I get it. It’s scary to check your investment accounts and see the value go down. I’m personally down over a quarter million bucks over the last TWO DAYS. But checking your balance through these turbulent times only serves to stress you out.

There’s another way to look at your investment portfolio. Instead of looking at what someone will pay you for it today, look at how many SHARES you own. For example, if you’re buying VT (Vanguard Total World Stock Index ETF) right now it’s about $105. Every time you buy more shares you OWN MORE SHARES OF THE WORLD. Buy, buy, buy. You’re racking up a larger and larger ownership stake of the companies of the world. If the price goes down that’s a GOOD thing because you’re acquiring even more shares when you buy!

Warren Buffet tells this great analogy about how the market prices things. He says imagine you buy a farm that produces milk, vegetables, etc for $500K. Your plan is to operate the farm for several decades and profitably sell your goods and grow the business. But across the street is this noisy neighbor. Every day he SCREAMS how much he’ll pay you for the farm. A week after you buy it he says “I’LL GIVE YOU $525K” nah bro, I’m running a farm here. A few days later he says “I’LL GIVE YOU $400K!” Come on dude, be quiet! I’m selling my milk and making bank.

That noisy neighbor is like the market. If he randomly lowballs you one day, WHO CARES. You’re under no obligation to take his offers and if you plan to be a business owner for decades, he should be ignored.

Politics aside, I’m doing what I’ve always been doing during this moment if market volatility. I’m investing early and often. I’m buying and holding index funds. I invest in a globally diverse portfolio of stocks and bonds (e.g. 54% VTI, 36% VXUS, 10% BND). It’s that simple. I’m confident this simple plan will outperform 95% of other investors and I’ll save time and stress by doing it.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.

-Jeremy

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By: Gabriela Gonzalez
Title: Why market dips are a gift for long-term investors
Sourced From: www.personalfinanceclub.com/why-market-dips-are-a-gift-for-long-term-investors/
Published Date: Tue, 08 Apr 2025 18:48:39 +0000

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