Warren Buffett's Approach to Buying Stocks in a Downturn Is Similar to How He Views Shopping
As of the end of last week, the S&P 500 was down more than 5% to start the year. The market is off to a brutal start, and investors are worried that there could be more trouble ahead given that trade wars and tariffs may weigh on the results of many businesses for the foreseeable future. Plus, at a time when valuations have been elevated for a while, many stocks could be due for significant corrections.In times like these, investors may want to look to billionaire investor Warren Buffett for guidance. Over the years, he has been a source of many insightful quotes on what to do in the markets, both in good times and in bad. One of the more interesting ones compares shopping to investing.Buffett is a value investor, and so it should come as little surprise to investors that what he likes to focus on is price and valuation. He says that "whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down." Continue reading
As of the end of last week, the S&P 500 was down more than 5% to start the year. The market is off to a brutal start, and investors are worried that there could be more trouble ahead given that trade wars and tariffs may weigh on the results of many businesses for the foreseeable future. Plus, at a time when valuations have been elevated for a while, many stocks could be due for significant corrections.
In times like these, investors may want to look to billionaire investor Warren Buffett for guidance. Over the years, he has been a source of many insightful quotes on what to do in the markets, both in good times and in bad. One of the more interesting ones compares shopping to investing.
Buffett is a value investor, and so it should come as little surprise to investors that what he likes to focus on is price and valuation. He says that "whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down."
