Ouch!
Posted by KC | Posted in 401(k), Warren Buffett | Posted on 19-10-2008
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I’ll be posting a net worth update for October soon. It was delayed due to a much needed vacation. Honestly, each year at this time I take a vacation and I know the argument that when you’re in debt you shouldn’t be spending money on vacation – but for health reasons mental and otherwise, I feel that it is important to get away for a little bit.
Anyway – I returned home to a good surprise and a bad surprise. The good surprise was a drop in gas prices in the Boston area. Currently, some prices around here have dropped a little more than 30 cents.
The bad news, which will be outlined in my upcoming net worth post, is that my 401k took a solid punch to the nose in the past month, dropping by over 20% in value.
I saw it coming, but seeing it has a different feeling than experiencing it. In the end though, I know that I’m still just building that account and that stock value dropping is just code for “buy, buy, buy”.
It helps to have a little motivational article from the Oracle too…
“A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation’s many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now.”
So, with that said, onward we go.
