Originally Posted by coaster
You know Warren Buffet
(wow, I'm impressed)
Actually, no. I was referring to a real estate broker I once worked for, by the name of C.P. Wright.
Buffett (who has been buying up stocks like crazy) said, "Be fearful when others are greedy, and greedy when others are fearful."
I think I related the story here of a truck driver I knew, once upon a time. I talked to him in about 1997, give or take. Trucking was a second career, a "hobby" career for him, after retiring from something else. He said on that Black Tuesday in October of 1987, he bought Wal-Mart stock all day long, until he had put every available penny he had in it. Wal-Mart lost half it's value that day.
In the next ten years after that, Wal-Mart stock doubled, split, doubled, split, doubled, split, and doubled again.
The trucker said he figured that one day of courage let him fully retire 5 years earlier than he had expected.
In that time, we bought Wal-Mart stock in 1990. We paid $500 for it. We sold that stock for $5000 about 3 years ago, to pay for a trailer to carry our hot rod.
And just to put the whole thing in perspective, Sam Walton was asked how he felt about losing half his wealth in that one day in 1987.
"What do you mean?" he asked. "Every store I had yesterday, I have today. Every warehouse I had yesterday, I have today. Every truck I had yesterday, I have today. Every employee I had yesterday, I have today. The stock is just a place marker. The 'wealth' was on paper. I didn't lose anything that really counted."
And the same thing is true today, for Wal-Mart and many other good companies (such as Toys R Us, where I work). The stock may not be worth as much as it was a year ago, but the companies are sound, and it will all come back.
Our IRA's (which were 401K's, but were converted when we quit working for Werner Enterprises) lost a ton of money. But I'm betting that 10 years from now, you won't be able to tell it.