious to behave like him. And by performing like him, I don’t imply his fashion of investing, I’m speaking about this primary premise that investing needs to be considered as a long-term endeavor. And that you need to get snug being uncomfortable if you wish to make cash within the inventory market.

Proper now we’re in a interval of average discomfort. The S&P 500 is in a ten% correction. This occurs yearly on common.

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Whether or not or not the average discomfort turns into one thing extra painful stays to be seen. In line with Warren Pies, 60% of 10% corrections transfer on to fifteen% drawdowns.

Going again to 1950, shares are not less than 10% off their all-time excessive 36% of the time. And but, it has gained 25,000% over the identical timeframe, and that doesn’t embrace dividends! No ache, no acquire.

Josh and I are going to cowl this and far more on tonight’s What Are Your Ideas?



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