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Thursday, March 17, 2022

Invest During A Crisis, Not In It

 In the case of a large shipping company, there is great potential no matter what happens in geopolitics.


Most investors are making decisions these days because of the Russian invasion of Ukraine and that is a big mistake.



"In the long run, stocks will trade for what they really need,". "Months from today, Ukraine will not be on your trading radar, but good prices, created by focusing on it right now, will no longer be available."


Although world events may shake the market in significant ways, the volatility that occurs in each stock may not be directly related to the events in question.


It's a story Price has always written about, especially in the early days of Covid-19.


For the first half of 2020, the stock market took its biggest losses in recent years. Investors rush to sell their stock across the board… but why? While moms and pop businesses are popping up in large numbers, there was no reason to think that big companies that traded publicly would never go back. In fact there was every reason to think that a unity government would ensure they were right.



And, of course, that is exactly what happened. By October, 2020 the market had once again regained its value and more. Within the 12 months of the initial sale, investors who bought at the time of the liquidity settlement were well settled on a large profit margin.


That doesn't really mean a call to buy everything you see. Instead, Price makes the same suggestion that he always made: Buy good stocks, and especially if someone is willing to sell them for less than they should. In times of crisis, many people are willing to sell good stock for less than they should.


FedEx "has been a proven growth stock over the past decade despite widespread market disruptions," writes Price. "From Fiscal 2011 to 2021 finances EPS has increased by more than 270%. Shares have grown by more than 440%"


At the time, "progressive executives have seen about 148% complete recovery, but that number is much shorter than the actual amount created."


In fact, "Take out the temporary Covid-panic and FDX has only been available once since 2011 in the lower P / E area than now. Consumers in February 2016 were well-rewarded. FDX was about to rise from south to $ 120. North for $ 274 in less than two years, "