This week on the blog, Jonathan discusses how the impact of global events offers profitable opportunities for the long-term investor.
Good afternoon. This is Jonathan Satovsky of Satovsky Asset Management. On Wednesday, February 26, 2020 with a video blog update.
A little market highlight. We’ve had eighteen hundred point decline in financial markets last two days and fear has spiked materially.
People are worried about corona virus. People are worried about whatever they are worried about.
And ofcourse, worry just invites the flock of more worry worrywarts.
The upside and the upshot of the worry is that the Treasury yeilds have dropped to 1.3 percent on the 10-year which enables borrowing costs to decline significantly.
Whether you’re borrowing for starting a business or you’re borrowing to buy a home or you’re borrowing student loans.
Whatever the case may be, borrowing costs have declined.
And the upshot of that as Warren Buffett had acknowledged in his interview on CNBC on Monday.
The idea is not the market, the market, the market. Reframe the thinking in so far as the idea that you’re investing in businesses over a lifetime.
And if you think about investing in businesses as an example, several of the most profitable businesses in the world include Apple, which I’m using to record this video, VISA, which I see people sort of walking the streets and I’m pretty sure they use their credit cards to go to stores.
And along with Amazon, which packages are delivered at my home everyday, I don’t know about yours, as well as Microsoft and many other companies that are vital to everyday business and everyday functioning.
Internationally, companies like Roche are some of the most profitable companies in the world.
And people worry about corona virus and wanting to get out of the market because of the corona virus.
The reality is, it’s likely that a bio tech or pharmaceutical company can come up with a cure for corona virus and be extremely profitable.
So reframe your thinking about in and out of the market to having an ownership stake in businesses over a lifetime in order to provide for a sustainable life that’s healthy, wealthy and wise.
With that, enjoy your week.