Warren Buffet is the first name that comes to mind when anybody has to lecture a flippant investor on creating wealth and long term investments. All the more so in such dire economic times when the price of crude oil is talked to reach $ 200 per barrel, stoking inflation that will perhaps scorch all and sundry, and global stock markets (not all though) that are falling apart like a house of cards.
While bad news on the oil front only compounds the other negatives it is in times like these that intelligent investors can dream of striking it big. Remember, the old adage 'Buy low, sell high'.
So what if the Indian stock markets have lopped off a whopping 40 per cent since its 21K heydays days in the middle of January 2008?
So what if market analysts are crying themselves hoarse about the dangers ahead from any and every forum available to them? Poor fellows; always get the wrong end of the stick. Do they?
So what if investors -- retail, like you and me, and big guns, otherwise known as high net worth individuals -- are thinking not one, not two but ten nervous times before even thinking of putting their money into stocks now that stocks are available cheap?
If you are still waiting for markets to tank then you will never be able to put your money into stocks (or mutual funds or any other asset) that you think are available at 'value for money' prices. But if you ask me, go ahead. There is no time better than today to start investing for the long-term. Remember long term as in for a period of 10 to 15 years. No less.
Text: Prasanna D Zore
Illustrations: Uttam Ghosh
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