Legendary investor Warren Buffett has consistently promoted the idea of overlooking short-term market fluctuations and concentrating on long-term investing. Despite his company, Berkshire Hathaway, significantly reducing its stake in Apple by nearly 50 per cent in a major sell-off before a market downturn, the 93-year-old remains steadfast in his belief that investing is a long-term endeavour.
“If you’re worried about corrections, you shouldn’t own stocks. It’s a terrible mistake to think of stocks as something that bob up and down and that you should pay attention to those bobs up and down,” Buffett said in a 2015 interview with The Street.
He added that if you're saving for a long-term goal like retirement or purchasing a home, the fluctuations of any specific day, week, or year should not be a major concern.
“It’s going to go down sometimes, if you own a stock, so why worry about it? The point is to buy something you like at a price you like and then hold it for 20 years. You should not look at it day-to-day,” Buffett told the publication.
In an interview with CNBC, the veteran recommended that long-term investors maintain a diversified portfolio of low-cost index funds, as it is practically the best approach most of the time.
In a 2017 interview, Warren Buffett advised regularly investing in a low-cost S&P 500 index fund and continuing to buy it through both good times and bad, especially during downturns.
At Berkshire Hathaway's annual shareholder meeting in May, Buffett recently stated that he was not eager to make investments unless he believed they involved minimal risk and had the potential for substantial returns.
Buffett has always shared these helpful tips on several occasions for investors to navigate the stock market's highs and lows and make the best return possible from their investments.
ALSO READ | Sad Day For Bangladesh: Kiran Mazumdar-Shaw Condemns Attack On Mujibur Rahman Statue