Buffett: It Really doesn’t make any Difference
Amid all of the sensationalism in the media (mostly NBC) over what Warren Buffett said this morning, the one line that they should be using to calm the masses is the one I haven’t heard a snippet of yet:
“I would never have a feeling that the Dow is going to go to 2,000 or 12,000 or 4,300 or 20,200. I don’t – I know over time it will go higher but if you buy a cross section of good equities, generally well capitalized companies, you’ll make money over 10 or 20 years. I haven’t the faintest idea where you’ll be in 10 months, but it really doesn’t make any difference.”
The media makes it seem as if everyone is a day trader dealing with individual stocks…
Warren comes in and essentially asks people to wait a decade and then get back to him on how much money they think that they ‘lost’.
Seriously, unless you’re in retirement or darn close to it, what’s going on right now doesn’t mean a thing. Peaks and valleys. Peaks and valleys.
Just chill, baby…