The 2008-2009 stock market crash may have made you pessimistic about investing.
However, history tells us that you have an advantage. This event actually offers you a great opportunity to find good stocks to invest in.
Buffett recently wrote in the New York Times that for his personal account, he bought common stocks in this market.
Another legendary investor with an outstanding record over several decades wrote, "One principle that I have used throughout my career is to invest at the point of maximum pessimism."
So, spend some time learning to invest wisely.
Based on a long historical record, the expected return on the market is about 7 percent to 10 percent per year. Let's use the 10 percent as a benchmark.
If you have some money to invest for the long run, why not invest in common stocks?
With common stocks, you can improve your returns, especially if you enjoy the process and put some effort into learning the principles that master investors like Buffett have laid out.
Another great investor, Peter Lynch, echoes this viewpoint:
"An amateur who devotes a small amount of time to study companies in an industry he or she knows something about can outperform 95 percent of the paid experts who manage the mutual funds, plus have fun doing it."
Also read:
Commenting on selected KLSE stocks.
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