Advice for the coronavirus crash: ‘You make most of your money in a bear market; you just don’t realize it at the time’

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OPINION: The stock prices on your screen now say nothing about what these companies are worth, writes Vitaliy Katsenelson. But valuation is all that is going to matter in the long run.

With stock prices sinking fast, a client emailed me saying, “Your move, boss.” So here is our move: Especially in this coronavirus crash, we continue to seek out what we always look for globally — high-quality businesses that we can buy at a significant discount to fair value.

As famed value investor Shelby Davis observed: “You make most of your money in a bear market; you just don’t realize it at the time.”Writing this, I took heart in a recent column by Wall Street Journal columnist Jason Zweig, entitled “What Benjamin Graham Would Tell You to Do Now: Look in the Mirror.”

As I read this article, I felt blessed to reside as an investor in the wonderful world of Ben Graham. Despite all the chaos and panic out there, Graham helps us put everything into the right perspective and maintain great clarity.

 

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Probably a more realistic reflection of what these companies are worth than the bogus prices they were trading at six weeks ago

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