The most experienced person in stocks and a legendary investor, Warren Buffett, was asked the question of whether he was bullish or bearish because he always thinks if the market price of the stock will go up or down.
He answered in a subtle tone: Charlie Munger and I don’t share opinions about the current market as it will never make us productive, and by talking of the market issues, we might change our beliefs about stocks. If the business is good, we don’t think about what the market will do and start working on that business. When you know that a business is profitable, how can you give up on that for something that you don’t know?
The world may go dark, but be sure of your decision
Buffet, in the annual meeting of 1994, told that he bought his first stock in April 1942 when World war II was ongoing. He bought three shares. A lot of things happened after that like atomic weapons, inflation, presidents resigning, and all kinds of other stuff at uncertain times.
To give up doing something because of other factors that are unclear and are subject to “Might happen” mustn’t stop you from doing things. While the comments made by Warren were two decades ago, but they still stand true today amid volatile stock market and political instability.
A little advice to lift your morale up
Warren advised everyone to make a long term bet on the American economy and don’t ever think about being bullish and bearish when the market fluctuates. Cut out the noise, shut down the curtains from the market side, and look for trustworthy companies that are selling their business at low prices.
Warren’s advice is to buy shares with steadiness and over time, without taking in the factor of the macroeconomic environment as market fluctuations will always be there. Never try to time your purchase with when the market is good for business. Warren Buffett, who is now 88 years old, has always been making a bet on the US economy this whole time.
Fast and steady!
With his greater insight, steady stock, and company purchases, Berkshire Hathaway is returning 20% income annually over the past 40 years. Just take into account the savings and profit he might be getting through that annual return.
It is his advice to young entrepreneurs to stop thinking so much about stock market crashes, look for a company that is selling their stock at a low price, and it attractive, ad go through with it.