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 the next for longer setting.” (I stole this from Ben)

It’s straightforward to cite Buffett, it’s laborious to behave like him. And by appearing like him, I don’t imply his model of investing, I’m speaking about this primary premise that investing ought to be seen as a long-term endeavor. And that it’s best to get comfy being uncomfortable if you wish to generate income within the inventory market.

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

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

Going again to 1950, shares are no 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 embody 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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