I follow a strategy called focus investing. Focus investing is a strategy used by legendary investors Warren Buffett and Charlie Munger. For more on my strategy, click here.
In this post, I will cover:
- My general thoughts on the market
- The S&P 500
- My Wolf Pie M1 Finance results
Unlike last month, The S&P 500 is now in correction territory (a decline of 10% or greater). This is the first correction in over a year (December 2018). Long-term investors get excited about corrections because we can buy high-quality stocks at cheaper prices.
There have been 123 corrections and 32 bear markets from 1900 through 2013. So on average, corrections occur about once a year and bear markets happen about every 3.5 years.
The market recovers from a correction to its previous highs within an average of 10 months. An average bear market lasts 15 months with an average decline of 32 percent.
The S&P 500 is now 12.41% off of its all-time high of 3337.77 that was set on January 22nd.
I have a 10+ year investing time horizon so I’m still investing for the long-run as usual and will continue dollar-cost averaging into my Wolf Pie.
My portfolio is down 2.52% since I started it on August 23rd, 2019.
So what do you think? Share this story on social media and leave a comment in the comment box.
I/we own shares of all of the stocks depicted in the portfolios.
Except for Wolves of Investing, I/we are not receiving any compensation from and do not have any business dealings with any companies whose stocks are discussed in this article.
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Donnie Nguyen is the founder and CEO of Wolves of Investing. He started investing in the stock market in the early 2000s. He follows the teachings of Peter Lynch, Warren Buffett, and other investing legends. When he's not investing or blogging, he loves spending time with his family traveling and experiencing the world.
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