Some calming thoughts from great investors

………………To read more subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1

While value investors wait for the dust to settle we might want to ponder the thoughts of some experienced investors on market ups and downs. By dust to settle I mean understanding the new economic/business environment we are in.  There are new rules on government help, disturbed demand patterns, interrupted supply chains, psychological trauma.

No one knows where all this is going to end up, but in the new world there will be a new set of strong players and weak players in markets, there will be companies with intrinsic value significantly higher than market price, and there will be companies with dangerously weak market positions and balance sheets.  But until the macroeconomic and government counteraction fog has cleared we’ll have great difficulty knowing which companies are bargains.

We have usually made our best purchases when apprehensions about some macro event were at a peak.  Fear is the foe of the faddist, but the friend of the fundamentalist.

                                                 Warren Buffett (B.H. 1994)

One of the ablest investment men I have ever known told me many years ago that in the stock market a good nervous system is even more important than a good head

Philip

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  ActivTrades

• 

  Matt Simpson

• 

  Anton F Balint

• 

  Mary Ann Callahan