Warren Buffett talks about investment versus the tendency to focus on what’s happening today.
March 8-12 1942, newspapers were filled with extremely bad news from the pacific. Warren was watching a stock called City Services Preferred. It was sold at $84 in 1941 and it was selling at $40 on March 10.
Warren bought 3 shares of City Services Preferred on March 11, 1942 at $38.25. Dow Jones was down 2% because of all the bad news. Warren bought at the high of the day. City Services Preferred was down to $37 the same day. So the timing of buying was off.
Eventually, City Services Preferred was called later for over $200 a share. However, Warren sold his share when the stock was up to $40 in July 1942, pocketing $5.25 gain per share.
The conclusion: don’t time the market.
About the author: Hoan Do is a certified leadership coach with John Maxwell Team. Hoan have led multiple teams at Symantec Inc. across the globe delivering world-class solutions to protect consumers and businesses. Hoan is an expert in building highly performing teams. He believes that the best leader is the leader that could grow his followers to be leaders. Hoan has been organizing mastermind groups at work to share with other leaders about transformational leadership and coaching. He has trained many leaders both inside and outside Symantec via mastermind groups, workshops, and one-on-one coaching.
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