STREET DOGS

The thing to keep in mind about bear markets is that they are good news. We should be yearning for those situations where companies become cheaper than they should be. When people were jumping off bridges in 1974 because the market was terrible Warren Buffett was deploying hundreds of millions of dollars into opportunities that he considered to be nearly risk-free. You know why Warren Buffett is celebrated as one of the greatest investors in history? Well, in no small part, it's because of what he was doing in 1974 - increasing his exposure to stocks without really increasing his level of risk. Call that the year that made Warren Buffett "WARREN BUFFETT." – Bill Mann.

If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period? Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. In effect, they rejoice because prices have risen for the “hamburgers” they will soon be buying. This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices. This is one of the hardest parts about being an investor - in essence you’re rooting for your current holdings to drop in price to lower your average purchase price. – Warren Buffett.

Who benefits from a market correction? Those with optionality. Cash offers investors optionality in the face of a declining market. There haven’t been many opportunities to exercise that optionality but [now] anyone holding cash or bonds who’s been waiting for a better entry point just may get it. – Ben Carlson.