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Buffett calmly face four plunges in his life

2023/2/24 16:55:07  Classification:   Participation: 5  

rebatemeaninginforex has encountered four stock rebateinforextrading crashes best forex rebate h rebatesinforex life, including three S&P500 index fell by more than half Buffetts lessons can be summarized in three words: to calm the first, January 1973 to October 1974 plunged 50% January 11, 1973, the S&P500 index highest 121 points October 4, 1974, the S&P500 Index lowest 60 points stock market crash, like a fire, everyone wants to flee quickly, have no cost, low price dumping Warren Buffett but very calm, from the calm h cashback forex, bold buy he quit the stock market as early as September 1969, and then has been holding the cash, waiting for the overvaluation of the stock market crash even he himself did not expect. Although a year later on May 26, 1970, the stock market fell to a low of 68 points, but then quickly rebounded and rose for more than two years, January 11, 1973, the S & P500 Index highest 121 points before it began to fall until October 4, 1974, the S & P500 Index lowest 60 points Warren Buffett waiting for the plunge, and so on is 5 years waiting for so long. Finally came the time to strike Warren Buffett said in an interview with a reporter from Forbes: I feel like a very lustful young man came to the daughter of the time to invest this time Warren Buffett faced with the plunge is the revelation: do not underestimate the madness of the market, high valuations can last a very long time, waiting for the market to return to sanity will not be a smooth process, during which to be calm and patient, because it may have to wait on A few years Second, August 1987 to October 1987 plunged 36% This time the stock market fell fast, the rebound is also fast, the result Warren Buffett can only regret that there is no time to let the bullets fly in the face of the plunge hurriedly came and went investment opportunities, Warren Buffett is still very calm, because he believes that the next opportunity will come, as long as the patient wait in the 1987 annual letter to shareholders, Warren Buffett Looking back at the crash: For Berkshire, there really were no investment opportunities found in the stock market over the past few years In October 1987, a few stocks did fall to prices that interested us, but they rallied sharply before they could be bought in quantities that would have an impact on the portfolio By the end of 1987, we had no other holdings except as permanent holdings with short-term arbitrage However, you can rest assured that Mr. Market will certainly provide investment opportunities in the future, and when the opportunity arises, we are very willing and able to take advantage of the opportunity This time, Warren Buffett was inspired by the fact that sometimes plunges come and go in a hurry, so that you can not seize the bottom of the good opportunity, the same calm, do not try to seize every opportunity The second year after the crash and even investment behavior out of control opportunity came, Warren Buffett began to buy a large number of Coca-Cola, to 1989, within two years to buy Coca-Cola 1 billion U.S. dollars, in 1994 to continue to increase the total investment reached 1.3 billion U.S. dollars at the end of 1997 Warren Buffett held Coca-Cola stock market value rose to 13.3 billion U.S. dollars, 10 years earned 10 times the third time, in 2000 March to October 2002 plunged 50% Warren Buffett has long predicted that technology network stocks to promote this wave of stock market rally after the bubble is bound to burst despite the stock market fell by half in three years, Buffett is not eager to plunge, because he wants to buy a lot of stocks are not yet cheap 2002 annual letter to shareholders, after the plunge, Buffett is still very calm: in terms of stock investment, we still do not have any action Charlie I am increasingly satisfied with Berkshires current major holdings because the earnings of these companies are growing, while at the same time the market is valuing them further down, but there is no intention to increase our holdings in these stocks yet. The unpleasant fact that very few stocks are even marginally interesting to us is indicative of the stock markets wild overvaluation of stocks during the Great Bubble. But unless the probability of getting at least a 10% pre-tax return (6.5%-7% after corporate income tax) is found to be very high, we would rather sit on the sidelines and watch. Buy PetroChina in 2005 to buy a lot, the size of the funds invested in the stock market jumped from 9 billion at the end of 2002 to 16 billion Warren Buffetts third face plunge is the revelation that some stocks may not be cheap after the plunge, the bottom should also be calm because even if the stock market plunged by half, does not mean that the stocks you want to buy also plunged by half, and some stocks may not be cheap even if they plunge by half Fourth. October 2007 to March 2009 plunged 58% in the market fear atmosphere at the time of the greatest, October 17, 2008, Warren Buffett published an article in the New York Times, publicly announced: I am buying U.S. stocks in the article he again reiterated his investment motto: fear when others are greedy, greedy when others are afraid he said in his 2009 annual letter to shareholders to be greedy when the plunge In his 2009 letter to shareholders, he said to be greedy when there is a plunge, to catch it in a vat: it is very rare to see an opportunity of this magnitude, and when it comes to gold, you should catch it in a vat, not with a tiny ring. The key to Warren Buffetts ability to invest so calmly and massively in the midst of the financial crisis was his strong belief in value investing: the past two years have been the best time to invest for real investors, and the climate of fear has been a good friend to those who buy only when they have an optimistic analysis based on market analysts The investor who buys only when the market analysts make optimistic comments, for meaningless guarantees to pay a grossly excessive price in the end in the investment plays a decisive role is the difference between the price you pay and the earnings of the company in the next ten or twenty years, whether you buy the whole, or only a small part of the company on the stock market Buffetts fourth face plunge is the revelation: the harder the plunge the harder the plunge Buffett said, investment The most important thing is to be rational but the most difficult thing in stock investing is to stay rational, especially in the midst of plunges and crashes   

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