Guide To Investing In Stock Market (Part X)

How To Survive In A Bear Market – A Warren Buffett Style

The market has corrected very sharply in the past few days, so I thought it would be useful to consider few ways to survive in a bear market and of course following the Warren Buffett style.

I’ve selected a few quotes by Warren Buffett which makes sense and if you follow that you can survive any bear market.

“If a business does well, the stock eventually follows.”

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

“Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful.”

“I always knew I was going to be rich. I don’t think I ever doubted it for a minute.”

“Price is what you pay. Value is what you get.”

“For some reason, people take their cues from price action rather than from values. What doesn’t work is when you start doing things that you don’t understand or because they worked last week for somebody else. The dumbest reason in the world to buy a stock is because it’s going up.”

“Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.”

“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”

“You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right—and that’s the only thing that makes you right. And if your facts and reasoning are right, you don’t have to worry about anybody else.”

“Our favorite holding period is forever.”

“Risk comes from not knowing what you’re doing.”

“If you don’t feel comfortable owning something for 10 years, then don’t own it for 10 minutes.”

“A public-opinion poll is no substitute for thought.”

“We will only do with your money what we would do with our own.”

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

When asked how he became so successful in investing, Buffett answered: “we read hundreds and hundreds of annual reports every year.”

“I never buy anything unless I can fill out on a piece of paper my reasons. I may be wrong, but I would know the answer to that. “I’m paying $32 billion today for the Coca Cola Company because…” If you can’t answer that question, you shouldn’t buy it. If you can answer that question, and you do it a few times, you’ll make a lot of money.”

“You ought to be able to explain why you’re taking the job you’re taking, why you’re making the investment you’re making, or whatever it may be. And if it can’t stand applying pencil to paper, you’d better think it through some more. And if you can’t write an intelligent answer to those questions, don’t do it.”

“I really like my life. I’ve arranged my life so that I can do what I want.”

“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

“The Stock Market is designed to transfer money from the Active to the Patient.”

“Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it”

“Wide diversification is only required when investors do not understand what they are doing”

Source(s): Wikiquote

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