Posted by: The Soaring Eagle | September 20, 2011

How to Weather Mr. Market’s Moods


By now, you probably have created a portfolio of carefully picked stocks. Each has a wide Margin Of Safety (MOS). We did talk about how to achieve that in a previous post. Simply put: Never pay the price tag. Not only that; but go to the extent of paying 50 cents for each dollar. You may wonder: But how? If I found a beautiful business, and fell in love with it, how could I wait till its price fell to those levels?

The answer is the following: Since Mr. Market is moody, its movements are not always logical. Often times it does punish a good, or even a great, business, and yank its share price way down. If you did your homework of investigating good businesses and placing them on your radar screen, you would capture that opportunity and buy as many shares as you could. This also requires having cash put aside for such instances.

So back to the title of this post, in order to withstand price fluctuations, especially in times of uncertainty, or even recessions, you need a portfolio that has been built based on the principles we’ve been talking about; that’s number one. Number two, you need the emotional stamina to stay put! Yes, do nothing till the storm passes. In the middle of the hurricane, you can remain stable, because you know your businesses are good, and you know you had bought them at attractive prices, so they will bounce back for sure.

Any action you take, you will most probably regret later when the sun rises the next morning! Sometimes inaction is the best of actions. It’s helpful here to have a longer view of your investment, part of your investment strategy (which I will talk about in a future post) is to decide a time span of your portfolio. This could be three, five, or even 10 years. Having that in mind, helps you ignore monthly fluctuations and weather the storm!

Till the next post, happy investing 🙂

The Wealth Maker

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Responses

  1. Yes, Mr. Yaman! Absolutely, you hit the rod on the head. In deed, I released an involuntary self conscious having red this piece, including your art minded poem.

    I felt a sense of concern and affected having been a casualty of this incident. A serious victim of this unguided activities of the unscrupulous!

    I had once upon a time invested in hyip. Fund was really promising as it gets increased every dawn. Lol… Hoping to hit the Jackpot, I added more and more of my fund. Right! I am on the way. To tell the tale, after some week, the night thief exit to be found nowhere!

    That was how I lost my $$$$$. The website got shot.

    But this was a real personal experience. What did it taught me? “That I would never put my dime in hiyp”. And I learnt this lesson. In my life, I have never tired just to open such website muchless of knowing how much it cost to invest in it.

    I have also on several occassion, encountered series of this in online programs.

    But of all these wanton subjugation, it was a motivator to me. A propeller that kept on engineering me, “Go Ahead”. I wnet on, for I know winners never quit and quitters never win.

    “Today, I am a winner”.

    I use this same medium to ask my friends, co networkers and downlines across the globe never to get tired of trying what they are doing. That they should not quit. That they should always get infiltrated with hope and courage. But in this advise, stay away from Hiyp! Be weary of it, but you could do any other online business!

    Mr. Yaman, I hope to developing our own selfless program in time anon. I have catured your spirit as a just and sincere human. We deserve to work togther and share our experiences and help others get what they want because of this spate of unfortunate incidents in the world!

    To Our Greatest Success!

    • Thanks for the thoughtful comment!

      Apparently you commented on both posts: “How to weather Mr. Market’s moods” and “HYIP’s”

      I truly cherish your honest expression of your own experience. This adds value to the post and to the blog.

      I too look forward to finding the right medium for us to work more closely on a meaningful and fruitful activity.

      I invite you, if your time permits, to read other posts on this blog, and subscribe so that you get notified whenever something new is posted.

      The Wealth Maker


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