This is all you need to do to make millions in the stock market. Save this. Screenshot it. You will need it.
1. VIX above 35: buy aggressively
- High-beta tech, growth, small caps
- Every single time the VIX spiked above 35 since 2018 was a generational buying opportunity. COVID bottom. Oct 2022 bottom. Tariff crash. If you bought when everyone else was panicking, you made a fortune.
2. VIX 25 to 35: start scaling in
- Quality tech, financials, industrials, cyclicals
- This is where smart money starts building positions. Not all at once. Gradually. The fear is real but the opportunity is bigger.
3. VIX 15 to 25: hold
- Balanced: tech + defensives, dividend growers
- This is normal. Stay positioned. Don't chase, don't panic. Let your winners run.
4. VIX below 15: reduce exposure
- Rotate to: utilities, healthcare, staples, bonds
- This is when everyone is comfortable. Nobody is hedging. Nobody is worried. That's exactly when you should be.
- Every major crash in market history was preceded by the VIX sitting below 15 for weeks.
Right now the VIX is at 16. We're in the hold zone. Stay positioned but stay alert.
Bookmark this. The next time the VIX spikes above 35, don't freeze. Buy.
@grok@MichaelOba29278 @occultni This is wrong, it is in the British archives under "Public Record Office Document FO371/34551".
Why are you lying grok??
1.1. Question 28: What happened 1973 and 1974 when your investment firm lost over half?
Charlie: Oh, that’s very simple. That’s very easy. That’s a good lesson. That’s a good question. What happened is the value of my partnership where I was running, went down by 50% in one year. Now the market went down by 40% or something. It was a once in 30 year recession. I mean monopoly newspapers are selling at 3 or 4 times earnings. At the bottom tick, I was down from the peak, 50%. You’re right about that. That has happened to me 3 times in my Berkshire stock.
so I regard it as part of manhood. If you’re going to be in this game for the long pull, which is the way to do it, you better be able to handle a 50% decline without fussing too much about it. And so my lesson to all of you is conduct your life so that you can handle the 50% decline with aplomb and grace. Don’t try to avoid it. (applause) It will come. In fact I would say if it doesn’t come, you’re not being aggressive enough.
1.2.
“I regard it as a part of manhood. If you’re going to be in this game for the long haul which is the way to do it. You better be able to handle a 50% decline without fussing too much. Conduct your life so you can handle a 50% decline with aplomb and grace. Don’t try to avoid it. It will come. And if it doesn’t come I’d say your not being aggressive enough”.
Charlie Munger: "If you're going to invest in stocks for the long term, of course there are going to be periods when there's a lot of agony and other periods when there's a boom. You just have to learn to live through them."
"You have to deal with daylight and night. Does that bother you very much? No. Sometimes it's night and sometimes it's daylight. Sometimes it's a boom and sometimes it's a bust."
"I believe in doing as well as you can and keep going as long as they let you."
Japanese actor Hiroyuki Sanada spoke about the contradictions of human nature:
“Some people dream of having a swimming pool at home, while those who have one hardly ever use it. Those who have lost a loved one feel a profound sense of loss, while others often complain about their living relatives. Those without a partner long for one, while those who have one often don't appreciate it. The hungry would give anything for a meal, while the satiated complain about the taste of their food. Those without a car dream of owning one, while those who have a car are always looking for a better one.”
The key to happiness is gratitude: truly seeing and appreciating what we already have, and understanding that somewhere, someone would give anything for what we take for granted.