[Weekly Wins] Warren Buffett’s advice for a volatile market: patience pays

Moomoo Learn wrote a column · Mar 10, 2022 03:15

[Weekly Wins] Warren Buffett’s advice for a volatile market: patience pays

Global stock markets rallied on Wednesday as Ukraine and Russia looked to resume diplomatic talk.

If the talks between Ukraine and Russia lead to a de-escalation of the war, investors will refocus their attention on "the prices of oil and other commodities, and whether central banks will have to change course."

$S&P 500 Index(.SPX.US)$ rose 2.6% for its biggest daily gain in 12 years.

Investors seemed relieved and stopped selling blindly. But while uncertainty persists, volatility could return.

What should we do in this situation?

Investors should stay calm and stay away from emotionally frequent trading to avoid greater losses.

"If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes."
Here is an answer from Buffett.

【A “long-term mindset”】

Buffett believes that success for the average investor is achieved through long-term passive investing across an index instead of trying to achieve quick wins through active management decisions.

· Never try to predict the market
· Investing in the "Deep Value"
· Approach investment with a long-term mindset
· Have something to compare against
· Pay attention to the compound interest

Stick to the basics of investing and go with rational decision-making.

【Weekly Wins】