Uncertain Times Call for Common Sense

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Special Message from Dennis Genord 

Sir John Templeton, a respected investment counselor, and portfolio manager, once stated, "The stock market always has been, and always will be, subject to wide degrees of fluctuations. When prices decline farther and farther, it is only natural human emotion to become cautious. Investors who have no prearranged plan to guide them not only fail to add to their stock holdings at the lower levels, but too frequently they add to the downward pressure by selling out part or all the stocks they own.

Profitable investing is mainly common sense. Don't get carried away by enthusiasm. Don't get carried away by despondency. Don't buy things you don't understand. Always study what you buy in advance. Make long-range plans. Know in advance that you are going to have to live through bear markets. Just use plain common sense and the chances are that you'll have superior long-term investment performance."

Many of these truths are heard regularly at our online events, the BetterInvesting National Convention, and in our chapter classes. What we're going through is not unlike other periods of financial history. BetterInvesting members have understood this since the time of its inception in 1951. We have a plan and it is rooted in the common sense principles provided by the organization's founders. These principles include:
 
  1. Invest a set amount of money regularly.
  2. Reinvest all earnings.
  3. Buy stock in high-quality growth companies.
  4. Diversify your portfolio.
We spend most of our energy implementing the third principle: looking for high-quality companies, and determining a fair price to pay for the company's stock. We do this using the Stock Selection Guide (SSG).

Regardless of the type of market we're currently in, long-term investors should continue seeking stocks of high-quality growth companies, which are trading at historically attractive valuations. The recent severe drops we have experienced in the market can result in just that - attractive valuations.

We cannot draw any fixed conclusions about the effects of pandemics upon stock-market performance, but I am confident we will get through this, and the long term investor will be rewarded for staying the course. Innovation, technology, and the indomitable human spirit will win in the end.

If you would like to speak with someone experienced in these types of market conditions, please reach out to your local chapter. They would love to help you.

We're providing a special webinar dedicated to investing in turbulent times to help provide perspective and to instill confidence where needed. You won't want to miss it!

We wish you calm and clarity in these turbulent yet opportune times.

Dennis Genord, Director – New Member Growth, Education and Chapter Development

Related Resources: 


Investing in Turbulent Times Educational Webinar 




 
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