We had back-to-back conversations recently with clients who are big fans of Warren Buffett. Oddly, they seem to dislike the application of his principles to their portfolios. It is a good illustration of why Buffett’s success has endured, in our opinion. His ideas are easy to understand, hard to do.
Consider these quotations, investor first, then Buffett in bold.
“This stock has done nothing but go down since I bought it. I want to sell.”
I love it when stocks I like go down, then I can buy more at a better price.
“That company is in the news all the time with problems. I don’t think we should buy it.”
The troubles everyone knows about are already in the stock price.
“Everyone I know is afraid of this market, so I’m thinking of getting out.”
Be greedy when others are fearful.
“This stock is doing great, it’s gone up a lot since we bought it.”
Watch the company, not the stock.
These conversations are noteworthy because they are rare. The tagline on our digital archives, ‘for the best clients in the whole world,’ reflects our high esteem for you.
Clients, if you would like to talk to us about this or anything else, please email us or call.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.