Skip links

Warren Buffett: Red stocks are best not to watch

“Don’t look at the price list, look at the profit, the dividend. That’s the stock market,” Warren Buffett said.

According to CNBC, the US stock market is witnessing a difficult period, although it has recovered somewhat in the session of May 17, 2022.

The Dow John Industry Average weekly fell for seven straight weeks, its longest since 2001. Meanwhile, the S&P 500 weekly average fell for six straight weeks, its longest since June. 2011.

While investors were confused by the sell-off, CNBC echoed Warren Buffett’s advice in 2016: “I would advise people not to watch the markets too closely when they are plummeting. “.

According to Buffett, investors who buy stocks of reputable businesses will see results in the long run, while the fast speculators will end up “not having good results”.

“Money is made from investments in good companies over the long term. That’s really stock trading…If you’re trying to buy and sell stocks, worry about the price going down and want to take profits when the price goes up. there will be no good results,” billionaire Buffett said.

According to investor Buffett, if you can buy a reputable company that you understand well at a good price, you won’t need to look at the price list every day. Even instead of keeping track of the price list, what the real stock trader needs to check on a regular basis is the annual returns and dividends.

Sharing the same opinion, famous investor Jack Bogle told CNBC that the buy and hold strategy should be applied in the current context. With this situation, investors’ emotions are easily shaken when selling, cutting losses and wanting to catch the bottom back to the market.

“Be calm, don’t let market changes, even big fluctuations like the financial crisis, affect you. Never buy or sell continuously. Always keep a certain amount of securities. certain securities,” said Bogle, an investor.

In the same opinion, financial expert Ashton Lawrence of Goldfinch Wealth Management said that diversifying investments or buying reputable stocks, aiming for long-term investment is a wise choice at this time.

Similarly, financial advisor Sean M.Pearson of Ameriprise Financial also said: “The market will only correct, not forever sink. When things are brighter, the market is already on the rebound. If you miss this rally then you’re more likely to have financial trouble after you’ve sold your stop loss.”

Source: CNBC