Page 11 - DIY Investor Magazine Issue 24
P. 11

    If it is not and it is just a hiccup, then I will reinvest and realign my portfolios according to the existing market conditions.
This will incur a small loss but is not a big deal. These decisions can only be made by the individual in the light of their own experiences and knowledge.
As a fourteen year old I went away as an unpaid “decky learner” on the Kingston Garnet, a deep sea fishing boat from Hull.
The trips to Iceland were around five weeks and of course during that time the weather could on occasions be uncomfortable.
This was the time of beam trawlers, the stern trawler had not yet been designed.
When hauling the nets the boat was beam onto the sea, and a big wave coming on board required agility, common sense and luck to avoid casualties.
I now get to my point.
The skipper addressed my concerns by saying that if you have taken all the action within your knowledge to
make the boat and crew safe, then you can do no more – the rest is luck!
So is this so dissimilar from investing in today’s markets? Of course mistakes are unlikely to be life threatening, but you still want your savings to be as safe as is sensibly possible.
The markets can, on occasions like now, be as unpredictable as the weather.
If it looks stormy and you feel insecure, then take action and go into cash or the equivalent.
We have the luxury of not having to carry on fishing to secure a livelihood. We can wait for better investment weather.
Best wishes and good investing, Douglas.
Founder & Chairman * Warren Buffet
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11 DIY Investor Magazine | Apr 2020

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