Perennial Advice from 3 Sages of Investing
Timeless Investing Advice for Uncertain Times
Advice, whether precedent or not, every age has its worries. If you’ve been around for the past two years, you’ve dealt with COVID, supply-chain shortages, interest rate hikes, and inflation surges—not to mention geopolitical instability in Eastern Europe. All things that keep investors at every stage up at night.
Whatever the current crises are, we can be sure of one thing: they’re going to affect the market, at least temporarily. The economy, after all, comprises countless variables—none more unpredictable than human behavior.
As scary as uncertainty can be, wisdom is the balm that soothes the fretful mind—especially if, unlike the market, its value is constant.
In that spirit, here are three timeless pieces of wisdom from great investing minds. No matter when you read this, their advice can help you stay grounded, informed, and strategic.
Market Crises Come and Go
“History provides a crucial insight regarding market crises: they are inevitable, painful, and ultimately surmountable.” — Shelby M.C. Davis, legendary mutual fund manager.
If history repeats itself, it’s no surprise that markets move in cycles—elation, rise, fear, fall, repeat. Every crisis has its nuances, but economic ebbs and flows are part and parcel of investing. The wise investor adapts rather than panics. Adjust, correct—don’t overreact.
These moments of volatility are “an inevitable part of any long-term investor’s journey.” Those who internalize this are much less likely to make emotional decisions, which leads nicely to our next point.
Keep Your Emotions Out of Investment Decisions
The father of value investing, Benjamin Graham, wrote in The Intelligent Investor that:
“Individuals who cannot master their emotions are ill-suited to profit from the investment process.”
We couldn’t agree more.
Some of investing’s greatest threats read like a list of the seven deadly sins—greed, pride, anger, fear, envy. Emotional reactions cause people to chase hot trends or flee at the first sign of a dip. And as Peter Lynch pointed out, this results in missed rebounds and missed opportunities to buy undervalued assets.
To dig deeper into how to separate emotion from your investing strategy, check out our article on cognitive and emotional investing biases.
Use Market Timing Cautiously
From 1977 to 1990, Peter Lynch managed the Fidelity Magellan Fund with extraordinary success. He famously said:
“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves."
His point? Trying to predict the market—buying and selling on whims—is often more damaging than simply weathering a downturn.
At NEST Financial, we take a similar stance. Sean McDougle relies on data, not drama. Markets move. But strategy holds.
Let’s take a look at the S&P 500’s annual historical returns. From 1992–2012, the average annual return was 8.2%. However, if you missed just the best 10 trading days? Your return fell to 4.5%. Missed 30? You netted zero. And if you missed the best 90 days—your annualized return was negative 9.4%.
The takeaway? Stay in the game.
Since its inception in 1926, the S&P 500 has delivered a real return of around 6.9% with dividends reinvested and adjusted for inflation—even including major historical crashes.
Poor returns often have less to do with the economy and more to do with investors’ reactions to it.
Conclusion: Stay the Course
It’s easy to get caught up in the fear, the headlines, or the market’s every twitch. But smart investing requires discipline, emotional control, and a long-term perspective.
Don’t let short-term turmoil derail your future.
If you’re tired of emotional investing and reactive decision-making, let us help you create a plan grounded in real data, smart strategy, and long-term goals. Drop us a line at info@nestfinancial.net.
We’re a boutique wealth management company in Austin helping families, business owners, and individuals stay focused, stay calm, and stay in the game.
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DISCLAIMER: This content is for educational purposes only and is not financial planning or investment advice. For tailored guidance, contact us at info@nestfinancial.net.