You’re not alone if you’ve ever wondered whether it’s better to get in and out of stocks to make a quick profit or stay invested for the long haul. Many investors debate whether “timing the market” or “time in the market” is the smarter strategy.
Kevin O’Leary, a well-known investor and television personality, has clarified his position: “It’s impossible to time the market.” He's not the only one. Legendary investor Warren Buffett has already echoed similar thoughts for decades, urging people to focus on the bigger picture.
Don't Miss:
- ‘Scrolling to UBI': Deloitte's #1 fastest-growing software company allows users to earn money on their phones – invest today with $1,000 for just $0.25/share
- The global games market is projected to generate $272B by the end of the year — for $0.55/share, this VC-backed startup with a 7M+ userbase gives investors easy access to this asset market.
Timing the Market Is Risky Business
Kevin O’Leary recently shared his thoughts on investors who try to sell stocks when they believe they’re overvalued. “If you were concerned about valuations, you would have sold all your stock two quarters ago and you would have missed out on a huge part of this year’s gains,” O’Leary pointed out. His message? You can’t predict the market’s ups and downs and trying to do so can cost you.
Trending: This Adobe-backed AI marketing startup went from a $5 to $85 million valuation working with brands like L'Oréal, Hasbro, and Sweetgreen in just three years – here's how there's an opportunity to invest at $1,000 for only $0.50/share today.
O’Leary also highlighted that even the pros struggle with this: “88% of managers can’t beat the index. In other words, they can’t beat the S&P 500.” This means that most experts attempting to time the market are losing in the long run.
Instead of timing, O’Leary suggests diversifying your investments, maybe holding more fixed-income products or going to cash temporarily. But he warns against selling everything just because you think you know when the market will dip. It’s just too unpredictable.
Trending: Beating the market through ethical real estate investing' — this platform aims to give tenants equity in the homes they live in while scoring 17.17% average annual returns for investors – here’s how to join with just $100
Warren Buffett, the “Oracle of Omaha,” has been saying the same thing for years – “Don’t watch the market closely." He explains that reacting to every little market fluctuation can lead to poor decisions. He recommends that investors concentrate on the company’s long-term potential rather than fretting about day-to-day price fluctuations.
He famously said, “Only buy something that you’d be perfectly happy to hold if the market shuts down for 10 years.” His entire investment philosophy centers around purchasing solid, undervalued firms and remaining loyal to them through good times and bad. To him, investing in quality businesses with good leadership and long-term prospects is more important than trying to make quick profits based on market trends.
See Also: These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a 7-9% target yield with monthly dividends
Buffett also made an excellent analogy about investing in stocks, comparing it to buying into a local business you believe in. “If you had a chance to buy into a good company in your hometown – and you knew it was a good company and knew good people were running it and you bought in at a fair price, you wouldn’t want to get a quote every day,” he explained.
For him, investing should be about the business itself, not the daily ups and downs of the stock price.
Read Next:
- Groundbreaking trading app with a ‘Buy-Now-Pay-Later' feature for stocks tackles the $644 billion margin lending market – here’s how to get equity in it with just $500
- This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
