This Is Warren Buffett's No. 1 Tip for Protecting Your Investments Against a Bear Market
There's a difference between bad companies and good companies whose stock prices fall.
Overview
When investors think about risk, it's usually in terms of how much their portfolio's value has dropped.
Warren Buffett sees it a little differently. He differentiates between short-term price losses in a stock and the fundamental loss of value in a company. The former is a normal part of the investing process. The latter is something you want to keep out of your portfolio.
Details
In his 2024 annual letter to Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) shareholders, Buffett alluded to this when he said:
Source
Originally published at www.fool.com.
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