Charlie Monger’s immortal advice to move in flying markets: “Be afraid when others are greedy, and they are greedy when others are afraid.”
Charlie MongerThe late Vice President of Hathaway, once offered some words of wisdom to investors who deal with market turmoil.
What happenedMonger, who was closely cooperating Warren Buffett In Berkchire Hathaway, he stressed the need for long -term investors to fluctuate the weather market. He said that if the investors are unable to withstand the large market drops, they will not be ordinary contributors.
Monger acquired his personal experience during the 2009 financial collapse, when the Hathaway Berkshire shares decreased by more than 50 %. Despite this setback, he kept his belief in the company and continued to invest in its stock market.
“I think in the nature of the long -term contribution that the natural fluctuations in the markets mean that the long -term holder has the value quoted to his shares, for example, 50 %”, “Munger He said BBC in an interview.
He added: “If you are not ready to keep your chin during the accidental track, you are not appropriate to be a common contributor, and you deserve the medium result that you will get compared to people who can be more philosophical about these market fluctuations.”
Also read: Charlie Monger’s four life lessons: “You consume less than you accumulate, and invest with wisely, continuous, and support for discipline.”
Munger and Buffett adhered to the famous Buffett logo: “Be afraid when others are greedy, and they are greedy when others are afraid.”
This strategy led them to obtain shares of less than their value constantly, and the confidence in the final success of American companies.
Moreover, Munger advised investors to exploit opportunities to buy assets with significant discounts during the main declines in the market, rather than adhering to better conditions.
Why do it matter: Munger’s advice comes at a time when market fluctuations are a great concern for many investors. His words are a reminder that patience and long -term vision are the key to moving in troubled markets.
Its strategy has proven to benefit from the market decline by buying value -value shares its success in the past, and it may serve as a useful evidence for investors in the current climate.
He also eventually believes in American companies a positive view of investors about the future of the American economy.
Read the following:
The three investment lessons for Charlie Munger: “Buying great companies at fair prices, large money is not buying or selling in waiting, good companies are ethical companies.”
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