Indian markets especially small and mid-cap stocks have fared poorly in the last 12 months. Decline gathered pace in the past two weeks making investors jittery. Here is a collection of thoughts on weak markets from prominent investors.

Indian markets especially small and mid-cap stocks have fared poorly in the last 12 months. Decline gathered pace in the past two weeks making investors jittery. Here is a collection of thoughts on weak markets from prominent investors.

Dated: 21st July 2019

“A down market lets you buy more shares in great companies at favourable prices. If you know what you are doing, you’ll make most of your money from these periods. You just won’t realise it till much later.” Shelby Davis
“Christopher Davis’s grandfather used to say that you make the most money out of a bear market financial panic – you just don’t know it at the time. It’s always the case.” Li Lu
“We see the latest correction not as a disaster, but as an opportunity to acquire more shares at low prices. This is how great fortunes are made over time.” Peter Lynch

“Bear markets are great times to load up on stocks.” Ralph Wanger
“It’s not during up years that great investment track records are made!” Charles De Vaulx
“Down cycles are not fun. But they form the basis for enormous future profitability.” Steve Schwarzman
“Most investors take comfort from calm, steadily rising markets: roiling markets can drive investor panic. But these conventional reactions are inverted. When all feels calm and prices surge, the markets may feel safe; but, in fact, they are dangerous because few investors are focussing on risk. When one feels in the pit of one’s stomach the fear that accompanies plunging market prices, risk-taking becomes considerably less risky, because the risk is often priced into an asset’s lower valuation.” Seth Klarman
“Ironically, most of the risk to long-term investors in equities comes from panicking in the short-term and closing out positions at temporary low points.” Jeremy Grantham 
“Invest in time of chaos, harvest in times of prosperity.” Jonathon Sokoloff
“The best bargains are always found in frightening environments.” Howard Marks

Source: www.masterinvest.com

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