We are experiencing unprecedented times as in terms of COVID-19, but we have had market crashes in the past. The most recent crashes were the dotcom bust in 1999-2000 and the housing crash in 2008-2009. Although many investors lost money during these times, some investors used these events to increase their wealth. Two examples of those investors were Warren Buffett and Carl Icahn.
What can we learn from these investors and past experiences?
1. These investors took direct positions and purchased fractional pieces of interest in registered companies. They did not passively invest in a fund that took positions on their behalves. Other times they bought the entire company.
2. The market consists of prices, not values. It is our job as investors to determine the value of the companies we are purchasing.
3. Suppression of prices can lead to an increase in revenue for any investor, retail, or institution.
CFS consults retail and institutional investors on how to navigate the markets. If you’d like to learn how to invest as an individual or a business, please contact CFS at 402-804-3777.