The coronavirus has become unstoppable.
Globally, 78,442 people have been infected and more than 2.456 have already died. And, according to Dr. Nancy Messonnier, director of the National Center for Immunization and Respiratory Diseases, “This new virus represents a tremendous public health threat.”
Fear is well out of control with the Dow Jones down 815 points.
However, some of the top investors, like Warren Buffett advise that you don’t “buy or sell” on the headlines, as highlighted by Warren Buffett.
“The real question is: ‘Has the 10-year or 20-year outlook for American businesses changed in the last 24 or 48 hours?’” asked Buffett, as quoted by MarketWatch. “You’ll notice many of the businesses we partially own, American Express, Coca-Cola — those are businesses and you don’t buy or sell your business based on today’s headlines. If it gives you a chance to buy something you like and you can buy it even cheaper then it’s your good luck.”
Some of Buffett’s other top advice in times of panic include:
No. 1 – Have Cash on Hand
According to Warren Buffett, he keeps a lot of cash on hand “so that we can both withstand unprecedented losses and . . . quickly seize acquisition or investment opportunities,” as quoted by The College Investor.
No. 2—Don’t Follow the Herd
“A climate of fear is their best friend. Those who invest only when commentators are upbeat end up paying a heavy price for meaningless reassurance,” as quoted by CNBC.
No. 3 – Be Fearful When Others are Greedy
“Be fearful when others are greedy, and greedy when others are fearful,” the billionaire often said. It’s much like Sir John Templeton who advised investors to buy “excessive pessimism.” Even Baron Rothschild advises to buy the “blood in the streets.”
