There’s no denying that when Warren Buffett speaks, investors tend to listen. That’s the attention you receive when you’ve built a trillion-dollar business — Berkshire Hathaway (BRK.A 0.95%) (BRK.B -0.41%) — and had decades of sustained success.
That said, not all of Buffett’s words leave investors beaming with encouragement. Some are a bit more harsh, though much of what he says is for the better. One such piece of advice from Buffett is that people shouldn’t own stocks if they’re not prepared for them to drop 50%.
Hearing that can make some wonder why anybody would invest if there was a chance they’d lose half of their money. However, Buffett’s words are meant to mentally prepare investors for the irrational ways of the stock market, not deter them from investing.
The stock market is no stranger to sudden drops
People’s actions (selling, buying,…
