Periods of extreme volatility and uncertainty in the financial markets often result in investors making decisions detrimental to building long-term wealth. It is at times like these that it makes sense to reflect on the principles that have stood some of the world’s greatest investors in good stead over the decades. The quotes and charts below have been compiled from a report by Davis Advisors.
Avoid self-destructive investor behavior
Understand that crises are inevitable
Don’t attempt to time the market
Don’t let emotions guide your investment decisions
Recognize that short-term underperformance is inevitable
Disregard short-term forecasts and predictions
It is important to understand that periods of market uncertainty can create wealth-building opportunities for the patient, diligent, unemotional and long-term investor.
Source: Davis Advisors