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This is about the whole market, not individual stocks. This is Buffett’s point. When the market loses $1T in a day, it will definitely come back if you have a
by prepend 2y ago
This is about the whole market, not individual stocks.
This is Buffett’s point. When the market loses $1T in a day, it will definitely come back if you have a long term horizon.
Just like if you bought nasdaq after the 2000 crash.
- coffeebeqn 2y agoYou’re just describing timing the market - which is not something Buffet would recommend to the active passive investor
- cm2187 2y agoRight, but even for the NASDAQ which took a real bath yesterday, it only went back to where it was a month ago. So it's not really a historical entry point opportunity. Maybe it's the start of a bear market. But if it's not, this sort of market corrections is not something a buy and hold investor should wait in cash to try to time. You typically lose more in market opportunity by waiting for a big selloff than going in early, taking the hit and coming back.
- prepend 2y agoBuffett wasn’t recommending market timing, he was just recommending feeling good about buying your stocks when they are lower in price.