- Bad news from Europe, macro news and other headlines would not cause you to sell a farm run by capable people, or an apartment house where you had rents rising. You wouldn't sell it just because there is some bad news. A McDonald franchisee that has a good business wouldn't sell the business because of what is in the news. You know you will do well over time and that should be the same with stocks.
- To buy and sell stocks on current news is just crazy. Dancing in and out of markets based on the news is a terrible mistake.
- You have to treat owning stock like owning a business. The above farmers, landlords and MCD franchisees wouldn't buy and sell their businesses depending on what's in the newspapers.
- Buffett bought his first stock when he was 11 years old and that was three months after Pearl Harbor and the death march of Bataan was going on etc. All the news was terrible, but it was a great time to buy stocks.
- [ As an aside, Julian Robertson was on CNBC too this week and he said something similar. He said now is the time to invest. He knows a lot of very good investors that lost their way by being worried about Europe, QE2, QE3 etc, not realizing that there are a lot of marvelous companies at reasonable prices. He likes AAPL, Ryan Air, OCN, COF; doesn't like steel ]