Last week saw the worst stock market crash ever. The DOW has lost almost 40% of its value, trillions of dollars wiped out. A lot of experts have compared this to the crash of 1929-1932 . Only time will tell how things will play out, nobody can predict the future and nobody can perfectly predict a bottom. Can this go further down, probably yes , probably not. Nobody knows. But what is certain is that if you are patient , have a long time horizon and pick invest in businesses and not in stocks, then you will come out a winner.
If you bought stocks after the crash in ‘87, you would have experienced the biggest gains in your lifetime. This doesn’t mean we rush out to buy stocks right now. But there is no denying that if you’re a patient investor and don’t mind sailing in choppy waters, this is a once in a lifetime opportunity. And what is Warren Buffett is doing? He’s investing in solid companies at bargain prices.
There are lot of solid companies that are paying very high dividends right now , a few examples, Pfizer ( PFE , 8% Yield ) , Altria Group ( MO , 7.50 % Yield ) , Eli Lily ( LLY, 6.0 %).
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