Rational Advisor

Peter Munk is Chairman and Ceo of Barrick Corp, one of the worlds largest gold companies, and was also chairman of Trizec, the real estate company. he’s one of the legends when it comes to investing.

Recently (Nov 5, 2007) he was asked - what was his advice to someone caught in the middle of the recent volatility?

Peter answered” It’s the same advice given by many people - don’t sell when there is a panic button out there. Just do nothing, sit back and enjoy it. I think you sell when people feel good about things. That is, when you want to buy is when you should be selling, and when you want to sell, is when you should be buying. Look at when we sold [property company] Trizec - a year ago.”
“There is an old saying of my grandafather’s - There is room for bears and room for bulls but there is no-room for the pigs and chickens. So, if you try to buy at the lowest point and sell at the very highest, you’re never going to make it. Don’t look for the last penny. Also being always afraid will get you slaughtered.”

Rational

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