Did you make the same investment mistake as so many others? As the S&P 500 sits just a feather below its all-time high, did you miss the rally because you got scared and sold your stocks as soon as the Brexit news hit two weeks ago? This week’s Blue Harbinger Weekly provides a brief reminder on the importance of sticking to your long-term strategy. And we also review our latest new investment idea: a profitable, high-margin, growing, industrial engineering company that pays a big dividend and trades at a very attractive price.
As the S&P has ralled to just a feather below its all-time high, we're reminded of two great quotes. First, Warren Buffett's classic:
"Be fearful when others are greedy, and greedy when others are fearful."
This again proved true two weeks ago when the Brexit news first hit the wire and fearful investors drove the market lower by selling out of fear. Had you been brave enough to buy during the fear, you'd be up 6-7% today. And worse, many investors who did sell, missed the rally back.
The next quote is from Baron Rothschild, an 18th-century British nobleman and member of the Rothschild banking family. He is credited with first saying:
"Buy when there is blood in the streets."
This is the same general notion as the Buffett quote, and it proved true again two weeks ago. The main moral of the story is don't do anything silly by reacting inappropriately to short-term market news. Remember to stick to your long-term strategy. Long-term investing is a proven strategy for success.
This week's new investment idea is TE Connectivity (TEL). It's a profitable, high-margin, growing, industrial engineering company that pays an above-average dividend (2.6%) and currently trades at a very attractive price, especially following the Brexit news as it still hasn't recovered along with the rest of the market. You can read our full write-up on TEL here.