Buffett: When the Stock Market Fluctuates Wildly Keep these Investment Advice
How to deal with the volatility of the stock market? At this time, it is even more necessary to review the investment advice of “stock god” Buffett.
Mitch Tuchman, a contributor to financial website MarketWatch, said that when the stock market sells wildly, don’t panic, remember this: there is always a seller and a buyer in every trade in the market. When one investor sells shares, another must come in to take over.
Buffett once said, “The stock market is a money transfer design, moving money from impatient people to patient people.”
Unprepared people are, by definition, impatient, Tuckerman said. They overinvested in a handful of companies, betting big on companies with little verifiable track record, and relied on their daring to take over stocks sold by Wall Street’s “smart money.” Simply put, such investors are “acting over thinking”, “preferring to buy stocks over holding”, and “blindly greedy but neglecting to do their homework.”
He advises investors that when the stock market volatility intensifies, they should have a long-term and long-term view, and then they will suddenly be able to see clearly. Looking back at the ups and downs of the U.S. stock market over the past few decades, it is easy to observe a simple investment fact: no matter what wars, bubbles, credit defaults, plagues, currency devaluations, or inflation strikes, in most years, the upward trend of stock prices will be blocked. Can’t stop.
Tuckerman said, ask yourself if you can wait five years and put a long line to catch a big fish? If you can, great, you’re an investor (not a speculator); if you can’t, then “you shouldn’t be investing in the stock market at all”.
He quoted another investment motto from Buffett: “If you don’t want to hold this stock for ten years, don’t think about holding it for ten minutes.”