Value Investing Myths

Myth: Stay away from falling markets and high volatility

Falling markets are an investor's friend because he can buy good companies at a bargain. Read what Buffett says

Myth: Stay away from falling markets and high volatility

We all know the behaviour of stock prices - constantly going up and down. Falling markets are investors' worst nightmares. Yet the most successful investors in the world prefer falling markets. Busting the myth The stock market has frequently provided opportunities that would handsomely reward investors later on. Among them are the crash of technology stocks in 2000, and, more recently, the crash of 2008-2009. In all of these instances, panic was commonplace, prices were down and bargains aplenty. But did you buy in those times? Most of us would like the market to go up always. Buffett, though, prefers quite the contrary. He says, 'Practically anybody in this room is probably more likely to be a net buyer of stocks over the next ten years than they are a ne

This article was originally published on May 26, 2018.


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