The Daily Buffett

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Embrace the Downturns

July 5th

The best chance to deploy capital is when things are going down.

Warren Buffett

The best time to invest is during a market downturn. When panic ensues and others are selling, assets often become undervalued. This presents a golden opportunity to acquire valuable assets at a discount. These circumstances force a departure from complacency, leading to adaptive action and robust decision-making that leverages market dynamics to your advantage.

This idea extends beyond investing. In our personal lives, the most challenging times can catalyze profound growth. The downturns compel us to deploy our personal 'capital'—our time, energy, and focus—in ways that truly make a difference. We learn, adapt, and build resilience.

This wisdom encourages us to view downturns, whether in the market or life, not as threats, but as opportunities. In this context, lean into adversity. Recognize tumultuous periods as fertile ground for growth and progress. The deployment of capital—financial or personal—can yield its most rewarding returns when circumstances seem to be 'going down'.

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