Listen to Buffett talk about investing
Buffett talks about the plan to deal with the slump
Source: Tencent US stocks
Niuniu knocks on the blackboard:
Recently, long-term interest rates have soared, causing great turmoil in the stock market and making it difficult for many market participants to calm down.
Perhaps you should turn to the voice of Warren Buffett, the "god of shares", because he has many interesting views and ideas about the crash.
When panic spreads, the market is likely to crash. For example, this was the case a year ago in March 2020. Shortly after the World Health Organization declared the novel coronavirus epidemic a major global infectious disease, blockades were taken in various parts of the United States, a large number of enterprises were temporarily closed, and the US economy suddenly shut down. As a result, US stocks plummeted on the spot.
However, the decline did not last long. After bottoming out in late March, the market turned upside down, a tone that lasted for the rest of the year. Finally, by the end of 2020, the three mainstream indicators of US stocks were seen rising across the board. The Nasdaq closed up 43.7%, while the S & P 500 and Dow closed up 15.6% and 6.6%, respectively.
Now, nearly a year after the collapse in the epidemic a year ago, the warning of a crash in the US stock market is still remembered from time to time, especially recently, when long-term interest rates soared, causing a lot of turmoil in the stock market. it also makes it difficult for many market participants to calm down. Perhaps you should turn to the voice of Warren Buffett, the "god of stocks", because he has many interesting ideas and ideas about the crash.
Psychological preparation
Many people regard Buffett as the greatest investor in history because he seems to have the magic to turn a market crash into an opportunity to make a handsome profit. Buffett firmly believes that in the contemporary investment world, if you want to build wealth, in the long run, only stocks are the best choice. He pointed out that the ups and downs of the market are always inevitable, so investors must be prepared before entering the market, so that when something happens, people will not easily fall into panic.
Reject noise
In fact, many of Buffett's best decisions were born during the market downturn. In the wake of the financial crisis in 2008, Berkshire Hathaway seized the opportunity to buy shares in Goldman Sachs Group, a world-class investment bank that desperately needed capital. Buffett once said that one of the biggest mistakes investors can make is to pay too much attention to commentators, political shows and market rumors.
If Buffett is also busy looking for various market forecasts, then he will lose the focus of his observation and thinking, and then miss the rare buying opportunity. By 2011, Berkshire had made a profit of $3.7 billion from the Goldman Sachs Group deal, of which 34%, or $1.27 billion, came from dividends. In 2009, Buffett said: "those who invest only when critics are optimistic will eventually pay a high price for this meaningless sense of peace of mind." "
Do not speculate
Buffett warned investors: "it seems that the easiest moment is precisely the most dangerous time for speculation." "some people are lucky enough to taste a little bit at the beginning of speculation, but in the long run, almost no one can be the final winner. It is the right way for the world to invest wisely in order to reduce the risk of the market. Buffett's advice is never to invest in a company you don't know. There is only one really legitimate reason to buy stocks, that is, you really want to own the business.
Focus on the long term
In fact, Buffett prefers long-term investments to short-term operations most of the time. He once said: "our ideal holding cycle is forever." If you invest in the right company, you have managed to minimize risk and create long-term wealth. "
Edit / isaac