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Has the Stock Market Crash of 2014 Begun?

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October 15, 2014 – Comments (9) | RELATED TICKERS: GLD , SLV , BRK-B

Has the Stock Market Crash of 2014 Begun?

9 Comments – Post Your Own

#1) On October 15, 2014 at 11:24 PM, jiltin (46.05) wrote:

The post preaches BS like this ==> recall Berkshire Hathaway (NYSE: BRK-B  ) CEO Warren Buffett's aphorism that "unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market."

It is pure BS. What a person can do after his/her stock down 50%?

Investor must be intelligent enough to understand the crash.

Yes, market is crashing and continue to go down until Next FOMC meeting Oct 28-29.

And then, everyone will declare it is crash.

 

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#2) On October 15, 2014 at 11:38 PM, notyouagain (43.49) wrote:

What can a person do if their stock goes down 50%?

If Verizon falls to $25 I'd be glad to show you.... 

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#3) On October 16, 2014 at 12:06 AM, valuemoney (< 20) wrote:

 "unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market."

It is pure BS. What a person can do after his/her stock down 50%?

Investor must be intelligent enough to understand the crash.

what is meant here.... I will give an example

Lets say I bought company XYZ yesterday. I bought it at. Lets say $50. I think it is worth $70. The next day it trades at $46. Do I sell it because I think the market is heading down? I mean I just bought it the day before for $50. Two days later.it goes to $40. Then the next two weeks the market nosedives and my stock goes to $25. Do I sell it then when I think it is worth $70? Yes because of panic? No. And why would I sell it when it went to $46. Rewind and lets say instead of after it going to $40 the next day it goes to $55 cus the market has a huge rally and someone on TV reports a potential buyout. Well no matter what the MOOD of the market is you better know what your stuff is roughly worth and not buy and sell because u get super excited or super scare.   

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#4) On October 16, 2014 at 3:27 AM, notyouagain (43.49) wrote:

Ok...this bugs me enough to provoke a response.

Here we go.

Suppose there's a mass panic tomorrow that triggers all the fund investors to flee for the exit like the mindless herd of lemmings they are. The market plunges 50%.

Suppose I'm holding Microsoft and it plunges right along with the rest of the market as funds decrease their positions in it along with everything else so they can give the stampeding imbeciles their money.

Oh, no! Microsoft has fallen to $22!!! 

Wait a minute. Is that all you see? All you see is the unrealized, PAPER loss of Microsoft falling from around $43 down to $22?

What, oh what, will I do?

Well, I'm a dividend investor. I've lost nothing because I never intended to sell tomorrow anyway. My entire goal is to build income. I'm not even cashing my dividend checks at this stage. I'm reinvesting them.

Is Microsoft suddenly worse off because panic-stricken idiots had a mass anxiety attack and crashed the market?

No. Their total debt is still $23.2B, and their total cash is still $85.17B.

Their interest coverage still remains a nice, comfy "51"...they still earn $51 for each dollar they have to pay in interest expense.

As long as the world really doesn't actually split in two the size of their cash hoard will see them through this crash or any other crash.

The dividend? Earnings weren't hurt just because share prices fell. We're all still here, doing business, interacting on the internet, etc.

And that $1.24 dividend still takes only 41% of their earnings.

The stampede of the idiots affected nothing but share prices. They only hurt themselves. They sure didn't hurt me.

I'm left looking at a cash-rich company that is STILL a financial fortress paying an annual dividend of $1.24 a share that just had its share price cut in half by the actions of a bunch of bovine morons that just can't comprehend why I'm so tickled about the whole thing.

That dividend is just as safe as it ever was. And while the stupidity lasts, now I can buy shares paying that dividend for half what I was paying before.

The market will recover, as it always does. This OPPORTUNITY won't last forever!!!

I can always hope it'll last a long time, but it never lasts long enough.

This is why I'm a dividend investor. I like not only the prospect of a good return, but also the prospect of being the smart little piggy in the brick sh*thouse when the storm hits.

So I ask again: how has the stampede of the retards affected me? How has it affected Microsoft?

Now, no matter whether you're a dividend investor like me or, like valuemoney, have a certain value range you believe your company is worth, either way your approach to buying stocks should be that of someone buying a piece of a business, not that of someone buying a lottery ticket.

Because if all you're buying is a piece of paper you hope to sell for more than you paid for it, then chances are you're one of the idiots. 

 

 

 

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#5) On October 16, 2014 at 3:38 AM, notyouagain (43.49) wrote:

P.S.

 

I love crashes. And that's no B.S. 

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#6) On October 16, 2014 at 7:35 PM, Stockllama10 (85.24) wrote:

Buy high, sell low, guys. *nod nod*

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#7) On October 16, 2014 at 10:29 PM, notyouagain (43.49) wrote:

That's what they end up doing. It's actually comical. I think some people that shouldn't even be buying stocks get all excited when the market's rising, and think they're going to buy high and sell higher in time to make next month's rent or car payment. Then they can't wait out the downturn because they need the money.

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#8) On October 17, 2014 at 5:09 PM, JohnCLeven (30.27) wrote:

I wake up every day and cheer for the market to crash. 

I'm 25 and so probably have a 50+ year investing horizon ahead of me, so any oppunities to buy incredible businesses at cheap prices would be much appreciated.

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#9) On October 17, 2014 at 8:37 PM, notyouagain (43.49) wrote:

Wow. You're only 25? The level of knowledge and wisdom in your posts sure had me fooled!

You will be a rich, rich, man after all that time,  JohnCLeven

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