“The wise investor will disregard
the day-by-day fluctuations of the stock market or real estate market and base
his buying and selling on these long periods of rise and fall. Above all, and I
repeat it again and again—he must have liquid capital in time of depression to
buy the bargains and then he must sell before the next crash. It is difficult
if not impossible to do this but the conservative longtime investor who follows
the general rule of buying stocks when they are selling far below their
intrinsic value and nobody wants them, and of selling his stocks when people
are bidding frantically for them at prices far above their intrinsic value—such
an investor will pretty nearly hit the bull’s-eye.”
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Related previous post: WSJ:
The View From Inside a Depression