I sold all my stocks a few weeks ago. Big mistake maybe, but my account value is so low that idm risking it anyways.
Planning to buy berkshire, maybe SnP500, then some tech stocks like msft and google/amzn.
Now that the market is back up again, I fear that I missed the chance to buy at a good price.
When is a good time to buy back in?
Hey there, I hear you’re wrestling with your investment strategy. Let’s talk about it.
You sold all your stocks and now you’re worried about missing the chance to buy back in at a good price. I get it.
Look, I get it. The allure of timing the market is strong. You’re thinking, “If I could just buy at the bottom and sell at the top, I’d be set for life!” But here’s the cold, hard truth: Consistently timing the market is about as likely as finding a unicorn in your backyard.
Even professional fund managers, with all their fancy algorithms and research teams, can’t do it reliably. And let me tell you, if those guys with their Bloomberg terminals and Ivy League degrees can’t pull it off, what makes you think you can do it from your laptop while sipping coffee in your pajamas?
Studies have shown that missing just a few of the market’s best days can dramatically impact your long-term returns. And guess what? Those best days often come right after the worst days. So while you’re sitting on the sidelines, waiting for the “perfect” moment to jump back in, you could be missing out on some of the biggest gains.
The market goes up, and the market goes down. That’s just what it does.
What separates successful investors from the rest isn’t their ability to predict these swings – it’s their fortitude to ride them out.
Think about it this way: The stock market is like an escalator in a very tall building. In the short term, it might go up or down a few floors. Sometimes it feels like you’re on a wild elevator ride. But over the long haul? That escalator is heading up, my friend.
Your job isn’t to jump on and off trying to catch the perfect ride. Your job is to get on that escalator and stay on it, no matter how bumpy the ride gets.
Now, about your plan to buy Berkshire, S&P 500, and some tech stocks – not bad, but let’s focus on that S&P 500 idea. It’s a solid foundation for any portfolio.
Here’s why I love the S&P 500:
- Instant diversification across 500 top U.S. companies.
- Historically solid returns – we’re talking about 10% average annual returns over the long haul.
- Low-cost index funds make it easy and cheap to invest in.
But here’s the key: You need the stomach to ride it out. When the market tanks (and it will), you need the fortitude to stay invested. When it soars (and it will), you need the discipline not to get greedy.
So, when’s a good time to buy back in? Now. Today. As soon as possible. Because it’s not about timing the market, it’s about time in the market.
Here’s your game plan:
- Stop trying to time the market. It doesn’t work.
- Set up automatic investments in a low-cost S&P 500 index fund.
- Use dollar-cost averaging – invest regularly, regardless of market conditions.
- Develop that iron stomach. When the market dips, remind yourself: This is normal. This is expected. This is an opportunity.
Remember, the market doesn’t care about your feelings. It’s going to fluctuate whether you like it or not. Your job is to stay the course.
Don’t beat yourself up over past mistakes. We all make them. What matters is what you do next. So take a deep breath, make a plan, and get back in the game.
And the next time the market takes a nosedive? Instead of panicking, I want you to smile. Because you’ll know that while everyone else is losing their heads, you’re busy buying quality assets at a discount.
That’s how real wealth is built. Not by jumping in and out of the market, but by consistently investing and having the fortitude to ride out the storms.