There have been other market crashes before covid-19 came along and the truth is there are going to be other ones after the covid-19 pandemic, the thing is we just have to be ready for situations that may come our way and for some of us who are still growing investors we need to keep learning from experts. Warren buffet who is a great and successful investor takes us through vital investment lessons we have to get aware of if we are going to come out strong of the situations that pandemic may want to throw our investment pattern into.
Take advantage of stock crises.
Be greedy when others are fearful.
With pandemic the price of several stocks have gone down drastically and it has made a lot of investors panic and sell their stock at a price that is not too convenient. The drop in the price of stocks according to the advice from Warren Buffet should make us invest the more, people who make huge profit from investments are those who are greedy about making investments during the time when others are filled with panic and fear.
Truth is, previous pandemic have shown us that things will return to normal and this pandemic will eventually fold up, this also means that the price of stock will get back to normal at the right time but only those who have made investments when the price was down will be able to enjoy the benefit that comes with the market stability.
Always have cash available.
The availability of cash will make it possible for you to take advantage of discount in the price of stock and invest as soon as you can before there is another surge in price. The availability of cash will make investment come with ease at the right time.
Invest on a long term note.
Our favourite holding period is forever.
Holding stocks for short time profit might not get you the type of profit you desire, learn to hold on to the stock you believe in on a long term basis, quickly selling off at the surge of a little higher price will not help your investment plan, learn to hold on a little bit longer for more increase in price to occur.
Invest in giant companies.
Those companies who hold a strong grip in their industry are the best ones to invest in according to the advice from Warren Buffet, do not just invest in small companies that have no grip at all look for those ones that have a long term plan to remain in the system and they have strategic plans towards it.