Investing like Warren Buffet
I have a large concentration of my net worth in Apple stock [see Buffet on diversification] and in recent weeks, those shares went down 20%. This didn't put a smile on my face but maybe I should've. I'm a net-buyer of Apple stock so today's low price is a discount to what it used to be. This sounds familiar... here's a quote from "The essays of Warrent Buffet - lessons for corporate america."
"If you plan to eat hamburgers throughout your life and are not a cattle producer, should you wish for higher or lower prices for beef. Likewise,if you are going to buy a car from time to time but are not a car manufacturer, should you prefer higher or lower car prices ? These questions, of course, answer themselves.
But now for the final exam: If you expect to be a net saver during the next five years,should you hope for a higher or lower stock market during that period ? Many investors get this one wrong. Even though they are going to be net buyers of stocks for years to come they get elated when stock prices rise and depressed when they fall."
I'm buying more Apple stock.