The third quarter of 2022 hadn’t been kind to investors, with the S&P 500 declining over 6% throughout the period. But as Warren Buffett famously said, “Be fearful when others are greedy and be greedy when others are fearful”.
Consumer confidence is at a low, inflation is high and market sentiment is teetering on the edge with the prospect of recessions being tossed around in the news. But while it seems like a terrible time for investors, it’s actually an incredibly useful time to be making new investments.
Recent declines in US tech valuations have had some super investors salivating at the prospect of picking up shares in companies where they see long-term value at huge discounts compared to 12 months ago. While their investment doesn’t necessarily signal the end of the difficulties for shareholders, there’s something to be said for their confidence in businesses with solid fundamentals....