Buffet & I Agree on The Best Time to Invest!

Why am I patiently awaiting a temporary downturn? Because that’s a great time to buy high quality investments at a discount.  

wareren buffet being interviewed

In Business Insider’s article titled Warren Buffett’s 23 Most Brilliant Insights About Investing, Buffet quotes number seven and one, respectively, support my thinking:

“The best thing that happens to us is when a great company gets into temporary trouble….We want to buy them when they’re on the operating table.”

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

At times individual companies, real estate markets, and other investments have temporary downturns.  That’s an excellent time to buy! Instead of buying when everything is booming and higher priced, I like to buy when quality is high and prices are reduced.

The two most critical numbers for any investment are the sale price and ROI (return on investment or the profitability of the investment).  When I buy an investment that I believe is high quality, I’m betting on a good ROI. When I buy a high quality investment during a temporary downturn, I’m maximizing both key numbers, sale price and, potentially, ROI.  

That’s why I’m patiently prepping myself for a temporary downturn, always looking for high quality investments at reduced prices.

Do you buy in downturns? Or are a fair weather buy? Are you preparing for a downturn?

 

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