It’s a scary time to be an investor in stocks now. The US government has warned the world that Russia could launch a large-scale invasion of Ukraine at any moment. With the historically frosty relationship between the USA and Russia, any use of military force by Russia against Ukraine could result in the USA stepping in.
War between countries is a painful tragedy, not just for the citizens involved, but for humanity as a whole. Without downplaying the horrors of war, how should stock market investors approach the current tense situation between the USA and Russia?
Thankfully, there’s one classic investing book, Common Stocks and Uncommon Profits, first published in the late 1950s in the USA, that provides a useful framework for thinking about this. The book is written by Phillip Fisher, who’s an excellent investor in his own right, but is perhaps most famous for being an influential figure in Warren Buffett’s own evolution as an investor. B...