One of the world's richest men, Warren Buffett, acquired his wealth by following a very simple rule during times of market volatility: "Be fearful when others are greedy, and be greedy when others are fearful."
With mass media websites trumpeting headlines like "Oil collapse and global stampede out of stocks trample loonie" (Financial Post) and "Dow drops more than 2,000 points amid oil price war, coronavirus fears" (New York Post) it is easy to forget that the world has been in similar situations before.
During the most recent bout of heightened stock market volatility, wise investors are sticking to their long term strategies because history clearly shows that times of short-lived financial stress have never permanently prevented the world economy from advancing to new highs.
In fact, looking back over the past nine decades, investors around the world have witnessed global economic challenges no less than 85 times - and the world kept turning. Don't remember any of these events? Click the "Special Bulletin" link below to see a list of "global economic challenges" that have occurred during the past 85+ years.
How can Warren Buffett have confidence in the future? Because he has lived through more ups and downs in the investment markets than most other people alive today - and he has an unshakable faith in human ingenuity to solve complex problems.
The bottom line is that while investing isn't always easy...it is simple. Ignoring the inevitable market ups and downs that occur over the years, owning a collection of great companies (either individually or via an investment fund) can be a great way to achieve financial success as long as an investor is patient and committed to a long term financial strategy.
Call our office today to discuss how best to position your portfolio assets for the next 3-5 years and beyond.