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Francois Rochon: Navigating Market Crashes

Francois Rochon, CIO of Giverny Capital, recently shared his approach to navigating market crashes on the Meb Faber Podcast. His perspective emphasizes acceptance, preparation, and strategic action rather than panic or futile attempts at market timing.

Here are the key takeaways:

  • Francois stresses that bear markets are inevitable and unpredictable; trying to forecast them is pointless, so investors should simply accept their occurrence.
  • He uses Charlie Munger’s analogy: setting low expectations – knowing your portfolio may be halved at some point – helps investors remain calm and philosophical during downturns.
  • Bear markets typically occur every seven to eight years, so readiness is more important than avoidance.
  • Even when fully invested, investors can profit from crashes by reallocating funds from less undervalued stocks to those that have become significantly more undervalued, thereby upgrading their portfolio’s quality.
  • Francois’s approach is rooted in patience and mental preparedness: don’t fear market crashes but use them as opportunities to acquire great businesses at bargain prices.

In addition to this video (embedded below), Francois also recently visited The Investor’s Podcast which is also worth a watch (here)

Click here to go to the external source.

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Disclaimer of liability

The above has been prepared by Børsgade ApS for information purposes and cannot be regarded as a solicitation or recommendation to buy or sell any security. Nor can the information etc. be regarded as recommendations or advice of a legal, accounting or tax nature. Børsgade cannot be held liable for losses caused by customers’/users’ actions – or lack thereof – based on the information in the above. We have made every effort to ensure that the information in the above is complete and accurate, but cannot guarantee this and accept no liability for errors or omissions.

Readers are advised that investing may involve a risk of loss that cannot be determined in advance, and that past performance and price development cannot be used as a reliable indicator of future performance and price development. For further information please contact info@borsgade.dk

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