Quote:
Originally posted by Monk
But the trick is buying when the 20 year cycle is at bottom. Anybody who invested in stocks in 1999 and holds them until 2019 will probably not be breaking even.
|
Good point, I guess Buffett protects himself against these swings by 1) buying over a long period of time [cost averaging] 2) buying blue chips and asset-heavy issues like insurance wholesalers and reinsurers 3) buying blue chips.