Are markets panicking? That depends on who you ask. A short-term trader might see the ~6% move lower as significant. On the other hand, those who invest for longer-term (such as myself) see a ~6% move down as nothing at all. From mine, panic isn’t here yet. However, there is a measure which can help us identify when markets are overly fearful. And generally – they are great buying opportunities. But we are not there yet.
Investing Lessons
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How Buffett Built a $1.1 Trillion Cash Machine
Whilst market’s fret about slowing growth (“Ready for a Growth Scare?”) – Warren Buffett sits back with a smile. His company – Berkshire Hathaway – rallied to fresh record high this week after the company reported a record high quarterly profit. Its market value is now over $1.1 Trillion. So how did Buffett build this incredible cash machine? I’ll outline three (basic) reasons… all of which you can emulate.
Buffett: “Often, Nothing looks Compelling”
Saturday Feb 22nd was circled on my calendar. It was the day Warren Buffett shared his annual shareholder letter. If you want to become a better long-term investor – it’s worthwhile reading every one of his 59 letters (from 1965). With respect to valuations he offered this: “We are impartial in our choice of equity vehicles, investing in either variety based upon where we can best deploy your (and my family’s) savings. Often, nothing looks compelling; very infrequently we find ourselves ‘knee-deep’ in opportunities.”