In this episode, Mark talks about insurance companies' growth and profit in time like these with hurricanes. Flexibility is what allows you to buy more of great businesses on sale. Some people are so focused on returns they aren’t focused on inflation, purchasing power, or time in investments. Purchasing power is ultimately what allows you to buy things. Focus on risk - this should be the number one reason! Short term moves in some stocks, not reasons you make long term decisions or why you invest in those companies. Cyclical and volatile stocks should be managed in a way you can get out or take profit when you need to. Mark also talks about the anxiety index, a gage of investor sentiment based on behaviors around the world. People become for bearish when the market is volatile, when you should be more on the bullish side. Buy and sell disciplines are equally important. The process is what makes you a successful investor - don’t be emotional in your investing.
September 7, 2017