Warren Buffetts Advice....PatienceHere is a great read, enjoy! Certainly you’ve been watching the stock market over the past few days. It would be hard not to.
Even the most hands-off investor has likely noticed the scare headlines popping up on the evening news, counting out thousand-point drops and flashing downward-sloping charts in bright red. There’s nothing the media likes more than a disaster, after all.
The recent stock market volatility, following years of up markets, is nevertheless the most widely forecast financial reversal in recent history.
Nothing about what we’re seeing now should be surprising — or particularly dangerous to the prepared. But what about the unprepared?
For them I offer a fundamental insight, one which can escape even seasoned investors. When you see a stock market sell off, always remember there are two participants in each and every transaction — a seller and a buyer.
Remember, though, that as some investors exit the market, others enter. As Warren Buffett put it: “The stock market is a device which transfers money from the impatient to the patient.”
Consider these three data points:
- For over 100 years stocks have roughly doubled every eight years.
- A dollar invested 50 years ago in the S&P 500 SPX, -0.15% is worth well over $100 today.
- Finally, there is no five-year period where the S&P did not register a positive return.
Can you wait up to five years for the stock market to find its footing and give you the return you seek? Great, you’re an investor.
To quote Buffett again, “If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.”
Cheers and all the best, stay safe, stay strong and most of all, stay invested in GRN, you will be very happy a year or two from now:)