The market has seen quite a bit of turbulence over the past several weeks, as European debt troubles and concerns about the U.S.’s own economic recovery have riled many investors. And in a recent column for Canada’s Globe & Mail, Validea CEO John Reese delves back into some shareholder letters Warren Buffett wrote during past turbulent times, and finds several lessons from the “Oracle of Omaha” that he says are still quite relevant for today’s market.
Among the lessons Reese uncovered from Buffett’s 1975, 1990, and 2000 letters:
- Focus on the business, and the long term
- ‘Good’ is better than ‘cheap’
- Follow the numbers, not the crowd
“While these three Buffett-inspired lessons were offered anywhere from 10 to 35 years ago, they ring as true today as they did back then,” Reese says. “Following those lessons might have helped investors avoid a good deal of the damage caused by the 2008-09 meltdown. As we move through the market’s latest round of problems, investors would be wise to heed Mr. Buffett’s words once again.”
To read more about these lessons, click here to read the full column.