TSX:REI.UN - Post by User
Comment by
hroark7on Dec 27, 2020 1:09am
146 Views
Post# 32184617
RE:Ignorant investors never learn
RE:Ignorant investors never learnSirCharlesV wrote: Here are a few reasons why many investors fail at investing:
1) They believe present conditions will persist indefinitely into the future. This year was particularly bleak, so many investors falsely assume that 2021 will bring more of the same doom and gloom. The reality is that we're in the backend of this pandemic and once vaccines are widely distributed globally the economic conditions will improve. Retail and office reits will recover. REI will be at $24+ by this time next year.
Awhile back, someone asked Buffett and Munger how they what the difference is between catching a falling knife and buying a bargain. They said the question to ask yourself is, does the situation represent a temporary situation or a permanent impairment of capital. This was during the American Express Salad Oil crisis.
The virus is exactly as you said, a temporary situation, not a permanent impairment of capital.