Buffett Says You "Really Shouldn't Own Stocks" Unless You're Prepared to See Them Drop 50%. Should This Deter You From Investing?
There's no denying that when Warren Buffett speaks, investors tend to listen. That's the attention you receive when you've built a trillion-dollar business -- Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) -- and had decades of sustained success.That said, not all of Buffett's words leave investors beaming with encouragement. Some are a bit more harsh, though much of what he says is for the better. One such piece of advice from Buffett is that people shouldn't own stocks if they're not prepared for them to drop 50%.Hearing that can make some wonder why anybody would invest if there was a chance they'd lose half of their money. However, Buffett's words are meant to mentally prepare investors for the irrational ways of the stock market, not deter them from investing.Continue reading
There's no denying that when Warren Buffett speaks, investors tend to listen. That's the attention you receive when you've built a trillion-dollar business -- Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) -- and had decades of sustained success.
That said, not all of Buffett's words leave investors beaming with encouragement. Some are a bit more harsh, though much of what he says is for the better. One such piece of advice from Buffett is that people shouldn't own stocks if they're not prepared for them to drop 50%.
Hearing that can make some wonder why anybody would invest if there was a chance they'd lose half of their money. However, Buffett's words are meant to mentally prepare investors for the irrational ways of the stock market, not deter them from investing.
