Now is not the time to make poor investment decisions. Take a step back and think long(er) term.

As of this writing, the market seems to be recovering from a blood bath. But it is far from over and it could be a long road to a full recovery.

Here are some nuggets of wisdom from Warren Buffett to help get you through the stock market winter.

• In the short run, the market is a voting machine. In the long run, it’s a weighing machine. Pay attention to how people are voting, but make decisions based on long term goals.
• Focus on the companies. All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies. Not the stock price. If it’s a good company and the stock price is down, consider it on sale. Then buy more if you can.
• What we learn from history is that people don’t learn from history. News is sensational because there are incentives for being so. Events will always be “unprecedented” in their eyes. The sky will always be falling. It sells better. But their incentives do not line up with yours as an individual investor. History shows a steady increase in the stock market’s value. Of course, there will be volatility if you zoom in. Zoom out and you’ll see a positive trend.
• Never invest in a business you cannot understand. Don’t invest because others are doing it and talking about it on social media. If they are making that much money on X investment, study it. Understand it for yourself. Ask questions. Study the successful investors in the field you don’t understand yet.

Disclaimer: This was a selfish essay, addressed to my irrational self, to ensure I don’t make any rash investment decisions during this suppressed market.

This post was created with Typeshare