By Craig Erwin, Ph.D.
Although we have seen too many nasty surprises this year, some people, like Warren Buffett, see the turbulence caused by these threats as an opportunity. As a brutal war has raged, inflation has soared, the stock market has been buffeted by volatility and a sell-off, and we have been biting our nails, Warren Buffett has bought tens of billions of dollars worth of stock.
How did Warren Buffett do it? While the rest of us were traumatized by the frightening news, Warren Buffett took advantage of the sale prices on Wall Street, stocking up on bargains. He knows that the many current crises will someday pass, and then many stock prices will bounce back. People who keep their heads while everyone else panics will always have an advantage.
So, what can the rest of us, who aren’t Warren Buffett, do to benefit from lower stock prices? That’s easy. Just keep doing what you were already doing. Stick to your dollar-cost averaging plan; keep buying and investing, buying and investing, buying and investing. And if you’re not enrolled in a workplace retirement savings plan or contributing regularly to an IRA, get started ASAP. You may not get bargains as dramatic as Buffett’s, but, if you bought stocks this year, you probably got them on sale. Even though you can’t be Buffett, you can be shrewd.
Have you made any changes to your investing plans this year? If so, do you regret them? Do you expect things to be better or worse by the end of the year?
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