'If we sit on cash, waiting for a signal to go all-in during a bear market, we won’t find any. A portent only shows up in the rearview mirror long after the opportunity has come and gone.' Opinion
was our frequent Thursday mid-afternoon sojourns in his humble office at the defunct Manila Midtown Hotel and then much later at Crowne Plaza, Robinson’s Galleria in Edsa. It was he who taught me, rather comically, the wisdom of investing your money no matter how much, or how little you have: “Money should not be kept in a vault. It gets too lonely and bored to be boxed in. Keep it happy by letting it loose.
Eagle Securities President Joey Roxas told Rappler that based on the market’s moving averages, the local exchange is indeed in the bear’s hand: “What triggers the fall as usual is fear.” Buffet believes that bear markets present great opportunities to buy stocks at attractive prices. A decade earlier, the iconic investor wrote in his 2008 letter to Berkshire shareholders, “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” A decade later, in a 2018 interview with CNBC, he said, “The best chance to deploy capital is when things are going down.
The PSE Composite Index – previously known as the PHISIX and currently as the PSEi – is a stock market index consisting of 30 companies. As the PSE’s only broad-base index, it is frequently seen as a barometer of the general state of the Philippine business climate. The PSE regularly reviews and modifies the list, at least twice a year.
Buffet also thinks that valuations are important. “For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favorable business developments.”Institutional and long-term investors do not frequently trade their stocks and just hold on to them for years; some with the intent of leaving them to their heirs or other loved ones.
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