Looking back at 2022 and 2023, I noticed many investors showed little interest in stocks during that period. Discussions and questions about investing significantly decreased. Share prices were plummeting, and portfolios were deep in the red. Ironically, that was the perfect time to be excited—an opportunity to analyze great companies and strengthen your conviction to buy more.
We need to shift our mindset. Instead of feeling disheartened by low share prices, view them as opportunities - stocks on sale, waiting for those who invest with a business owner’s perspective. This mindset doesn’t apply to traders or speculators. Instead of being impatient and waiting for prices to rebound, think of it as an extended opportunity to accumulate shares at once-in-a-lifetime prices.
As Warren Buffett famously said, “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.” It’s easy to talk about buying undervalued stocks, but it’s much harder to take action when prices are dropping. Why? Because investors often struggle to endure temporary losses. Unrealistic expectations lead to irrational decisions.
A bear market is not just a challenge—it’s a chance to grow into a better investor. Think of 2022 as your modern-day version of the market crashes from 2000 or 2008. Those who lived through it were shaped by the experience. We were in the thick of it, learning resilience and sharpening our mindset. If you’ve weathered that storm, future market volatility will feel like a breeze.
By 2025, many investors will look back and regret not investing more during the bear market of 2022. Share prices from that time are unlikely to ever return. If you're reading this now, remember—you still have time. This year could mark the transition to the next bull market, and you don’t want to miss out. The window is closing, and the best time to prepare for your future wealth is now.
HOW TO STAY STRONG DURING THE BEAR MARKET
Here are some lessons from Seth Klarman’s letter. He is a highly successful fund manager and CEO of The Baupost Group. I hope my sharing here will help remind everyone to stay grounded and focus on what matters with a long-term view.
01. Once we buy a good company at a reasonable price, we only need to wait for the market to recognise our company's value and potential i.e. for the share price to recover and go up.
02. Even fund managers also experience buying a stock where the price keeps going down and down. This shows what we are facing now is normal and expected when buying good companies with falling stock prices.
03. Like every one of us, fund managers also keep adding positions on undervalued stocks and suffer temporary losses to their portfolio. If you have a long-term horizon, market will turn and the share price will recover and achieve new highs.
04. Achieving extraordinary returns means doing the extraordinary. We need to be contrarian investors if we want to beat the market and other investors out there. It all comes down to your conviction to buy more and hold until it recovers.
Do spend some time watching this video. I want us to learn CZ’s level of conviction, which can be applied to our stocks also. I will forever remember his words, "When you know you are right, you just have to have the stamina to last until the rest of the population catches on." https://fb.watch/cPBDA5wZn1/
So when we invest in a certain company, we must have the conviction that our company is performing well and has a bright future. While their stock price is crashing down, we just have to have the patience to wait until the rest of the investors realise the true potential of our companies, and the demand for their stocks will soon come back.
Stay strong, future millionaires!
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safely and consistently