SAN FRANCISCO . Warren Buffett's market predictions do not usually
deliver . However , in his letter to shareholders Buffett Partnership Ltd in
early July 1962 , the legendary investor to give advice through the stock market
broke down . Advice was fitted with the present conditions.
" I think you can be sure that within 10 years from now there will be some years when the when the market goes up 20 % or 25 % , minus a few years at the same rate , and the majority will be in them, " Buffett wrote .
Interestingly, Buffett said , " I do not know what will urutannnya . I think it's not too important for long-term investor . "
Half a century later , Buffett's advice to ignore the market turmoil is still relevant . The problem is , it is difficult for investors to wait for goods 10 days , let alone waiting for 10 years .
" I think you can be sure that within 10 years from now there will be some years when the when the market goes up 20 % or 25 % , minus a few years at the same rate , and the majority will be in them, " Buffett wrote .
Interestingly, Buffett said , " I do not know what will urutannnya . I think it's not too important for long-term investor . "
Half a century later , Buffett's advice to ignore the market turmoil is still relevant . The problem is , it is difficult for investors to wait for goods 10 days , let alone waiting for 10 years .
Investors in the present course is justified to worry about losing their funding . Risk aversion alias to avoid the risk of common in a bearish market . But remember , the fear of investors that will feed a voracious market . A greedy market feeds on fear . Just like now , investors in 1962 deserve to be afraid . Cuban missile crisis did not bring duni to nuclear war until October , but the Cold War between the U.S. and the Soviet Union heated up . The Dow Jones fell 23 % in the first half of it , so immediately remove a 22 % achieved the previous year . Through all this , Buffett remains level-headed . He stressed , stock buyers need a long lens . " The results of six months or even one year not to be taken too seriously , " he wrote . He added that investment performance should be assessed over a period of time . In that period , the market can go up and down . The 50-year -old letter seems to be useful for investors who are now confused face of global economic conditions chaotic .
" All the big investors do Buffet do . You have to do a lot of
homework and wait at the right price . Anyone who set up his own fund
halitusebelum must learn to invest, "said Jeff Auxier , who bought Berkshire
stock in the Auxier Focus Fund.
Buffet is consistent with this principle in subsequent years until now . He always insisted that keeping the capital in a down market , do not rush to catch a rising market , and focus on results and long-term challenge .
However , many investors who fail to grasp the meaning of long-term investing Buffet version . Men 's birthday to -82 on August 30 it was never suggested that investors buy shares and wait for passive ride . He suggested : buy at low prices , hold , and continue to monitor.
Buffet is consistent with this principle in subsequent years until now . He always insisted that keeping the capital in a down market , do not rush to catch a rising market , and focus on results and long-term challenge .
However , many investors who fail to grasp the meaning of long-term investing Buffet version . Men 's birthday to -82 on August 30 it was never suggested that investors buy shares and wait for passive ride . He suggested : buy at low prices , hold , and continue to monitor.
Magic word of Buffet
Buffet started investing the limited partnership in May 1956 . Pupils seasoned investor Benjamin Graham 's side started with a capital investment of U.S. $ 105,000 from family and friends .
In early 1963, Buffett was managing U.S. $ 9.4 million , including U.S. $ 1.4 million of his own pocket . Buffett's success is not difficult to guess . For five years , the Dow average rose 8.3 % per year . Buffett Partnership managed to give its shareholders 21 % return per year .
In 1962 alone Buffet did not make a profit . Dow when it was minus 10.8 % outside of the dividend . But a year later , Buffett could reap return 11.9 % .
In his letter of 1963, Buffett once again repeated the mantra to achieve such performance .
" Our task is to accumulate annual profit on Dow 's performance , without having to worry too much if it results in plus or minus , " he wrote
Buffet started investing the limited partnership in May 1956 . Pupils seasoned investor Benjamin Graham 's side started with a capital investment of U.S. $ 105,000 from family and friends .
In early 1963, Buffett was managing U.S. $ 9.4 million , including U.S. $ 1.4 million of his own pocket . Buffett's success is not difficult to guess . For five years , the Dow average rose 8.3 % per year . Buffett Partnership managed to give its shareholders 21 % return per year .
In 1962 alone Buffet did not make a profit . Dow when it was minus 10.8 % outside of the dividend . But a year later , Buffett could reap return 11.9 % .
In his letter of 1963, Buffett once again repeated the mantra to achieve such performance .
" Our task is to accumulate annual profit on Dow 's performance , without having to worry too much if it results in plus or minus , " he wrote
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