Many people don’t invest in the stock market because they think they are not smart enough.
“What if the market crashes? What if I invest in the wrong place?”, they think.
Let us see what we can learn from the two most celebrated investors of our time : Warren Buffet and Charlie Munger.
In a recent interview, Munger told the reporters:
“We have invested in about 400 to 500 companies over the course of our career. And we have generated most of our wealth from just 10 of them.
If you remove those few companies, the long term track record of Berkshire is pretty average”
That means a large part of their investments were probably a bad choice.
Some were generating a pretty average ROI. And only a few made them billionaires.
So if you are afraid of investing in the wrong place, that was the first takeaway: Build a diversified portfolio.
When you have a pretty diversified portfolio, some of your investments will definitely underperform and some will generate so average results that it will barely surpass inflation.
But one or two of your investments will give you happy returns… and these one or two investments are enough to make you filthy rich.
The next thing about Buffet is: He has survived 23 recessions in his career.
In the time of a recession, he doesn’t sell his stocks by giving into fear.
Instead, he starts buying shares or good companies at half prices when the market is crashing down.
As usual, the market comes back up… and he doubles his investments in just a year or two.
So if you are afraid of market crashes, just know that market crashes happen. And inevitably, the market will always recover after a crash.
Instead of being afraid of a crash, welcome it with an open heart.
It is in the times of a crash when fortunes are made.
So we are looking for 7 business owners this month to help them:
✅ Add an extra $10K-$30K in their revenue
✅ Build their personal wealth so they can be financially free
✅ Implement productivity hacks so they can get more done by doing less… and spend more time doing what they love
If you think this is something you would be interested in, I would love to have a chat with you and see how I can help.
Book a time HERE.
