Warren Buffett: why market declines are an opportunity for buyers

Warren Buffett explains why long-term investors, who are net buyers, should be happy about stock market declines.

By the SpyStocks desk · 9mo ago · 1 min read

How do you react when the market falls?

A profound quote from Warren Buffett from his investor letter, relevant to the current times:

"If you expect to be a net buyer of stocks in the future, either directly with your money or indirectly, you are harmed when stocks rise. You benefit when stocks fall."

His intention is very simple:

Whoever only buys wants good prices; they should be happy when the market falls, because it lowers prices, as opposed to a rise which makes the product they plan to buy more expensive.

A perpetual buyer's approach can make red days joyful.

Most investors still don't understand that they make most of their money in the long term only thanks to the opportunities created for them in a falling market.

A decline is much better than a rise.

Think about it!

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