With a net worth of around $52.1 billion, Mexican billionaire Carlos Slim Helu ranks 12th on Forbes’ 2020 list of the world’s richest people. Slim made billions buying stakes in hundreds of companies, mostly through his global conglomerate Grupo Carso SAB. These purchases were often timely, as Slim has a knack for capitalizing on crises and knowing when a company is undervalued.
As the world grapples with the novel coronavirus and political unrest, listening to the wise words from great investors such as Slim can provide some necessary perspective to help make your own smart investment choices in these turbulent times.
While Slim has offered plenty of advice throughout his career on investing and building businesses, here are four tips that are particularly relevant to today’s investors.
1. Bad times can present opportunities
All times are good for those who know how to work and who have the tools to do so.
If you read the state of the world news, it is clearly a difficult time for many. Although Slim’s quote wasn’t about pandemics and political unrest, it’s still very relevant because it shows that even terrible times present opportunities.
Although there is nothing good about the new coronavirus, it offers the opportunity to take advantage of stock market declines for those willing to work to find discounted shares of companies poised for long-term success. For many investors, these bets have already paid off.
Bad times not only present the opportunity to grow your wealth if you are willing to work at it, but also to good for others if you have the the opportunity and the means to help. So use the tools at your disposal and aim to make your wallet and the world you live in stronger and better when the going gets tough.
2. Don’t Panic
A firm and patient optimism always pays off.
Economic and political uncertainty can make you worry about the future and cause you to make rash decisions, but that’s a recipe for disaster when it comes to managing money or making investments.
Instead, consider buying and holding stocks for the long term, avoid panic selling during market corrections, don’t sell prematurely during rallies, and remember that recoveries always happen is usually the best way forward.
3. Make sure these investments are solid
Courage has taught me no matter how bad a crisis… any wise investment will eventually pay off.
It’s more than just a reminder to stay the course during troubled times. The key here is that Slim is talking about his investments.
As recent events have taught us, the future is impossible to predict and black swan events can occur at any time. If you’ve researched your investments carefully, bought companies with management teams you trust, and made sure you’ve bought stocks of companies with sustainable competitive advantages, your investments should always pay off in the long run. , regardless of the obstacles in the way. you face.
4. Know what comes before
With a good perspective on history, we can have a better understanding of the past and the present, and therefore a clear vision of the future.
As Americans deal with protests and pandemics, it’s easy to sense that we live in a time of unique economic and political chaos and to react accordingly. But a look at a history book shows that’s just not the case.
Understanding what happened before helps put current events into context so you can make better, more informed decisions. Those who understood the history of market rallies and recoveriesfor example, were better positioned to weather the market downturn in March without panicking by selling their investments and missing the gathering that followed.
And understanding history doesn’t just help you avoid overreacting to market swings. It’s one of the keys to choosing wise investments because you can look back on past performance to make more informed choices about whether they’re ready for growth.
Take these Carlos Slim quotes to heart
In turbulent times, staying optimistic can be a challenge, especially if you struggle to place your own experiences in the context of the story. By learning from great investors and businessmen like Carlos Slim, it becomes easier to make the right money moves even in crisis situations.
Although it may not give you a spot on Forbes‘ list of the richest in the world, it should help you improve your own financial situation so that you can get the security you deserve.