Russia-Ukraine War: How to Keep a Level Head And Invest Long Term
17 March 2022
In this article, I will be sharing my opinion on how to keep a level head and invest for the long-term, amidst the Russia and Ukraine war.
The Russian and Ukraine war has been ongoing for a few weeks now.
In middle of March, the leaders of Czech Republic, Poland and Slovenia crossed into Ukraine by Train to show Ukraine their ‘Unequivocal Support’.
Meanwhile, talks have been ongoing between Ukraine and Russia, with little signs of resolution as of now.
And President Zelensky has just addressed congress, calling on the US to do more and he implored President Biden to be “the leader of peace”. He also asked for more weapons and a no-fly zone.
The US will soon deliver $800 million more worth of antiaircraft and anti-armor missiles, with grenades, rifles, body armor and more.
The 2022 Russian invasion of Ukraine is indeed an event that not many has predicted.
So, in the middle of these volatility, how should we keep a level head as an investor and invest for the long-term?
1. First off, I think we should be patient. Like Peter Lynch says, watched stock never boils. So if there is no need, do not watch at stock prices all the time.
2. We understand that sometimes the hardest thing to do is not to do anything but often times, investors make most of the money in the waiting – not in the buying and selling.
3. That means that we have to keep a level head while waiting – if we are still sure that the price that we bought the stock and the business in the first place is indeed still correct.
4. If we feel we are still correct, the great investors do not let the market easily change our mind – stock price does not always equal to the stock value/business value.
5. As Warren Buffett say, the stock market is designed to transfer money from the active to the patient. So, we have to look beyond what is happening today and ensure that we are disciplined in buying good companies at a good price.
6. Patience is truly a competitive advantage as an investor — on top of having a better analytics on the same information that everyone else receives.
7. Think about it, if we were a business owner, a period of inactivity is not trying to sell our business will raise no eyebrow. But for public-market investor, not many people can sit still.
8. Like what Horace says, when things are steep, remember to stay level-headed. And we can stay level-headed by truly understanding what we own.
9. Ultimately knows that if the business does well, the stock will likely do well too – provided we do not overpay for them.
I do not think that the war will be easily solved.
There many factors at play and the relationships are very dynamic among many parties.
My hope is this war will be over sooner rather than later, and that it will not escalate into a wider conflict that might involve NATO, US and China.
In this time of volatility and chaos, I think the most important thing to do is to focus on the business we hold and see what is our view of the future of the business.
Like what I always share with my students, during the good times, please do not think it will last forever. During the bad times, the fortunate thing is that it will not last forever too.
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Chris Lee Susanto
Full-time investor, speaker, and editor of the investment blog Re-ThinkWealth.com and Founder at Value Investing Mentorship.
Chris started investing in stocks early at age 21 and is a big proponent of business-like stock investing – a mixture of both value and growth investing. He invests in companies where there is value to be found (as long as it is still within his circle of competence), be it a turnaround, depressed, value, or quality growth company (compounders). He either buys the stock outright or he profits through selling put or selling call options – or buying call options (buying and selling options are especially dangerous for those who do not know how to properly execute it).
Some of the places where Chris has been invited to speak or have added value as a mentor or writer includes Singapore Polytechnic, SMU Institute of Innovation and Entrepreneurship (IIE), Dollars and Sense, The New Savvy, Value Walk Blog, Investment Moats, NUS Tembusu College, NUS Investment Society, CGS-CIMB Singapore, Singapore Financial Conference by NTU IIC, The Financial Coconut Podcast, Money FM 89.3 and Internationally in Myanmar.
He is also a practitioner of Transcendental Meditation and Mindfulness practice. He also advocates regular exercise, enough sleep, and nutritious food as part of our lifestyle as an investor so that we can see things with a clearer lens and not be “caught” due to ignorance.
As of the time of this writing, Chris is focusing on setting up his MAS Licensed Fund with the goal to beat the market over the long run.
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