Why You Shouldn’t Invest In “Stocks”, Buy Good Companies Instead
(00:01.378)
Be a great company buyer, not a great stock buyer, a great company buyer. I want to share with you a quote, one of the greats, great investors of all time, gentleman by the name of Stanley Druckenmiller. And he was talking about the dot com collapse. Stanley made a mistake. He hasn’t made many, but he made a mistake during the dot com run up. I’m quote Stanley here.
I bought $6 billion worth of tech stocks and in six weeks I had lost three billion in that one play. You asked me what I learned. I didn’t learn anything. I already knew that I wasn’t supposed to do that. I was just an emotional basket case and I couldn’t help myself. So maybe I learned not to do it again, but I already knew
We at Markowski Investments, and what I try to teach on the podcast, the radio show here, we like to build ownership in great businesses, great businesses that have great ideas, that have certain economic and niche advantages, companies that have great management. And we own
these companies based upon our expectations of performance over time. One thing that we don’t try to do, we don’t try to do is time the market. And I run into problems now in particular, and again, it goes in waves. I’ve done a lot of television and I haven’t done
much as of late because what they’re asking out of me, I won’t do. They want me to go on programs and what is my recommendation? What do I think of this stock over the next six weeks? What do I think of that over the next month? I don’t do that. That’s not what we do at Markowski Investments. And quite frankly, it doesn’t serve the general public at all. Again, it might be great for TV, but it’s not great for your portfolio. It’s just two different things.
(02:27.03)
Anyway, if it’s a solid business and we feel it’s valued properly, we’re going to buy it. I don’t care what the freaking market’s OK, not stock pickers, not market timers. We’re great business owners and buyers. It’s just that simple. Set simple. should say being a Raven Bear market. If I think it’s a high quality company, it’s going to be great for the future. care what the market’s doing at that time. OK.
we are going to accumulate. If you’re holding good and great companies, you got nothing to worry about when the markets reverse. Yeah, your portfolio is going to decline. OK. You didn’t you think that everything we do at Markowski Investments always goes up? What are you high? Nobody. It’s not the case. That’s the only person that did that was Bernie Madoff. Yeah. How’d that work out? No.
No, during the Great Recession, of course, our portfolios went down. That’s OK. That’s OK. You know what’s going to happen on the other side, right? long as you don’t do anything stupid. And again, that also offers up an opportunity if you’ve got dividend paying stocks and you’re reinvesting it, you’re you’re buying more of these great companies on sale. It is what it is. Good and great companies bounce back.
from Warren Buffett here. is back to 2016. The market was countless, you know, fluctuations. And he always got to ask, what do you think about the market? He must be so tired to answer any things. Anyway, what investors should do during times of tumult? That was a question that was asked of Warren Buffett in 2016 when the markets were acting a little bit crazy. He said, I would tell investors don’t watch the market closely.
Investors that buy good companies over time will see results five, 10, 20, 30 years down the road. If they’re trying to buy and sell stocks, they’re not going to have very good results. The money is made by investing, by owning good companies for long periods of time. That’s what people should do with stocks. Back in 2002, Berkshire Hathaway’s shareholders meeting, he even gave a little more perspective. Similar here.
(04:51.786)
Don’t obsess over finding a perfect time to buy a stock. Go ahead, invest and then observe over time to see if you should buy more or sell. This strategy leads to a higher chance of return. It alleviates some of the pressure of trying to predict the stock market. Stock dips, shares become less expensive. So buy more of them. This is Warren Buffett. We haven’t the faintest idea what the stock market is going to do when it opens on Monday.
Not been good at timing. We’ve been reasonably good at figuring out when we’re getting enough for our money.
So you think that the people you’re watching on TV that are telling you what’s going to happen over the next day, week, month, you think they know what they’re talking about?
No, no, no, just because again, just because it’s good for TV and good for ratings doesn’t necessarily mean it’s good for your portfolio. Okay, Warren Buffett. Okay, same thing we’ve been trying to teach here for some time. Jack Bogle, another great investor. Buying stocks and holding was the best way to invest because your emotions will defeat you totally if you try to sell your holdings to avoid losses and get.
back in afterwards. Stay the course. Don’t let these changes the market, even the big ones, change your mind and never, never, never, never be in or out of the market, always in at a certain level. Watchdog on wallstreet .com.
