Buffett - A perplexing bull market

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I’ve searched the entire market for net current asset value investments. It’s not looking too hopeful as only four were shortlisted for further investigation. If one of them does turn out to be worth investing in I’ll write about it next week.

In the meantime here is some more of the Buffett story – timeless truths to be learnt/remembered, as always.

Bull market

Breathless, over-excited punting on shares seems to come in waves every few years.

Each cycle, with its crash and its casualties, teaches ‘revelatory’ lessons to those who pay little attention to stock market history, or who are complete greenhorns.

To wiser heads it reinforces determination to remember to take a position to exploit the madness of the crowd, rather than participate in the madness.

The 1960s rise in the market came on top of the 1950s boom. The hangover from the excitement caused many-a company to go bust and many-a speculator to lose a bundle.

But how did Warren see things at the time, that is, between 1967 and 1969? that is, Warren the investor, not a speculator.

GO-GO years

The two decades following the Depression were years when the almost universal advice was, “Do not touch shares, they are dangerous, by nature, speculative.”

This attitude held down share prices until the early 1950s. There were many bargains to be had.

As companies proved that the good economic times fed through into rising profits and dividends, share prices rose.

The mood then changed: “Shares are great things to own. My friend doubled his money in a couple of years. He loves investing in the stock market. I’ll jump in too.”

This was a new generation who had experienced……To read the rest of this article, and more like it, subscribe to my premium newsletter Deep Value Shares – click here http://newsletters.advfn.com/deepvalueshares/subscribe-1

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