How do you handle market drops, like we witnessed earlier this year? What's your response to fear in the market, or in a company...when investors and shareholders are running for the exits?
I recently gave a speech in front of several groups on this answer, using the content in the video below. I recorded this video shortly after giving my presentations.
As Margin of Safety Investors, we do our best to take advantage of short-term fear in the markets. We try to take a step back, remain unemotional, and focus on the long-term perspective. When we can do this, we are oftentimes able to get fantastic bargains, even on world-class stocks such as Apple, Southwest Airlines, or even American Express. Take a look at this video to see how one of the all-time great investors, the Contrarian, handled extreme fear back in the 1960's, amid the "Salad Oil Scandal", by embracing the short-term fear and focusing on what truly mattered--making he and his partners millions (and later billions) as a result.
March 21, 2018