the Contrary Investor

August 16, 2007

Step away from the ledge

Filed under: General — contraryinvestor @ 1:25 pm

low-prices.jpg

“If you expect to be a net saver during the next 5 years, should you hope for a higher or lower stock market during that period?”Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall.”This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.”

Warren Edward Buffett (born August 30, 1930) is an American investor and the CEO of Berkshire Hathaway.
– 1997 Chairman’s Letter to Shareholders

Take a step back, breathe, look for bargains. Repeat as necessary.

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