While value investors wait for the dust to settle we might want to ponder the thoughts of some experienced investors on market ups and downs. By dust to settle I mean understanding the new economic/business environment we are in. There are new rules on government help, disturbed demand patterns, interrupted supply chains, psychological trauma.
No one knows where all this is going to end up, but in the new world there will be a new set of strong players and weak players in markets, there will be companies with intrinsic value significantly higher than market price, and there will be companies with dangerously weak market positions and balance sheets. But until the macroeconomic and government counteraction fog has cleared we'll have great difficulty knowing which companies are bargains.
We have usually made our best purchases when apprehensions about some macro event were at a peak. Fear is the foe of the faddist, but the friend of the fundamentalist.
Warren Buffett (B.H. 1994)
One of the ablest investment men I have ever known told me many years ago that in the stock market a good nervous system is even more important than a good head
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Prof. Glen Arnold
I'm a full-time investor running my portfolio from peaceful Leicestershire countryside. I also happen to be UK´s best selling investment book author and a Financial Times Best selling author.
Originally, I wrote all my ideas out in full on this website. Now that ADVFN publish them they are entitled to display the full version for six months – you can see them here. Thus can I only post the first few paragraphs here for anything younger than six months.
I write 2 to 3 newsletters per week - investing is about making the right decisions, not many decisions.