How Successful Stock Market Investors Handle a Crash

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but you should study history and history

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is the important thing you learn from

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what you learn from history is the

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market goes down it goes down a lot the

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math is simple there's been 93 years to

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Century this is easy to do the Market's

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had 50 declines of 10% or more so 50

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declines in 93 years but once every two

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years the market Falls

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10% we call that a correction that means

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that's a euphemism for losing a lot of

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money rapidly but we we call it a

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correction and now uh so 50 declines in

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93 years about once every two years the

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market Falls 10% now those 50 declines

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15 have been 25% or more that's known as

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a bare market we've had 15 declines in

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93 years so every six years the Market's

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going to have a 25% decline that's all

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you need to know you need to know the

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Market's going to go down sometime if

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you're not ready for that you shouldn't

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own stocks and it's good when it happens

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if you like a stock at 14 it goes to six

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that's great you understand the company

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you look at the balance sheet and

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they're doing fine you're hoping to get

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to 22 with it 14 to 22 is terrific 6 to

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22 is exceptional so you take advantage

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of these they're going to happen no one

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knows when they're going to happen it

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would be very people tell you about it

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after the fact that they predicted it

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but they predicted it 53 times and uh so

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you can take advantage of the Vol in the

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market if you understand what you own uh

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so I think that's the key the element of

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another key element is that you have

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plenty of time people are an

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unbelievable rush to buy a stock I'll

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give an example of a well-known company

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Walmart went public in October of

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1970 197 went public already had a great

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record it had 15 years performance great

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balance sheet you could have waited 10

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years saying you're very concerned

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investor you're not sure this Walmart

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can make it you want to check you're see

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him operate in small towns you're afraid

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they can only make it in seven or eight

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states you want to wait till they go to

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more States you keep waiting you could

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have bought Walmart 10 years after they

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went public and made 35 times your

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money if you bought it when they went

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public you would have made 500 times

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your money but you could waited 10 years

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after Walmart went public and made uh 30

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over 30 times your money