- The Dow Jones Industrial Average took an 831-point dive on Oct. 11.
- Some experts and analysts said there’s no reason to fear a deeper stock market slide.
- Those looking to recoup lost funds are advised to take a page from Warren Buffett and keep investing.
It’s being called “Black Wednesday” after the Dow Jones Industrial Average took its biggest plunge since February on Oct. 10, 2018. No stock was spared from the wrecking, as every single stock on the Dow closed the day at a loss.
In the minutes preceding Wednesday’s closing bell, the market dropped more than 100 points and ratcheted up the day’s total dive to more than 831 points.
Analysts are trying to make sense of the drop and assuage fears and rumblings of a full-on panic. However counterintuitive it might feel, some experts said that now is the time to invest in the stock market. To those with expendable cash on hand, now’s your moment to capitalize on the market’s dip and buy up stocks you’ve had your eye on.
Warren Buffett Just Lost Billions — Here’s His Advice
Warren Buffett didn’t emerge unscathed from Wednesday’s drop — the world’s third-richest man lost roughly $4.5 billion in just one day, but that’s only a small fraction of his current $85.4 billion net worth. Berkshire Hathaway, Buffett’s holding company, dipped nearly 5 percent on Wednesday.
Panicked Wall Street looked to him, the Oracle of Omaha, for solace and answers. The 88-year-old billionaire investor has lived through and rebounded from the Great Depression, a world war, and the financial crisis of 2008, and not only recognizes the market’s instabilities but is prepared for the next market crash.
The throngs of investors who have sought Buffett’s level of wealth and success all follow one of his best-known maxims: “Be fearful when others are greedy, and be greedy when others are fearful.” The Buffett way is to seize the opportunity to profit on the fears of others and maintain faith in the market’s rebound, just as he concisely penned in a now-famous New York Times op-ed during the financial crisis: “In short, bad news is an investor’s best friend.”
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