20 tips from Warren Buffett on weathering a market downturn

Take it from a legend

“Markets go up and markets go down, it is how you react that will make the difference over the long term.”

“No one can predict with certainty what will happen in the markets in the short-term future…absolutely no one.”

However, what we do know for sure is that markets will go back up and exceed their previous highs over the long-term (5 to 10 years). We just do not know exactly when or how many years or decades it might take.

But, it is an historical fact that long-term markets go up despite short-term market drops and sell offs. As a result, market corrections and bear markets create excellent stock buying opportunities for patient and smart investors.

While psychology, emotions and sentiment work against investors in down markets and panic stock sell offs in the short-term, it is important to try to ‘think’ instead of ‘reacting on emotion’. Successful investing has been founded on sound investing principles and strategies. Poor investment strategies have resulted from reacting on emotion.

We know that markets tend to go up and to go down, but over the long-term markets increase. Understandably, when markets go down, the odds are in your favor to make successful investments over the long-term if you buy the stocks of companies with strong balance sheets whom stock price has been unfairly beaten down during market corrections and Bear markets.

Investing legend Warren Buffett has earned the nickname “The Oracle of Omaha” because of his incredible and long lasting investment success. And, Buffett has lived through a lot of different markets in his day.

Here are 20 of Warren Buffett’s best quotes for you and some things to contemplate about each one. Click through the gallery at the link below:

https://www.msn.com/en-us/money/savingandinvesting/20-tips-from-warren-buffett-on-weathering-a-market-downturn/ss-BB12hUJq#image=1

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